Making an investment decision is not easy especially for a person who is a novice or new to the stock market scenario. The journey of an investor starts with learning about how, when, and where he should invest in stocks.
It is only when the person has spent a decent amount of time in the share market studying various kinds of stocks its movement with day-to-day transactions only then can make an active decision regarding any kind of investment. Share Market Profile is a good training company that provides the best share market training in Chennai for new and old investors giving them a clear understanding of how to study trends and only then making an informed decision of investing in the stock market.
How to Study a Trend?
In a share market, a trend is observed over a period of time. The most usual trends observed are the upward and the downward trend of the market. An upward trend means the share prices are bullish which means the stock prices are picking up. A downward trend means the share prices are bearish which means the stock prices are falling. While analyzing the trend of a stock or a sector the present and the past performance of the company and the sector are taken into account. The highest price at which the stocks were sold and the lowest price of the stock is all taken recorded before making a prediction or establishing a trend.
Trend Analysis is a technical analysis tool that is used by equity analysts and stock marketers to understand where the funds can be parked to earn a premium on the investment. Trends can be established for industry sectors as well. At every point of time, an analyst who is abreast with the movements in the stock market or changes in government rules and regulations which can have an impact on the emotion of the investors can easily establish the trending sector where most of the investments are queueing up. It can also establish which is an evolving sector and where the investment in the future is going to take place. This is a data-driven analysis that requires past and present data for the prediction of future investments. Stock market analysis can be learned by the training provided by Share Market Profile, the best trainers for share market training in Chennai.
Identifying a Trend by Moving Averages
The trend of investment and movement of stocks are established with the help of this analytical tool. An updated average price can be predicted or created with the help of the data for a certain period of time. Simple moving average and Exponential moving average are the two averages used for establishing a trend in the stock market for a specific period of time. The lag for a longer period of time is more and for a shorter period of time is less. A short-term investor would necessarily look into the findings of a short-term moving average and a long-term investor would look into the findings of a long-term moving average before making an investment decision.
Trend Analysis with the Help of Momentum Indicator
As the word suggests momentum which is related to speed. The word speed in this context is related to the speed with which a certain stock price rises or falls. The tool gives the overall change of price of a stock in a certain period of time frame. This determines how volatile a certain stock or sector is. This too comes really handy in a bullish market.
Chart Patterns Predicting Trendlines
Different kinds of charts are used to predict the trend in which the stock price would move in the present and in the future. It is a technical analysis tool. Distinct charts can be formed with the help of the price pattern of a stock. The pattern can either be upward or downward. For a specific time frame, the highest price of the stock attained is put across in the chart, and also the lowest price of the stock is also noted in the graph which is being charted. The chart helps in predicting the stock prices in the future and ascertaining if it would be wise to make any kind of investment in it. These charts are easy to read and draw it basically helps the analyst to locate support or resistance for a stock in the chart. Technical analysis can be made easy with training from Share Market Profile which is one of the best training providers in share market training in Chennai. Get in touch with them by clicking on the link www.sharemarketprofile.com.