Why Technical Analysis is important in Share Trading

Technical analysis is a term used to define the process of anticipating the future price movements based on past price movements. The Purpose of technical analysis is to help the investor take a right investment decision. The investors can act on the Share Market Tips from expert advisors.

Technical analysis is a method of evaluating price moments and market activities. Traders should know about market trends. Market can only do three things--it can go up, it can go down and it can go sideways. A trader needs to know the trend directions.

The two common methods generally used in stock market are fundamental analysis and technical analysis. Both are important for traders. Technical analysis involves only the price movements of the
stock in the market. Technical analysis works as the study of demand and supply and the direction of the past and future price. An investor can use it to make better investment in the stock market.

Every trader wants make a good amount of profit in the short term. Short term traders have to make the decisions quickly and in limited period of time.

Advantages of Technical Analysis
1. Provides all the current information
Technical analysis provides current price that reflects all current information about the assets. This make trading very simple, with technical analysis we focused on the price charts.

2. Prices move in trends
It would be very hard to make money in short term trading. Technical analysis provides you tools for doing just that.

3. History repeats
Technical Analysis is based on common patterns, finding the patterns again and using them to trade. History repeats in a General way.

4. Timing
A big advantage of Technical Analysis is it provides you exact time to trade. Technical analysis provides great time for a great trade.

5. Any time-frame or market
Technical analysis is a large field as you can apply it to different types of market. All the Market trading is based on human behavior. Technical analysis serves different types of market.

Technical analysis is a tool for short term traders. Technical analysis is based on past price movements. Technical analysis is used to analyze volume and price for a period of time. It is more
useful for short term analysis. Technical Analysts use the charts for price movements. If you want to excel in short term trading, you must have basic knowledge like chart, pattern, risk management,

market structure, etc. If a trader perfectly knows about fundamental analysis and technical analysis, he easily faces the risk and search the solution.

Technical analysis is one of the most important analyses, done by the investors before purchasing a stock. It is a very useful tool for trading strategy that helps you make money. Technical analysis helps
you understand that stock performance and decide when to enter and when to exit.

Fundamental analysis and technical analysis both are important in stock market. If trader want long term investment he choose fundamental analysis and if short term investment he choose technical
analysis. Both Fundamental analysis and Technical analysis are used to generate Share Market Tips for short term as well as long term.