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What is Technical Analysis?

        Technical analysis is a science of chart reading for identifying the market trend. It is used in shares, commodities and currencies. Technical analysis help us to determine future price with previous price levels and volume. It shows the mass psychology of traders and speculators. Thus, chart analysis act as a tool for market prediction.
           No one can control the market. It is a place for competition of  bulls and bears. So market is guided by human emotions and reactions. Each trader should know the influence of  this  phenomena. Technical analysis is the art of understanding mass psychology. It reveals the supply- demand mechanism in each scrip. For accurate analysis ,experts use technical indicators and chart patterns at charting softwares. If we are getting the prevailing trend of the market, 50% job is done.Theories such as Elliot Wave,Dow are famous among students. However traders use technical indicators such as Moving Averages, Ichimoku, Relative Strength Index, Stochastics and Parabolic SAR. It helps to understand the direction of the market.It may be Up, Down or Sideways.Combination of two or three indicators with chart pattern analysis can increase the accuracy of market prediction.

             Now a days, technical analysis is popular among market participants in stocks, metals and currencies.Analysts at Mutual funds and stock broking companies use it for buy and sell decisions. The case of scientific traders is also the same. They analyse with the support and resistance levels in  chart patterns. Chart patterns are two types.Reversal and Continuation. A  professional trader should learn all these things before making it an additional income source.
       Technical analysis is the base for market prediction in all types of exchange trading. By  consistent practice, it will be simple and accurate to predict the  trend with a one minute glance at charts.

         So if you need to make profit, identify the pulse and trend of the market with technical analysis. You can feel the momentum  of  the  market by following the trend. It will show  you  the  entry and exit levels for making regular gains at market.