How does Technical Analysis Work?

  Technical analysis is the study of demand and supply, price movements, historical prices and volumes. If price goes up with increased volumes, technical chart shows at that time people in the market thought that the price of the stock might go up. It gives visual representation of the market movements to the analyst which is very easy to understand. Line charts or candlestick charts are used in technical analysis system. One candle show Open, High, Low and close of the stock for that particular time frame. 5 min to 15 min time frames gives best result in intraday technical chart. 20 mins to 1 hr. Charts are good for delivery trading. Candle chart moves according to market movements in live technical chart.
   Everyone wants to make profit from the market. The simple key of making profit is study of technical analysis & fundament analysis. In fundament analysis one has to study company’s balance sheet, profit and loss a/c, earning per shares orders in hand, etc. Study of current data v/s past performance. In technical analysis we study historical price data as well as current market data to see what movement we can see in future. Technical analysis graph gives clear direction of Bullish, Bearish and sideways market.