Technical analysis tip -1

Technical analysis tip -1 

Technical analysis is one of the most important part of stock market investment.Technical analysis is a methodology for forcasting the direction of price through the study of past market data mainly price and volume.

There are two type of indicator for technical analysis 

The two tyoe of indicator for techanical analysis are leading indicator and lagging indicator.

Leading indicator are used to identify the future price and direction of stock price.It is predictive in nature. However they give false signal very often.The main leading indicator used are RSI, Stochastic , William % R , Parabolic sar and commodity channel index.

Lagging indicator are very reliable for confirming the stock trend . Laggnig indicator are helpful in volitile market. The main lagging indicator are MACD, EMA , Bollinger band , ADX .

RSI indicator for techanical analysis

For Intraday - Time Frame 15 , RSI Setting 8 Peroid.

For Swing Trading - Time Frame 1 day , RSI Setting 14 Peroid , Find divergence 

For Long Term Investment - Time Frame 1 week , RSI Setting 14 Peroid , Find divergence