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WHAT NEXT?
Frustrated???!! !
WHAT NEXT?
Still Frustrated???!! !
learn
Dr. C. P. Gupta
Before we proceed,
FIRST THING!!!
SECOND THING!!!
an analysis that includes the use of share prices trading volume; and other market data such that one can formulate rules telling the TECHNICIAN when to buy a share or when to sell a share.
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The principle of confirmation of trends/change in trends : Whatever the trends that are emerging or changing in Industrial Average must be confirmed by Transportation Average.
If trends in share prices are in contradiction with the trends in the industrial production or transportation of goods, then one should not design a trading strategy in shares and must wait till one gets the confirmation of trends.
Exponential Moving Average Averages are basically to identify the underlying TRENDS!!!!!
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MACD trading method is a form of trend-deviation indicator using two EMAs. MACD = Difference between two EMAs or a ratio. If it is a ratio then it is obtained by dividing the shorter duration EMA by the longer duration one. MACD can be further smoothed by calculating another EMA; and plotted as a separate line. Such a line is called SIGNAL LINE.
If RSI is over 70 then it is called the OVERBOUGHT ZONE and if RSI is below 30 then it is called the OVERSOLD ZONE.
[A] THE ODD-LOT THEORY : Usually, odd-lot transactions are undertaken by small investors who are not having access to necessary information and they are not intelligent investors. Thus, if they sell more, it is a BUY signal and if they buy, it is a SELL signal. The following are usually used indicators in this regard:
Odd - Lot Balance Index Odd - Lot Short Sales Index
[B] MUTUAL FUND LIQUID ASSET RATIO : it is a ratio between Mutual Funds liquid assets and total Mutual Funds assets.
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STOCHASTIC - RANBAX
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