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Dissertation Submitted to the Mumbai University in partial fulfilment of the requirements for the award of the Degree of MASTERS of MANAGEMENT STUDIES (M.M.S.)
Submitted by: VISHAL SOPANRAO NABDE (Roll No.18)
IBSAR® Institute of Management Studies, Karjat
University of Mumbai March’ 2010
I hereby declare that the dissertation “Technical Analysis” submitted for the Master’s of Management Studies (M.M.S.) Degree at Mumbai University’s IBSAR® Institute of Management Studies,
Karjat, is my original work and the dissertation has not formed the
basis for the award of any degree, associate ship, fellowship or any other similar titles.
Place: Karjat Date:
Signature of the Student
This is to certify that the dissertation entitled “TECHNICAL ANALYSIS” is the bonafide research work carried out by Mr. Vishal Nabde student of MMS, at IBSAR® Institute of Management Studies, Karjat during the year 2008 -2010, in partial fulfilment of the requirements for the award of the Degree of Master of Management Studies and that the dissertation has not formed the basis for the award previously of any degree, diploma, associate ship, fellowship or any other similar title.
(Dr. Jayanti Gokhale Dy. Director IBSAR® Institute of Management Studies, Karjat)
(Dr. M.L. Moonga, Director, IBSAR® Institute of Management Studies, Karjat)
TABLE OF CONTENTS S. Without his help it would have been impossible for me to complete the project. Place: Karjat Date: Signature of the student. K. Surendranathan for having given me his valuable guidance for the project. I thank Mr.K. Chapter 1. PARTICULARS Introduction  PAGE NO.In the first place. I would be failing in my duty if I do not acknowledge with a deep sense of gratitude the sacrifices made by my parents and thus have helped me in completing the project work successfully. 06 .NO.
Chapter 8. Chapter 4. Chapter 9. Chapter 6. Chapter 3. Chapter 7.Chapter 2. Chapter 5. Technical analysis Drawbacks / limitations of technical analysis Tools & Instruments in technical analysis Trends In Technical Analysis 10 13 16 36 46 48 74 85 99 Why Volume Is Important Chart Patterns Technical Indicators Technical analysis of Stock “Power Grid” Bibliography INTRODUCTION :WHAT’S THIS EQUITY ANALYSIS?  . Chapter 10.
Professional investor will make more money & less loss than. In Fundamental analysis a company s goodwill. It should be pointed out that. Be ruthless & calculating. The subject of Equity analysis. Equity analysis is basically a combination of two independent analyses.e. who let their heart rule. you are out to make money. The financial analysts always need yardsticks to evaluate the efficiency & performances of any business unit at the time of investment. plotting of CHARTS to extremely sophisticated indicators. this equity analysis does not discuss how to buy & sell shares. Greed must be avoided patience may be a virtue. Fundamental analysis is useful in long term investment decision.  . but does discuss a method which enables the investor to arrive at buying & selling decision. pencil. In Equity Analysis anticipated growth. A general investor can apply the principles by using the simplest of tools: pocket calculator. Decision should be based on actual movement of share price measured both in money & percentage term & nothing else. calculations are based on considered FACTS & not on HOPE. ruler. but impatience can frequently be profitable. namely fundamental analysis & Technical analysis. Their head eliminate all emotions for decision making. watchful attention. i. chart paper & your cautious mind. the attempt to determine future share price movement & its reliability by references to historical data is a vast one. covering many aspect from the calculating various FINANCIAL RATIOS.
It appeals mainly to short term traders. i. The focus of technical analysis is mainly on the internal market data. Technical analysis mainly seeks to predict the short term price travels.  . prices & volume data.its performances. It is the oldest approach to equity investment dating back to the late 19th century. leverage. profitability & financial health was checked & analysis with the help of ratio analysis for the purpose of long term successful investment. Assumptions for the Equity Analysis. Technical analysis refers to the study of market generated data like prices & volume to determine the future direction of prices movements. turnover.e. liquidity.
so the investment object has vital importance associated to return along with risk. 2. 3. 5. Works only in normal share-market conditions with great reliability. History repeats: investors & speculators react the same way to the same types of events homogeneously. it also works in abnormal share-market conditions. You are buying stock & not companies. but with low reliability. Cash management gets the magnitude role. whether it is short run or long run.1. so don t be curious or panic to do post-mortem of companies performances. 6. Equity analysis is purely based on the INVESTMENT PHILOSOPHY . 7. Portfolio management. because the scenario of equity analysis is revolving around the term money 4. risk management was up to the investor s knowledge.  . Capital market trend is always a friend.
10. 9. perceptions. FUNDAMENTAL ANALYSIS TECHNICAL ANALYSIS Technical analysis :“Technical analysis refers to the study of market generated data like prices & volume to determine the future direction of prices movements. ENVIRONMENT & ECONOMICAL ANALYSIS. it also has some exceptions.”  . An individual perceptions about the investment return & associated risk may differ from individual to individual.8. Capital market has a typical market psychology along with other issues like. EQUITY ANALYSIS. tradition s & trust. the crowd Vc the individual. Although the equity analysis is art as well as sciences so.
It is the tool of financial analysis. prices & volume data. i. It is important criteria for selecting the company to invest. In fact the decision made on the basis of technical analysis is done only after inferring a trend and judging the future movement of the stock on  . It appeals mainly to short term traders. This Technical analysis is helpful to general investor in many ways. Technical analysis involves the use of various methods for charting. It uses charts and computer programs to study the stock’s trading volume and price movements in the hope of identifying a trend. For that matter a verity of tools was consider. The focus of technical analysis is mainly on the internal market data. It is the oldest approach to equity investment dating back to the late 19th century. calculating & interpreting graph & chart to assess the performances & status of the price. It also provides the base for decision-making in investment. which not only studies but also reflecting the numerical & graphical relationship between the important financial factors. It provides important & vital information regarding the current price position of the company.Technical analysis mainly seeks to predict the short term price travels. The one of the most frequently used yardstick to check & analyze underlying price progress.e.
which is effective for short-term investing. proposed the Dow theory. then editor of the Wall Street Journal. and most use some combination of the two.the basis of the trend. Technical analysts do not attempt to measure a security's intrinsic value. Technical analysis is a method of evaluating securities by analyzing the statistics generated by market activity. others use technical indicators and oscillators. Technical Analysis assumes that the market is efficient and the price has already taken into consideration the other factors related to the company and the industry. technical analysts' exclusive use of historical price and volume data is what separates them from their  . History of Technical Analysis: Technical Analysis as a tool of investment for the average investor thrived in the late nineteenth century when Charles Dow. there are also many different types of technical traders. It is because of this assumption that many think technical analysis is a tool. but instead use charts and other tools to identify patterns that can suggest future activity. In any case. Some rely on chart patterns. such as past prices and volume. He recognized that the movement is caused by the action/reaction of the people dealing in stocks rather than the news in itself. Just as there are many investment styles on the fundamental side.
