In this guide, you will know about three terms that you must know if you want to learn technical analysis of stocks.
The technical analyst use footprint charts in stock trading with the aim to provide the volume of the stock and price data of the stocks together. Both the data are represented in the chart at one data point for the convenience of traders and technical analysts so that they can read and observe the information about the stocks at one place. The footprint chart permits the technical analyst to look at the price bar as this provides more transparency than a normal/ traditional chart. Technical analysts use this chart to find the unique opportunity to buy and sell the security as well as to generate the accurate stock future tips, stock cash tips and stock option tips. The technical analysts of Money Classic Research are expert in obtaining the best buying and selling signals from charts.
Diamond Top Formation
There are several formations during the study of the technical charts in the technical analysis of the stocks. These formations indicate the reversal or continuation patterns of the trend. Here the reversal patterns indicate the end of one trend and beginning of the opposite trend. The continuation patterns indicate that the current trend will be constant. One of the common reversal trend patterns is diamond top formation. It signals the end of an uptrend. These chart patterns indicate the change in the trend of the market and with the help of this, technical analysts obtain accurate intraday cash tips.
52 Week Range
Traders and technical analysts require knowing the previous low and high prices of the stocks in order to predict the future prices of the stock. To serve this purpose of them, the 52-week range was introduced. The name itself suggests the working of this indicator, as it reflects the low and high range of the stocks at which the same stock has been traded in the previous 52 weeks. Technical analysts of Money Classic Research compare present stock price with previous 52-week range to get a view of how the stock is doing. It also indicates the fluctuation of the prices of the stock in the market. However, with this information analysts can find the future potential range of the stock and the volatility of the stocks through which traders can obtain accurate stock future tips and equity tips.