Stock Indices Analysis Live Charts

Indices Analysis Course Tutorial

Stock Indices Analysis is the science and art of forecasting future price movement based on historical prices combined with technical indicators. Stock Indices Analysis Course - This Stock Indices Analysis study often interprets the price data by studying a stock chart and looks for stock patterns and stock signals for buying & selling.

The history & origin of this Stock Indices Analysis method dates back several hundred years to Japanese & Arabian markets, Stock Indices Analysis involves using math manipulation of price data to optimize buy & sell points. Use of this type of Stock Indices Analysis in modern computerized programs has become increasingly popular.

The information which the is studied and assessed is price movement so as to plan an entry or exit into a stock trade. The goal is to determine how the trading market is trending.

Stock Indices Analysis

This Stock Indices Analysis - studies the supply & demand of a stock indices instrument in an attempt to determine in what direction the price will continue to move in.

While stock technical analysis deals with price and stock indicators it is just a measure of investor sentiment.

What to Look For

Find the Indices Trend

The motto of stock technical analysis is: "the stock trend is your friend." Finding the prevailing stock trend will help you become aware of the overall direction and offer you better stock indices trading opportunities - especially when shorter term stocks market movements give conflicting signals.

Daily stock charts are more ideally suited for identifying long-term stock trends. Once you have found the overall direction then you generally open buy or sell orders in that direction.

Trend or Range

No matter what price is doing, it usually falls into one of those 2 categories. If the stocks price is moving in a setup or in one direction, you can use stock trend lines to analyze where the price should go. If the stock market seems to be bouncing back and forth in a range, you can use support and resistance lines to make note of where to open buy or sell trading orders.

One of the greatest goals of Stock Indices Analysis studies & techniques in the trading market is to determine whether a given trading instrument will move in a stock trend in a certain direction, or if stocks market will continue moving sideways and remain range-bound. The most common Stock Indices Analysis method to determine this is to draw stock trend lines which are used by traders to determine whether or not the current direction of the market will continue. Many investors avoid trading in a range-bound stock market and only buy or sell stock indices when there is a stock trend since this makes trading more predictable.

For stock technical analysts the most important stock indices tool is the chart. The purpose of a stock chart is to provide a visual representation of price quotes (drawn on the y-axis) against time (drawn on the x-axis) for stock indices instrument, this stock chart is used as a basis for making predictions of the future price direction.

Trendlines

The direction of these trend lines determines the stock market direction. A trend line drawn moving upward represents a bullish market and a stock trend line drawn moving downward represents a bearish market.

Support & Resistance - Stock Indices Analysis

Support & resistance levels are points on a stock chart that tend to act as boundaries. A support zone is usually the trough or low point on a stock chart whereas a resistance area is the high or the peak point on a stock chart. These support and resistance areas are used as buy/sell points.

Moving Averages - Stock Indices Analysis

Moving averages stock indicator are used to show the average price of a stock indices instrument over a given period of time. Moving Averages indicators are called moving because they reflect the latest price average in the movement of the prices.

Indices Strategies

To be a successful stock trader you need to create a stock indices strategy. There is not one set Stock Indices Trading strategy that is good for all stock traders. But Rather, each trader needs to develop their own stock index strategy.

Stock Indices Analysis is the most widely used strategy in the stock market and is used to decide the entry and exit points.

Market movements have identifiable repeating price patterns that have been studied over many years providing a thorough understanding of these stock market trends and how they can be used to form the basis of a good trading stock index strategy.

There are many Stock Indices Analysis tools available provided to facilitate this study

The beginner stock trader is advised to study each Stock Indices Analysis tool separately to get working knowledge of the concepts & application for each Stock Indices Analysis study. Once you understand one Stock Indices Analysis method, keep on using it while studying others. Each Stock Indices Analysis tool tends to combine well when used with other Stock Indices Analysis Tools.

Support and resistance levels are also used in many stock index strategies. Support is defined as the level that is repeatedly seen as the bottom (floor) - when the price reaches this level it tends to bounce. Resistance level is the ceiling, the upper boundary (ceiling) that a stock indices instrument rarely trades above.

Support and resistance levels are valid for a period of time, until they are broken, When the stock market breaks through these support and resistance levels, the price is expected to continue in that direction. For example, if the stock market rises above the previous resistance level, it is seen as a bullish signal and the bullish movement should continue upwards.

Longer stock chart time frames establish more stronger support and resistance levels. Traders can use these support and resistance levels to determine when to enter a trade position or exit an open position.

Moving averages is another common technical indicator used as to create stock index strategies. Moving averages try to smooth out short term stocks market price fluctuations giving a clearer picture of the price movements and trends. Traders can draw SMA to determine price movement tendency to move up or down - trend.

If price crosses above the simple moving average then it will keep on moving up.

If price crosses below the SMA then it will keep moving down

These are examples of stock indices strategies that can be used individually or combined.

Stock Traders use two or more Stock Indices Analysis studies to determine when to open an order when both Stock Indices Analysis indicators support the same direction. If several Stock Indices Analysis indicators show that the stock market is moving towards a particular direction the a stocks trader can trade with more reassurance than when he is only relying on one Stock Indices Analysis indicator.

Fundamental analysis should also be used together to reinforce Stock Indices Analysis findings, or vice versa. A trader should ideally take into account two or more Stock Indices Analysis indicators when developing a Stock Indices Strategy.

Every stock indices strategy should provide clear guidelines about when to enter and exit a buy or sell stock trade position, how much loss can be accepted if the stock market moves in the other direction and how much profit is expected. Following these simple Stock Indices Analysis guidelines can help you become successful in stock indices.