6. 2. 4. Shifts in demand & supply bring about change in trends. Technical analysis does not able to explain the rezones behind the employment or selection of specific tool of Technical analysis. technical analysts don't care whether a stock is undervalued the only thing that matters is a security's past trading data and what information this data can provide about where the Security might move in the future. This shift s can be detected with the help of charts of manual & computerized action.fundamental counterparts. Supply & demand are influenced by variety of supply & demand affiliated factors both rational & irrational. Unlike fundamental analysts.  . 5. 3. because of the persistence of trends & patterns analysis of past market data can be used to predict future prices behaviors. Barring minor deviations stock prices tend to move in fairly persistent trends. These include fundamental factors as well as psychological factors. Market prices are determined by the interaction of supply & demand forces. Drawbacks / limitations of technical analysis: 1. Basic premises of technical analysis: 1.
the trader can see where momentum is rising. a price is dipping or other events are developing that show the best entry point and time for the most profitable trade. most traders will focus on using technical indicators to find and place their trades. 3. Why we use TECHNICAL ANALYSIS? 1) Technical analysis provides information on the best entry and exit points for a trade. With the constant movement of various currencies against each other in the Forex market.  . employ it the value of such analysis trends to reduce.2. IS TECHNICAL ANALYSIS DIFFICULT? 1) Technical analysis is not difficult. The technical analysis must be a self defeating proposition. As more & more people use. 2) On a chart. but it requires studying different types of charts such as the hourly or daily charts. a trend is forming. The technical analysis failed to signal an uptrend or downtrend in time.
While technical analysis can be used on a timeframe of weeks.knowing which technical indicators to use and how to use them. As we've mentioned. on the other hand. 3) One way to avoid getting frustrated by all the lines. 2) Computers and the Internet have made this process much easier. Fundamental analysis. looks at economic factors. technical analysis looks at the price movement of a security and uses this data to predict its future price movements. Try not to clutter your chart with too much information. colors. Most brokers provide basic charts and technical indicators for free or at a very low cost.  . Fundamental vs. days or even minutes. Fundamental analysis takes a relatively long-term approach to analyzing the market compared to technical analysis. fundamental analysis often looks at data over a number of years. Technical Analysis Technical analysis and fundamental analysis are the two main schools of thought in the financial markets. and graphics is to focus on using only a few indicators that will provide you with the information needed. known as fundamentals.
But there is usually a fairly strong consensus of a stock's future earnings that the average investor cannot disprove. That's not to say that knowing what a security should sell for isn't important--it is. then knowing what a security should sell for (i..  .e. current expectations) with comparable historical price action to predict a reasonable outcome. Usually the following tools & instruments are used to do the technical analysis: Price Fields Technical analysis is based almost entirely on the analysis of price and volume. The devout technician might define this process as the fact that history repeats itself while others would suffice to say that we should learn from the past..The future can be found in the past If prices are based on investor expectations. Technical analysis is the process of analyzing a security's historical prices in an effort to determine probable future prices. This is done by comparing current price action (i. fundamental analysis) becomes less important than knowing what other investors expect it to sell for.e. The fields which define a security's price and volume are explained below.
the first trade of the day). the Open is especially important as it is the consensus price after all interested parties were able to "sleep on it..This is the lowest price that the security traded during the period.g. increasing prices accompanied with increasing volume) is important. Close . Due to its availability.Open . there are always sellers willing to sell at higher prices." High .e. When analyzing daily data. The relationship between the Open (the first price) and the Close (the last price) are considered significant by most technicians. It is the point at which there were more buyers than sellers (i. the Close is the most often used price for analysis. This relationship is emphasized in candlestick charts. there are always buyers willing to buy at lower prices. Low ..This is the price of the first trade for the period (e. Volume . but the Low represents the lowest price sellers were willing to accept).This is the number of shares (or contracts) that were traded during the period...e.  .This is the last price that the security traded during the period.g.This is the highest price that the security traded during the period. but the High represents the highest price buyers were willing to pay). It is the point at which there were more sellers than buyers (i. The relationship between prices and volume (e.
e. or expired) of a future or option. Open interest is often used as an indicator. Price Styles Price in a chart can be displayed in four styles: 1. the price you will pay to buy the security).e.This is the total number of outstanding contracts (i. 2.. Line Chart. those that have not been exercised..e. Ask . Bid .. the price you will receive if you sell). closed.  .This is the price a market maker is willing to pay for a security (i.Open Interest .This is the price a market maker is willing to accept (i. Bar Chart.
Point and Figure Charts 1) Bar Charts : The highs and lows of a foreign currency are plotted in a diagram and the points are joined with vertical lines (bars). It gives the detailed information about every aspect. 2) Line Chart. Prices on the y-axis. The exchange rates for each time period are plotted in a diagram and the points are joined. 4.3. Candlestick Chart. A small horizontal tick to the left denotes the opening level while a small horizontal tick to the right represents the closing price of each interval. time on the x-axis.  .
This can be a problem because important information for exchange rate analysis can be lost. Line charts do not show price movements within a time period.  .The line chart chooses for example the closing price of consecutive time periods. but can also work with daily. 3) Candlestick Chart. The relatively easy handling of line charts is a great advantage. official fixings. A candlestick is white if the closing price is higher than the opening price. A candlestick is black if the closing price is lower than the opening price. This problem was remedied with the development of bar charts that represent a more sophisticated form of line chart.
Candlestick charts display the open. low. they don't involve any calculations.In the 1600s. high. Steven Nison is credited with popularizing candlestick charting and has become recognized as the leading expert on their interpretation. Because candlesticks display the relationship between the open. This technique is called candlestick charting. Candlestick charts are simply a new way of looking at prices.  . and closing prices in a format similar to a modern-day barchart. the Japanese developed a method of technical analysis to analyze the price of rice contracts. but in a manner that extenuates the relationship between the opening and closing prices.
a small range between the open and closing prices) and a long lower  . it is called a Hanging Man. and closing prices.. nor were they intended to be displayed on securities that lack opening prices. low. Bullish Patterns 1) Long white (empty) line.high. A Hammer is identified by a small real body (i. 2) Hammer. The interpretation of candlestick charts is based primarily on patterns. The most popular patterns are explained below. It occurs when prices open near the low and close significantly higher near the period's high. This is a bullish line.e. they cannot be displayed on securities that only have closing prices. This is a bullish line if it occurs after a significant downtrend. If the line occurs after a significant up-trend.
