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Technical Analysis on Stocks

Stock Trading Using Technical Analysis – 4 tips for high profits The world of stock trading in unpredictable. To earn profit, you should learn the art of technical analysis. It can help traders earn profits.  Using technical analysis correctly can make a world of difference to your investment portfolio. Here we bring to you a few tips to make your equity technical analysis successful.  Trade Valid Data When done properly, it can help you get the odds in your favour, and to trade the odds, you need to have access to the meaningful data. Don’t day trade because day traders usually do not win and encountering the problem of short-term volatility is random.   Either follow the long-term trend or swing trade while looking for trades that last a week. Understand the concept of breakout methodology While support and resistance can hold, there is always a possibility that it can break. It is an undeniable fact that many of the leading trends in equity trading happen from new market highs NOT market lows. Most equity traders hate purchasing new highs because they feel they have missed some of the other move – while this is true that these trends often accelerate away and you should grit your teeth before entering.  Gain better understanding of support and resistance If you want to be a successful equity trader, you need to understand support and resistance in a much better way. Look for valid levels and these levels have been tested many times and in two different time frames.   Try and trade these tested valid levels and once again start with the weekly chart and carefully observe whether they line up with the daily levels. These are often counted as the best setups.  Use daily and weekly charts The best way to spot the major trends is to the weekly charts as well as daily charts. Remember, in stock trading, profits are typically made over the long run and these are apparent on the weekly trading chart. You can then rely on the daily chart to time your trading signals and exit and entry points. Keep it simple It is always good to keep things simple and so is the case with your trading system. Simple systems work best because they have elements to break and perform robustly in real time trading. Well, technical analysis, when done correctly can help you earn a lot of money in equity trading.  By basing your system on the tools discussed above, you can surely start stock trading in a better way.