Best Technical Analysis Tools for Share Market

Best Technical Analysis Tools for Share Market

Stock trading is certainly a matter of pure calculation. Everything depends on numbers and your experience also counts here. But, when it comes to taking decisions in this field, numbers are the most valuable aspect that one should take into consideration. This is the reason why technical analysis tools for stock market trading are so much in demand.

These tools help in understanding and predicting the price movements of any stock. There are countless technical analysis tools available in the web world, and all of them claim to be the best in the business. Quite obviously, not all of them are telling the truth.

Check Some Technical Analysis Tools for Stock Trading

So, the question is- how to find out the best options in this regard? Well, you need not have to toil in order to figure them out, because below are the details. We have mentioned some of the best technical analysis tools that you can consider for stock trading.

Simple Moving Average

Simple Moving Average

In short SMA, this tool provides you the daily mean value of any stock in the last N number of days. You can choose to directly view the average value during the last 20, 50, and 200 days. So, it becomes easier for the traders know how the stocks of any particular company are performing. This tool is basically used for providing support as well as resistance areas. In addition, the crosses are considered as the signals for buying and selling the stocks. Thus, Simple Moving Average can be really useful.

Moving Average Convergence/Divergence

Moving Average Convergence Divergence

Also known as MACD, this analysis tool is quite similar to that of SMA. However, the basis of calculation used by this tool is somewhat different. The indicators provided by MACD are quite versatile in nature, and you can consider them as nearly signal as well.

Relative Strength Index

Relative Strength Index

If you are good with calculations, this tool can be really useful for you. RSI is certainly a bit tricky in the area of mathematics, but the results generated by this tool are quite impressive. This tool makes a comparison between profits and losses, and on the basis of it, the tool comes up with charts that can be used for making decisions. When it comes to figuring out the intensity of a move, then RSI seems like a much better tool in the market. The most common duration considered by this tool is 14-days.

On Balance Volume

On Balance Volume

This is an indicator which is utilized for measuring the upward and downward flow of any stock’s volume, in regard to its value or price. This tool is quite simple in nature, and it maintains a cumulative total of stock’s volume by adding/subtracting the volume of each period. Quite certainly, it depends on the price movement.

Average Directional Index

Average Directional Index

Also known as ADX, this analysis tool is another highly effective trend indicator that can be used for measuring the momentum and strength of an ongoing trend. It mainly focuses on the momentum of any stock, rather than its direction. You can certainly rely on it.

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