3) Piercing line. The first line is a long black line and the second line is a long white line. it acts as a reversal pattern). the low is significantly lower than the open.e.  . This pattern is strongly bullish if it occurs after a significant downtrend (i.. 4) Bullish engulfing lines.. The second line opens lower than the first line's low. high. This is a bullish pattern and the opposite of a dark cloud cover. It occurs when a small bearish (filled-in) line is engulfed by a large bullish (empty) line. but it closes more than halfway above the first line's real body. and lose). The body can be empty or filled-in.shadow (i.e.
Thus. 6) Bullish doji star. The "star" indicates a possible reversal and the bullish (empty) line confirms this. this pattern usually indicates a reversal following an indecisive period. A "star" indicates a reversal and a doji indicates indecision. The star can be empty or filled-in.. as in the  .g.5) Morning star. This is a bullish pattern signifying a potential bottom. You should wait for a confirmation (e.
This is a bearish line.morning star. These lines are bearish if they occur after a significant uptrend. If this pattern occurs after a significant downtrend. Bearish Patterns 1) Long black (filled-in) line. it is called a Hammer. 2) Hanging Man.e. above) before trading a doji star. They are identified by small real bodies (i.. The first line can be empty or filled in. It occurs when prices open near the high and close significantly lower near the period's low. a small range  .
and close).  .e.between the open and closing prices) and a long lower shadow (i. 3) Dark cloud cover. The bodies can be empty or filled-in. The pattern is more significant if the second line's body is below the center of the previous line's body (as illustrated).. high. the low was significantly lower than the open. This is a bearish pattern.
The "star" indicates a possible reversal and the bearish (filled-in) line confirms this. It occurs when a small bullish (empty) line is engulfed by a large bearish (filledin) line. This is a bearish pattern signifying a potential top. The star can be empty or filledin.e.  .4) Bearish engulfing lines. 5) Evening star. it acts as a reversal pattern).. This pattern is strongly bearish if it occurs after a significant uptrend (i.
 . The star's body must appear near the low price and the line should have a long upper shadow. This pattern suggests a minor reversal when it appears after a rally. A star indicates a reversal and a doji indicates indecision.5) Doji star. Thus. as in the evening star illustration) before trading a doji star. 6) Shooting star. this pattern usually indicates a reversal following an indecisive period..g. You should wait for a confirmation (e.
and closing prices. This line also signifies a turning point. and the low is significantly lower than the open. It occurs when the open and close are the same. high.Reversal Patterns 1) Long-legged doji.  . 2) Dragon-fly doji. and the range between the high and low is relatively large. This line often signifies a turning point. It occurs when the open and close are the same.
low.  . A star is a line with a small real body that occurs after a line with a much larger real body. close. This line also signifies a turning point. Stars indicate reversals. and low are the same. and closing prices. The shadows may overlap. where the real bodies do not overlap. It occurs when the open.3) Gravestone doji. 4) Star. and the high is significantly higher than the open.
You should wait for a confirmation (e. are relatively small.. this pattern usually indicates a reversal following an indecisive period.5) Doji star.  . They occur when the distance between the high and low.g. A star indicates a reversal and a doji indicates indecision. as in the evening star illustration) before trading a doji star. Neutral Patterns 1) Spinning tops. and the distance between the open and close. These are neutral lines. Thus.
In this example. Double doji lines (two adjacent doji lines) imply that a forceful move will follow a breakout from the current indecision. This pattern indicates a decrease in momentum. 3) Harami ("pregnant" in English). These lines can appear in several different patterns. The security opened and closed at the same price. a bullish (empty) line  . This line implies indecision. It occurs when a line with a small body falls within the area of a larger body.2) Doji.
This implies a decrease in the bullish momentum.with a long body is followed by a weak bearish (filledin) line. This pattern also indicates a decrease in momentum.  . 4) Harami cross. except the second line is a doji (signifying indecision). The pattern is similar to a harami.
Example 4 ) Point And Figure Charts The point and figure chart is not well known or used by the average investor but it has had a long history of use dating back to the first technical traders. This type of chart reflects price movements and is not as concerned  .
These types of charts also try to neutralize the skewing effect that time has on chart analysis. you will notice a series of Xs and Os. or 1 point for  . The Xs represent upward price trends and the Os represent downward price trends.about time and volume in the formulation of the points. a box represents $1. and give investors an idea of the date. or insignificant price movements. The point and figure chart removes the noise. There are also numbers and letters in the chart. in the stock. Each box on the chart represents the price scale. When first looking at a point and figure chart. which can distort traders' views of the price trends. which adjusts depending on the price of the stock: the higher the stock's price the more each box represents. these represent months. On most charts where the price is between $20 and $100.
signalling a trend change. Take a look at the chart below:  .the stock. This is usually set at three but it can also be set according to the chartist's discretion. The reversal criteria set how much the price has to move away from the high or low in the price trend to create a new trend or. it shifts to the right. When the price trend has moved from one trend to another. The meaning in finance isn't all that different from the general definition of the term . TRENDS IN TECHNICAL ANALYSIS The Use of Trends One of the most important concepts in technical analysis is that of trend.a trend is really nothing more than the general direction in which a security or market is headed. how much the price has to move in order for a column of Xs to become a column of Os. The other critical point of a point and figure chart is the reversal criteria. in other words. or vice versa.
However.Isn’t it hard to see that the trend is up. it's not always this easy to see a trend:  .
A More Formal Definition Unfortunately. which is  . Point 2 in the chart is the first high. For example. an uptrend is classified as a series of higher highs and higher lows. while a downtrend is one of lower lows and lower highs. but there isn't a clear indication of which direction this security is headed. you will probably notice that prices do not tend to move in a straight line in any direction. trends are not always easy to see. In any given chart.There are lots of ups and downs in this chart. it is the movement of the highs and lows that constitutes a trend. In other words. defining a trend goes well beyond the obvious. In technical analysis. It is an example of an uptrend. but rather in a series of highs and lows.
down or nowhere.  . when each successive peak and trough is higher. In any case. it's a downtrend. you might even say that a sideways trend is actually not a trend on its own. the market can really only trend in these three ways: up. it's a sideways or horizontal trend.Sideways/Horizontal Trends As the names imply. If you want to get really technical. If the peaks and troughs are getting lower.determined after the price falls from this point.Downtrend 3.Uptrend 2. For this to remain an uptrend each successive low must not fall below the previous lowest point or the trend is deemed a reversal. Point 3 is the low that is established as the price falls from the high. but a lack of a well-defined trend in either direction. it's referred to as an upward trend. Types of Trend There are three types of trend: 1. When there is little movement up or down in the peaks and troughs.
