Let us discuss some of the very basics of intraday technical analysis that can help you in getting started and making a mind about intraday trading. This technical analysis of stocks can make or break how you end up as a trader in your overall stock market journey.
Mind you, intraday trading is one of the most lucrative and at the same time, a relatively riskier proposition, especially for beginner traders.
The first thing to discuss intraday technical analysis is the assumptions on the basis of which we believe in intraday technical analysis and use it in earning returns from the stock market.
The first assumption is that the current stock price and price of the index already reflect all the information that is required for deciding the price. It includes all the information that is publicly available as well as information that has not yet been made public.
The second assumptionis that by looking at the patterns of past stock and index prices, one can accurately predict the future price of the stock or index. And the last assumption is that history repeats itself.
A support level is that level at which the bullish forces start to overpower the already existing bearish forces which have been acting for some time.
After reaching this level, the stock or index prices start to rise up and show a trend reversal if it is accompanied by large volumes.
Similarly, the resistance level is that level at which the bearish forces start to overpower the already existing bullish forces which have been acting for some time.
After reaching this level, the stock or index prices start to fall down and show a trend reversal if it is accompanied by large volumes.
Then, you need to know about the major prices which are of utmost importance in intraday technical analysis. Open price, close price, high price and low prices are the prices that help in making technical charts.
Then, there are different kinds of technical as well as intraday indicators and oscillators with the help of which one can generate buy as well as sell signals while the trading is being done in a live share market.
Intraday Technical Analysis Courses
If you want to learn intraday trading and in a sense, in detail about intraday technical analysis and about the technical indicator and oscillators, you should consider taking an online stock market course.