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How To Read Technical Analysis On Stock Trading

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icoulee.com: Along with today's developments, there are many ways you can read technical analysis on stock trading. As an investor you can apply various strategies to make investments.one of them is when you choose to dive as a trader in short-term stock trading, then you need to apply stock technical analysis. This aims to make it easier for you to know the level of profit or loss that you can get.


Actually, this technical analysis is a simple concept but its application is quite difficult.Sometimes you will see a downward direction, it means that the stock price movement is predicted to decline and most likely will fall again, aka a downtrend.




How to Read Stock Trading Technical Analysis

Actually the concept of technical analysis is quite simple, you only see where the graph tends to go.on this occasion we will explain several ways to read stock technical analysis on a stock trading. For more details, please refer to the following explanation:


See trends on the chart

The first step you need to know as a trader is that you need to open a chart.well, by opening the chart, you can see where the current price trend of a stock issuer is. By looking at the chart you can see trends in the short, medium and long term.


When you have studied all the current trends, you can easily determine which trend is suitable for you to follow. Actually, you can choose any trend according to your choice.To see a free chart you can access https://finance.yahoo.com/ then type the stock code in the search box, then select a chart.


After that you can choose the best strategy to make a profit.You can take a position that is in line with the trend rate, of course, as much as possible, choose stocks whose chart has just experienced a reversal from downtrend to uptrend.


Determine the support and resistance levels

How to read technical analysis can also be done by determining the support and resistance levels.in this case you can look for opportunities to sell in the resistance area and opportunities to buy in the support area. So you as a trader can get a long position in the Support area when the trend is up.besides that there are those who take advantage of this support and resistance level for warning only.


Using a Moving Average (MA)

There are several indicators that you can use to identify trends, one of which is by using the Moving Average indicator. But sometimes traders also have difficulty drawing a trendline.well, this MA movement can help you to identify the current trend.


When you see the Moving Average moving downward as the price drops down, it can be said that the stock trend is experiencing a downtrend. Besides that, MA can also act as a support and resistance area.Moving averages that are usually used are MA20, MA50, MA100 and MA200.


Determine profit and stop loss targets

Then you can make a profit target and stop loss on each transaction. Then you must not forget about the ratio, reward, and risk rules when making a stop loss. So the rule is that the risk of loss cannot be greater than the profit target.don't get wrong with these rules to get the best results.


Oscillator indicator filter

You can use this oscillator indicator to find out a picture regarding the market in an overbought state. This overbought condition indicates the price of an issuer is rising and high.so you can see the oscillator indicator is pointing down or up.


Conclusion

This is a brief explanation of stock technical analysis. Hopefully with this somewhat complicated explanation you can understand it so that it is easier to read technical analysis of stock trading.