Along with these three trend directions, there are three trend classifications. A trend of any direction can be classified as a long-term trend, intermediate trend or a short-term trend. In terms of the stock market, a major trend is generally categorized as one lasting longer than a year. An intermediate trend is considered to last between one and three months and a near-term trend is anything less than a month. A long-term trend is composed of several intermediate trends, which often move against the direction of the major trend. If the major trend is upward and there is a downward correction in price movement followed by a continuation of the uptrend, the correction is considered to be an intermediate trend. The short-term trends are components of both major and intermediate trends. Take a look a Figure 4 to get a sense of how these three trend lengths might look.
When analyzing trends, it is important that the chart is constructed to bestreflect the type of trend being analyzed. To help identify long-term trends, weekly charts or daily charts spanning a five-year period are used by chartists to get a better idea of the long-term trend. Daily data charts are best used when analyzing both intermediate and short-term trends. It is also important to remember that the longer the trend, the more important it is; for example, a one-month trend is not as significant as a five-year trend.
A trend line is a simple charting technique that adds a line to a chart to represent the trend in the market or a stock. Drawing a trend line is as simple as drawing a straight line that follows a general trend.
These lines are used to clearly show the trend and are also used in the identification of trend reversals. An upward trend line is drawn at the lows of an upward trend. This line represents the support the stock has every time it moves from a high to a low. Notice how the price is propped up by this support. This type of trend line helps traders to anticipate the point at which a stock's price will begin moving upwards again. Similarly, a downward trend line is drawn at the highs of the downward trend. This line represents the resistance level that a stock faces every time the price moves from a low to a high.
the interpretation remains the same. in which case traders can expect a sharp move in the direction of the break. A channel can slope upward. downward or sideways but. regardless of the direction. Traders will expect a given security to trade between the two levels of support and resistance until it breaks beyond one of the levels. Along with clearly displaying the trend. is the addition of two parallel trend lines that act as strong areas of support and resistance.  . or channel lines. The upper trend line connects a series of highs. while the lower trend line connects a series of lows. channels are mainly used to illustrate important areas of support and resistance.Channels A channel.
" illustrating how important trend analysis is for technical traders  . As long as the price does not fall below the lower line or move beyond the upper resistance. the upper trend line has been placed on the highs and the lower trend line is on the lows. The Importance Of Trend It is important to be able to understand and identify trends so that you can trade with rather than against them. Two important sayings in technical analysis are "the trend is your friend" and "don't buck the trend. the range-bound downtrend is expected to continue. and has remained rangebound for several months.A descending channel on a stock chart. The price has bounced off of these lines several times.
chartists look at the volume bars that can usually be found at the bottom of any chart.IMPORTANCE OF VOLUME :What Is Volume? Volume is simply the number of shares or contracts that trade over a given period of time. To determine the movement of the volume (up or down). Volume bars illustrate how many shares have traded per period and show trends in the same way that prices do.  . The higher the volume. the more active the security. usually a day.
On the other hand. Any price movement up or down with relatively high volume is seen as a stronger. it is a sign that the reversal is probably for real. that a stock jumps 5% in one trading day after being in a long downtrend. If  . Is this a sign of a trend reversal? This is where volume helps traders.Why Volume Is Important? Volume is an important aspect of technical analysis because it is used to confirm trends and chart patterns. If volume is high during the day relative to the average daily volume. Volume should move with the trend. if the volume is below average. for example. more relevant move than a similar move with weak volume.Say. there may not be enough conviction to support a true trend reversal.
it is usually a sign of weakness in the trend. For example. Volume Precedes Price  . the quality of the signal formed by the pattern is weakened. If the previous relationship between volume and price movements starts to deteriorate. triangles. Volume And Chart Patterns The other use of volume is to confirm chart patterns. there are several pivotal points that are vital to what the chart is able to convey to chartists.prices are moving in an upward trend. it is a case of divergence. a process which we'll describe in more detail later in this tutorial. if the volume is not there to confirm the pivotal moments of a chart pattern. When volume tells a different story. flags and other price patterns can be confirmed with volume. it is a sign that the trend is starting to lose its legs and may soon end. which refers to a contradiction between two different indicators. The simplest example of divergence is a clear upward trend on declining volume. Patterns such as head and shoulders. In most chart patterns. volume should increase (and vice versa). Basically. if the stock is in an uptrend but the up trading days are marked with lower volume.
we can move on to charts. which help to identify trading opportunities in prices movements. While there are general ideas and components to every chart pattern. there is no chart pattern  . Chartists use these patterns to identify current trends and trend reversals and to trigger buy and sell signals. history repeats itself. Based on the historic trend of a chart pattern setting up a certain price movement. and that these patterns signal a certain high probability move in a stock. it is usually a sign that the upward run is about to end. Volume is closely monitored by technicians and chartists to form ideas on upcoming trend reversals. The idea is that certain patterns are seen many times. Now that we have a better understanding of some of the important factors of technical analysis. CHART PATTERNS :A chart pattern is a distinct formation on a stock chart that creates a trading signal. the third of which was that in technical analysis. In the first section of this tutorial. we talked about the three assumptions of technical analysis. The theory behind chart patters is based on this assumption.Another important idea in technical analysis is that price is preceded by volume. or a sign of future price movements. chartists look for these Patterns to identify trading opportunities. If volume is starting to decrease in an uptrend.
on the other hand.Head And Shoulders This is one of the most popular and reliable chart patterns in technical analysis. This creates some leeway and debate as to what a good pattern looks like. we will review some of the more Popular chart paterns. and is a major reason why charting is often seen as more of an art than a science. reversal and continuation. Head and shoulders bottom. also known as inverse head and shoulders (shown on the right) is the lesser known of the two. 1. Head and shoulders is a reversal chart pattern that when formed.  . Head and shoulders top (shown on the left) is a chart pattern that is formed at the high of an upward movement and signals that the upward trend is about to end. There are two types of patterns within this area of technical analysis. A reversal pattern signals that a prior trend will reverse upon completion of the pattern. signals that a trend will continue once the pattern is complete. As you can see . These patterns can be found over charts of any timeframe. In this section.that will tell you with 100% certainty where a security is headed. there are two versions of the head and shoulders chart pattern. A continuation pattern. signals that the security is likely to move against the previous trend. but is used to signal a reversal in a downtrend.
