Share market trading allows the traders to buy and sell the stocks or shares of publicly held companies. The stocks are traded on some exchange. Investors buy these stocks at the lowest possible price and try to sell it. At the highest possible price to gain profit from the stock. This phenomenon sounds simple. However, in practice, it is not that to accomplish a profit.
Now, the question arises how will you come to know that the price of stocks has really gone up? In order to solve this issue, there are many strategies and technical indicators. Which hints the price hike and lowering the prices. There are price charts in stock trading which represents the previous prices of the stocks over time. There are two scales in the chart representation. Y-axis is the price scale and the X-axis is the timescale. Charts are used to analyze the price movements. When the prices of stocks become higher, then the market is said to be uptrend market. Similarly, when prices of stocks become lower, then the market is said to be the downtrend market.
Several technical indicators are applied to the charts to predict the price movements. The data of stock prices are derived by applying certain formulae. These derived stock prices are plotted on charts and the market trend is predicted. As per the prediction, the investors take the decision of buying and selling the stocks.
We know that there are large numbers of factors that move the stock market significantly in one direction or another. Some of them are economic data, geopolitical events, and market sentiment, among a myriad of other factors. However, in each of these conditions, the market is a constant. There is a significant difference between supply and demand in any stock market move, no matter whether the move is up or down.