The head and shoulders chart pattern. a head and a neckline. the left shoulder is made up of a high followed by a low. or inverse head and shoulders. In this pattern. Also. illustrates a weakening in a trend by showing the deterioration in the successive movements of the highs and lows. the neckline is a level of support or resistance. each individual head and shoulder is comprised of a high and a low. in the head and shoulders top image shown on the left side. Both of these head and shoulders patterns are similar in that there are four main parts: two shoulders. 2. Head and shoulders bottom.Cup And Handle A cup and handle chart is a bullish continuation pattern in which the upward  . For example.Head and shoulders top is shown on the left. is on the right. Remember that an upward trend is a period of successive rising highs and rising lows. therefore.
Once the price movement pushes above the resistance lines formed in the handle. These patterns are formed after a sustained trend and signal to chartists that the trend  . the upward trend can continue.Double Tops And Bottoms This chart pattern is another well-known pattern that signals a trend reversal it is considered to be one of the most reliable and is commonly used. 3. The handle follows the cup formation and is formed by a generally downward/sideways movement in the security's price. which is preceded by an upward trend.trend has paused but will continue in an upward direction once the pattern is confirmed. The price pattern forms what looks like a cup.
The pattern is created when a price movement tests support or resistance levels twice and is unable to break through. A double top pattern is shown on the left. the security enters a new trend And heads upward.is about to reverse.  . the price movement has tried to go lower twice. while a double bottom pattern is shown on the right. but has found support each time. This pattern is often used to signal intermediate and long-term trend reversals. In the case of a double bottom (shown on the right). After two unsuccessful attempts at pushing the price higher. the price movement has twice tried to move above a certain price level. After the second bounce off of the support. the trend reverses and the price heads lower.In the case of the double top pattern.
which vary in construct and implication.4. These chart patterns are considered to last anywhere from a couple of weeks to several months. This pattern is neutral in that a breakout to the upside or downside is a confirmation of a trend in that direction. In an ascending triangle. are the symmetrical triangle.Triangles Triangles are some of the most well-known chart patterns used in technical analysis. ascending and descending triangle. The three types of triangles. The symmetrical is a pattern in which two trend lines converge toward each other. the upper  .
This is generally thought of as a bullish pattern in which chartists look for an upside breakout. the lower trend line is flat and the upper trend line is descending. The middle section on  .Flag And Pennants These two short-term chart patterns are continuation patterns that are formed when there is a sharp price movement followed by a generally sideways price movement. In a descending triangle. while the bottom trend line is upward sloping. 5. In a pennant. The main difference between these price movements can be seen in the middle section of the chart pattern.trend line is flat. much like what is seen in a symmetrical triangle. This pattern is then completed upon another sharp price movement in the same direction as the move that started the trend. the middle section is characterized by converging trend lines. This is generally seen as a bearish pattern where chartists look for a downside breakout. There is little difference between a pennant and a flag. The patterns are generally thought to last from one to three weeks.
with no convergence between the trend lines.the flag pattern. The other difference is that wedges tend to form over longer periods. shows a channel pattern. usually between three and six months. In both cases. the trend is expected to continue when the price moves above the upper trend line 6. on the other hand.  . while the symmetrical triangle generally shows a sideways movement. It is similar to a symmetrical triangle except that the wedge pattern slants in an upward or downward direction.Wedge The wedge chart pattern can be either a continuation or reversal pattern.
at the most basic level. a falling wedge is bullish and a rising wedge is bearish.The fact that wedges are classified as both continuation and reversal patterns can make reading signals confusing. We have a falling wedge in which two trend lines are converging in a downward direction.Triple Tops And Bottoms Triple tops and triple bottoms are another type of reversal chart pattern in chart analysis.  . but they act in a similar fashion. These two chart patterns are formed when the price movement tests a level of support or resistance three times and is unable to break through. These are not as prevalent in charts as head and shoulders and double tops and bottoms. this signals a reversal of the prior trend. If the price was to rise above the upper trend line. However. it would form a continuation pattern. while a move below the lower trend line would signal a reversal pattern 7.
This pattern is traditionally thought to last anywhere from several Months to several years. also referred to as a saucer bottom. 8. is a long-term reversal pattern that signals a shift from a downward trend to an upward trend.Rounding Bottom A rounding bottom.Confusion can form with triple tops and bottoms during the formation of the pattern because they can look similar to other chart patterns. which could lead a chartist to enter a reversal position too soon.  . After the first two support/resistance tests are formed in the price movement. the pattern will look like a double top or bottom.
A rounding bottom chart pattern looks similar to a cup and handle pattern but without the handle. make it a difficult pattern. such as the handle in the cup and handle. SUPPORT AND RESISTANCE :-  . The long-term nature of this pattern and the lack of a confirmation trigger.
You'll often hear technical analysts talk about the ongoing battle between the bulls and the bears. is the price level that a stock or market seldom surpasses (illustrated by the Red Arrows). on the other hand. These support and resistance levels are seen as important in terms of market psychology and supply and demand.Once you understand the concept of a trend. This is revealed by the prices a security seldom moves above (resistance) or below (support). or the struggle between buyers (demand) and sellers (supply). Support is the price level through which a stock or market seldom falls (illustrated by the blue arrows). Support and resistance levels are  . the next major concept is that of support and resistance. Resistance.
making it difficult to move past this upper level as well. in which case new levels of support and resistance likely be established. It is the increased buying and selling pressure at these levels that makes them important points of support and resistance and. major psychological points as well. Round Numbers and Support and Resistance:One type of universal support and resistance that tends to be seen across a large number of securities is round numbers. When these trend lines are broken. 20.the levels at which a lot of traders are willing to buy the stock (in the case of a support) or sell it (in the case of resistance). which makes it more difficult for shares to fall below the level. On the other hand. the supply and demand and the psychology behind the stock's movements is thought to have shifted. 100 and 1. Round numbers like 10. Buyers will often purchase large amounts of stock once the price starts to fall toward a major round number such as $50. in many cases. Role Reversal  . 35. sellers start to sell off a stock as it moves toward a round number peak.000 tend be important in support and resistance levels because they often represent the major psychological turning points at which many traders will make buy or sell decisions. 50.
it will often become support. it becomes a level of support (shown by Points 3 and 4) by propping up the price and preventing it from heading lower again. For a true reversal to occur. this phenomenon is evident on the Wal-Mart Stores Inc. as you can see. its role is reversed. it is important that the price make a strong move through either the support or resistance. even with some of the most well-known companies. once the resistance is broken.  . causing the breached level to reverse its role. Many traders who begin using technical analysis find this concept hard to believe and don't realize that this phenomenon occurs rather frequently. For example. However. that level will become resistance. If the price rises above a resistance level. the dotted line is shown as a level of resistance that has prevented the price from heading higher on two previous occasions (Points 1 and 2). For example.Once a resistance or support level is broken. As the price moves past a level of support or resistance. If the price falls below a support level. it is thought that supply and demand has shifted. however.
The Importance Of Support And Resistance Support and resistance analysis is an important part of trends because it can be used to make trading decisions and identify when a trend is reversing. Notice how the role of the $51 level changes from a strong level of support to a level of resistance. a stock will have both a level of support and a level of resistance and will trade in this range as it bounces between these levels. As long as the price of the share remains between these levels of support and resistance. the trend is  .(WMT) chart between 2003 and 2006. In almost every case. Support and resistance levels both test and confirm trends and need to be monitored by anyone who uses technical analysis.
do not place the trade at the support level. the price never actually reaches the whole number. if you are placing stops or short selling. set up your trade price at or below the level of support. On the other hand. Summary of charts  . It is important to note. place it above the support level. if prices moved above the resistance levels of an upward trending channel. it is important that you follow this simple rule: do not place orders directly at the support or resistance level. that a break beyond a level of support or resistance does not always have to be a reversal. So if you're bullish on a stock that is moving toward an important support level. For example. not reversed.likely to continue. but flirts with it instead. as the area around them is usually marked by a lot of volatility. Traders should avoid placing orders at these major points. This means that the price appreciation is expected to be faster than it was in the channel. the trend have accelerated. This is because in many cases. Being aware of these important support and resistance points should affect the way that you trade a stock. If you feel confident about making a trade near a support or resistance level. however. Instead. but within a few points.
 . This can make it difficult for traders to get an idea of a security's overall trend. One simple method traders use to combat this is to apply moving averages. the price movement is smoothed out.MOVING AVERAGES :Most chart patterns show a lot of variation in price movement. A moving average is the average price of a security over a set amount of time. By plotting a security's average price. traders are better able to identify the true trend and increase the probability that it will work in their favor. Once the day-to-day fluctuations are removed.
linear and exponential.Types Of Moving Averages:There are a number of different types of moving averages that vary in the way they are calculated. The calculations only differ in regards to the weighting that they place on the price data. As you can see in Figure 1. a trader is able to make the average less responsive to changing prices by increasing the number of periods used in the calculation. the last 10 closing prices are added together and then divided by 10. in a 10-day moving average. It simply takes the sum of all of the past closing prices over the time period and divides the result by the number of prices used in the calculation. For example. Simple Moving Average (SMA) This is the most common method used to calculate the moving average of prices. but how each average is interpreted remains the same. 1. Increasing the number of time periods in the calculation is one of the best ways to gauge the  . shifting from equal weighting of each price point to more weight being placed on recent data. The three most common types of moving averages are simple.
strength of the long-term trend and the likelihood that it will reverse. Many individuals argue that the usefulness of this type of average is limited because each point in the data series has the same impact on the result  .
For example. 3. Linear Weighted Average This moving average indicator is the least common out of the three and is used to address the problem of the equal weighting. This type of criticism has been one of the main factors leading to the invention of other forms of moving averages. These numbers are then added together and divided by the sum of the multipliers. yesterday's by four and so on until the first day in the period range is reached.regardless of where it occurs in the sequence. therefore. it should also have a higher weighting. 2. today's closing price is multiplied by five. in a five-day linear weighted average. Exponential Moving Average (EMA) This moving average calculation uses a smoothing factor to place a higher weight on recent data points and is regarded as much more efficient than the linear weighted average. Having an understanding of the calculation  . The critics argue that the most recent data is more important and. The linear weighted moving average is calculated by taking the sum of all the closing prices over a certain time period and multiplying them by the position of the data point and then dividing by the sum of the number of periods.
Major Uses of Moving Averages Moving averages are used to identify current trends and trend reversals as well as to set up support and resistance levels. When a moving average is heading upward and the price is above it. This slight difference doesn’t seem like much. A 15-period EMA raises and falls faster than a 15-period SMA. but it is an important factor to be aware of since it can affect returns. The most important thing to remember about the exponential moving average is that it is more responsive to new information relative to the simple moving average. Moving averages can be used to quickly identify whether a security is moving in an uptrend or a downtrend depending on the direction of the moving average.is not generally required for most traders because most charting packages do the calculation for you. This responsiveness is one of the key factors of why this is the moving average of choice among many technical traders. the security is in  .
When a short-term average is above a longer-term average. when the price of a security that was in an uptrend falls below a 50-period moving average. For example. On the other hand.  .an uptrend. a long-term average above a shorter-term average signals a downward movement in the trend. The first common signal is when the price moves through an important moving average. the trend is up. Conversely. Moving average trend reversals are formed in two main ways: when the price moves through a moving average and when it moves through moving average crossovers. a downward sloping moving average with the price below can be used to signal a downtrend. Another method of determining momentum is to look at the order of a pair of moving averages. it is a sign that the uptrend may be reversing.
if the 15-day moving average crosses above the 50-day moving average.  . For example.The other signal of a trend reversal is when one moving average crosses through another. it is a positive sign that the price will start to increase.
for example). if the price breaks through the 200-day moving average in a downward direction. for example 15 and 35. It is not uncommon to see a stock that has been falling stop its decline and reverse direction once it hits the support of a major moving average. Another major way moving averages are used is to identify support and resistance levels.If the periods used in the calculation are relatively short. For example. when two averages with relatively long time frames cross over (50 and 200. A move through a major moving average is often used as a signal by technical traders that the trend is reversing. this is used to suggest a long-term shift in trend. this could signal a short-term trend reversal. it is a signal that the uptrend is reversing.  . On the other hand.
a 100-day average of a half a year. They provide useful support and resistance points and are very easy to use. Moving averages help technical traders smooth out some of the noise that is found in day-to-day price movements. In the next section.Moving averages are a powerful tool for analyzing the trend in a security. 50-day. 20-day and 10-day. 100-day. through charts and averages. we'll look at some other techniques used to confirm price movement and patterns. The most common time frames that are used when creating moving averages are the 200-day. The 200-day average is thought to be a good measure of a trading year.  . giving traders a clearer view of the price trend. a 50-day average of a quarter of a year. So far we have been focused on price movement. a 20-day average of a month And 10 – day average of two weeks.
it shows that the security is being accumulated. When a divergence does occur. The indicator is based on the premise that the more volume that accompanies a price move. For  . Both of these indicators attempt to confirm changes in prices by comparing the volume associated with prices. Divergences between the Accumulation/Distribution and the security's price imply a change is imminent. as most of the volume is associated with downward price movement. it shows that the security is being distributed.Technical Indicators ACCUMULATION/DISTRIBUTION Overview The Accumulation/Distribution is a momentum indicator that associates changes in price and volume. the more significant the price move. prices usually change to confirm the Accumulation/Distribution. When the Accumulation/Distribution moves up. as most of the volume is associated with upward price movement. Interpretation The Accumulation/Distribution is really a variation of the more popular On Balance Volume indicator. When the indicator moves down.
The difference between Bollinger Bands and envelopes is envelopes are plotted at a fixed percentage above and below a moving average.and lower-band. The distinctive characteristic of Bollinger Bands is that the spacing between the bands varies based on the volatility of the prices. prices will probably reverse. Interpretation Bollinger Bands are usually displayed on top of security prices. BOLLINGER BANDS Overview Bollinger Bands are similar to moving average envelopes. whereas Bollinger Bands are plotted at standard deviation levels above and below a moving average. These comments refer to bands displayed on prices. the bands are self-adjusting: widening during volatile markets and contracting during calmer periods. During periods of extreme  . if the indicator is moving up and the security's price is going down. Bollinger Bands were created by John Bollinger. As with moving average envelopes.example. Since standard deviation is a measure of volatility. the basic interpretation of Bollinger Bands is that prices tend to stay within the upper. but they can be displayed on an indicator.
as volatility lessens. • When prices move outside the bands. a continuation of the current trend is implied. • A move that originates at one band tends to go all the way to the other band. the bands widen to become more forgiving.e. the bands narrow to contain prices. • Sharp price changes tend to occur after the bands tighten. low volatility).price changes (i. High values show that prices are  .. During periods of stagnant pricing (i..e. • Bottoms and tops made outside the bands followed by bottoms and tops made inside the bands call for reversals in the trend. COMMODITY CHANNEL INDEX:Overview The Commodity Channel Index ("CCI") measures the variation of a security's price from its statistical mean. This observation is useful when projecting price targets. high volatility). following are characteristics of Bollinger Bands.
Interpretation There are two basic methods of interpreting the CCI: looking for divergences and as an overbought/oversold indicator. • The CCI typically oscillates between 100. To use the CCI as an overbought/oversold indicator. • A divergence occurs when the security's prices are making new highs while the CCI is failing to surpass its previous highs.unusually high compared to average prices whereas low values indicate that prices are unusually low. readings above +100 imply an overbought condition (and a pending price correction) while readings below -100 imply an oversold condition (and a pending rally). the CCI can be used effectively on any type of security. not just commodities. Contrary to its name. This classic divergence is usually followed by a correction in the security's price. ENVELOPES (TRADING BANDS) Overview  .
A sell signal is generated when the security reaches the upper band whereas a buy signal is generated at the lower band. One moving average is shifted upward and the second moving average is shifted downward. the upper and lower bands). Interpretation Envelopes define the upper and lower boundaries of a security's normal trading range. The MACD was developed by Gerald Appel. This is similar to the interpretation of Bollinger Bands. The logic behind envelopes is that overzealous buyers and sellers push the price to the extremes (i. A 9-day exponential moving average.An envelope is comprised of two moving averages. at which point the prices often stabilize by moving to more realistic levels. the larger the percentage.e. publisher of Systems and Forecasts. MACD Overview The MACD ("Moving Average Convergence/Divergence") is a trend following momentum indicator that shows the relationship between two moving averages of prices.. The optimum percentage shift depends on the volatility of the security--the more volatile. The MACD is the difference between a 26-day and 12-day exponential moving average. called the "signal" (or "trigger") line is plotted on top of the MACD  .
15%. a buy signal occurs when the MACD rises above its signal line. A bearish divergence occurs when the  . Divergences A indication that an end to the current trend may be near occurs when the MACD diverges from the security. and divergences. and 20% respectively. overbought/oversold conditions. he refers to these three moving averages as 7. Crossovers The basic MACD trading rule is to sell when the MACD falls below its signal line.5%.. the MACD rises). it is likely that the security price is overextending and will soon return to more realistic levels. There are three popular ways to use the MACD: crossovers. Similarly. Overbought/Oversold Conditions The MACD is also useful as an overbought/oversold indicator.e. (Appel specifies exponential moving averages as percentages. Thus. MACD overbought and oversold conditions exist vary from security to security. When the shorter moving average pulls away dramatically from the longer moving average (i.to show buy/sell opportunities. It is also popular to buy/sell when the MACD goes above/below zero.) Interpretation The MACD proves most effective in wide-swinging trading markets.
A bullish divergence occurs when the MACD is making new highs while prices fail to reach new highs.MACD is making new lows while prices fail to reach new lows. ON BALANCE VOLUME Overview  . the Price ROC indicator displays the rate-of-change as a percentage whereas the Momentum indicator displays the rate-of-change as a ratio. Both of these divergences are most significant when they occur at relatively overbought/oversold levels. Both indicators display the rate-of-change of a security's price. Interpretation The interpretation of the Momentum indicator is identical to the interpretation of the Price ROC. However. MOMENTUM Overview The Momentum indicator measures the amount that a security's price has changed over a given time span.
and 26-day moving averages. The Price Oscillator is almost identical to the MACD. It shows if volume is flowing into or out of a security. When the security closes higher than the previous close. When the security closes lower than the previous close. (The MACD always uses 12. and always expresses the difference in points.) Interpretation Moving average analysis typically generates buy signals when a short-term moving average (or the securitys price) rises above a longer-term moving  . except that the Price Oscillator can use any two userspecified moving averages.On Balance Volume ("OBV") is a momentum indicator that relates volume to price change. The difference between the moving averages can be expressed in either points or percentages. PRICE OSCILLATOR Overview The Price Oscillator displays the difference between two moving averages of a securitys price. all of the day's volume is considered up-volume. all of the day's volume is considered down-volume. On Balance Volume was developed by Joe Granville Interpretation On Balance Volume is a running total of volume.
average. periods where prices move sideways in a trading range). sell signals are generated when a shorter-term moving average (or the security’s price) falls below a longer-term moving average. The analysis of volume is a basic yet very important element of technical analysis. hour. Interpretation Low volume levels are characteristic of the indecisive expectations that typically occur during consolidation periods (i.. Volume provides clues as to the intensity of a given price move. month. The Price Oscillator illustrates the cyclical and often profitable signals generated by these one.or two-moving-average systems. day.e. Conversely. High volume levels are also very common at the beginning of new trends (i.. High volume levels are characteristic of market tops when there is a strong consensus that prices will move higher.  .g. volume will often increase due to panic-driven selling. week. Just before market bottoms.e.. when prices break out of a trading range). Low volume also often occurs during the indecisive period during market bottoms. etc). VOLUME Overview Volume is simply the number of shares (or contracts) traded during a specified time frame (e.
The difference between the moving averages can be expressed in either points or percentages. if volume increases  . it signifies that the shorter-term volume moving average has risen above the longerterm volume moving average.e. One common belief is that rising prices coupled with increased volume. Interpretation We can use the difference between two moving averages of volume to determine if the overall volume trend is increasing or decreasing. When the Volume Oscillator rises above zero. A healthy downtrend usually has higher volume on the downward legs of the trend and lower volume on the upward (corrective) legs. VOLUME OSCILLATOR Overview The Volume Oscillator displays the difference between two moving averages of a security's volume. and lower volume on the downward (corrective) legs. and falling prices coupled with decreased volume. is bullish.. that the short-term volume trend is higher (i.Volume can help determine the health of an existing trend. more volume) than the longer-term volume trend. and thus. There are many ways to interpret changes in volume trends. A healthy up-trend should have higher volume on the upward legs of the trend. Conversely.
Rising prices coupled with increased volume signifies increased upside participation (more buyers) that should lead to a continued move. TECHNICAL ANALYSIS OF A STOCK:-  . and volume decreases when prices rise. falling prices coupled with increased volume (more sellers) signifies decreased upside participation. Conversely. the market is showing signs of underlying weakness. The theory behind this is straight forward.when prices fall.
POWERGRID. is engaged in power transmission business with the mandate for planning. is one of the largest transmission utilities in the world. a Navratna Public Sector Enterprise.POWERGRID.500 MVA. 220 kV & 132 kV EHVAC & +500 kV HVDC levels and 122 sub-stations with transformation capacity of about 81.200 MVA.POWERGRID has a pan India presence with around 71.POWERGRID wheels about 45% of the total power generated in the country on its transmission network.POWERGRID has also diversified into Telecom business and established a telecom network of more than 20. coordination. 400 kV.600 ckt kms of transmission lines at 800/765 kV. as on July 2009.POWERGRID has consistently maintained the transmission system availability over 99% which is at par with the International Utilities.500 Circuit Kms of Transmission network and 120 nos. owns and operates about 71. This gigantic transmission network. the Central Transmission Utility (CTU) of the country.000 Kms across the country. spread over  . supervision and control over complete inter-State transmission system. POWERGRID. of EHVAC & HVDC substations with a total transformation capacity of 79.
00% Price’s of Power Grid Month Oct’2008 Nov’2008 Dec’2008 Open 92. is consistently maintained at an availability of over 99% through deployment of state-of-the-art Operation & Maintenance techniques which are at par with global standards.40% 7.05 89.00% 0.90 74.90 74.45 Close 89.36% 6.24% 0. Share Holding Patterns Promoter (Ind) Institution Non-Institution Custodians Promoter (For) 86.05  .45 75.length and breadth of the country.
00 95.35 85.85 119.15 93.85 119.00 95.75 117.05 91.50 108.45 Technical Analysis of Power Grid: Accumulation/Distribution:  .65 108.05 91.Jan’2009 Feb’2009 Mar’2009 Apr’2009 May’2009 Jun’2009 July’2009 Aug’2009 Sept’2009 75.65 83.35 85.75 117.50 108.15 93.05 83.
But for now looking at this indicator is showing downward trend in the prices.This chart is showing the pattern of accumulation/distribution with the price pattern of Power Grid and we can easily see that the indicator is following the same pattern as the price of power grid. Bollinger Bands  . Because as an when price move to 10m in indicator the price tend to fall and there is one another reason that is prices are going down and indicator is going up that also shows the negative trend in the prices.
But looking at the current situation the script shows a selling signal but as the prices reaches below the bollinger band the prices would again tend to move upside but it all depends on the santiments and situation which would be prevailing in the market at that point of time.  .The chart shows that prices are moving within bollinger band and trading days where this script is very volatile and at some point of time its less volatile. During the Oct – Nov 2008 and May – June 2009 the Script seems to be more trading months. But for now one shold sell the particular script to gain a profit of about 5 – 10% in near future.
Commodity Channel Index: The chart shows that the CCI is moving in line with the prices and the as prices goes up the CCI also goes up and vice versa.  . if we are looking for the current trend its moving downward for short run but it still bullish for medium term. By the chart.
Envelope: Currently stock is showing that prices will go down but as it will touch its lower envelope band its will move upward MACD: .
Currently looking at the chart the MACD has crossed the EMA 9 from the upside and this is a kind of negative sign and this negativity is going to be there until the MACD move above the EMA cutting it from below Momentum: .
Earlier chart has shown some indication about sell and buy and they come true as it can be seen from the chart itself. Now the chart is showing selling indication for intraday basis and for short term its good when indicator goes to the lower level as it has made earlier  .
Moving Average:- Looking at the chart one can easily interpret that moving average is roaming around the price but still giving some indication about price movement for  .
It shows a downturn for short term period and if price cross moving from below and goes above the moving average that would be the best time to buy the stock. On Balance Volume:-  . Sometime it shows indication of sale and buy at given point of time Looking forfuture price we cannot easily interpret themovement at thi spoint of time but still some indication of sale is shown in the graph as the price of share take support at the 15 days moving average and futher going down.near future.
Currently the indicator is making low high than the previous high and its indicates the downturn in intraday basis. But as it breaks the cuurent trend prices tend to move upside with a bang.
Currently the share prices according to the indicator is trading high and it gave a signal of selling share prices fro short term and go long for medium term
Current trend of volume shows that price tend to move upward but the rally will not exceed 2-3 days. After that we need to see the chart again because the indicator is not so trustworthy as others
com  .googlefinance.nseindia.com www. BIBLIOGRAPHY www.com www.bseindia.yahoofinance.com www.moneycontrol.com www.The chart shows that price will tend to move downside in short term but on intraday basis it will move upside.technicalanalysis.com www.
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