Pivot Points for Support and Resistance of Share Price

What is Pivot Points ?

Pivot chart is technical indicator which shows support or resistance of shares. Here support means point of level from where share price could stable for a while and resistance also same meaning but difference between them is that support occurs after decline and resistance occurs after rise in the share price.

Basically Pivot points automatically calculated on the basis of last day movement. It is dependent on Last day High, Law, Open and Close. For inserting Pivot Point go to studies of your menu bar 
than search and insert. 

In this picture you can see there is Black line that is pivot points and there are six lines also. Three lines above the pivot points and three lines down the pivot points. The lines which are above the pivot points are called Resistance. Resistance lines named as R1, R2, and R3 on the basis of there nearness to pivot points R1 is first dark red line.

Three lines which are down the pivot points are called Support lines named as S1, S2, and S3.

Dark green is S1 line.

Never take Position when share price is moving around  Support and resistance always take position when share price cross the support and resistance.

Thank you for reading Learn trading blog.

Top 4 Indicators which helps in a trading

There are so many indicators available in technical analysis so now the question arise that which indicators should use for trading. There are some i am suggesting you can choose as per your preference. Indicators are basically classified as there use some are for trend analysis, some are for support and resistance and some are volume.

Candle chart

This indicator mostly used for technical analysis. It shows about trend, volume, open price, close price, high price, low price and it shows the pattern for analysing stocks you need to focused for recognising pattern of Candle sticks.

For more details click on this link http://learnbasictrading.blogspot.in/2018/03/candlesticks-chart.html

 MACD

One of the best indicator for trend analysis olf stocks. Macd is easy to understand. MACD stands for Moving Average Convergence Divergence. 

For more detail click on this link http://learnbasictrading.blogspot.in/2018/04/macd-for-shares-buying-and-trend.html

RSI

RSI is stands for Relative Strength Index. It is one of the best indicator in technical analysis it helps in where to buy and where to sell of Shares.

For more detail click on this link http://learnbasictrading.blogspot.in/2018/04/

Pivot chart

Pivot chart is technical indicator which shows support or resistance of shares. Here support means point of level from where share price could stable for a while and resistance also same meaning but difference between them is that support occurs after decline and resistance occurs after rise in the share price.

how to analyse pivot chart i will upload early.

Thank you for reading this blog.

RSI for finding overbought and oversold situation in shares

RSI is stands for Relative Strength Index. It is one of the best indicator in technical analysis it helps in where to buy and where to sell of Shares.

Basically RSI oscillates between 0 to 100. When it cross above 70 that means share is overbought it can go down and if RSI cross below 30 that means oversold it can go up.





















Here in this picture i select by rectangle the overbought and oversold situation which are above 70 are overbought and which are below 30 are oversold.

MACD for Shares buying and trend analysis

What is MACD ? 

MACD is indicator for technical analysis it helps in identifying trend of market. MACD stands for Moving Average Convergence Divergence. 

How to use MACD ?

Basically Macd use two Moving average line and one centre line. Let's look in picture here one is black line one is red line whenever black line cross red line toward downward the share price goes down that means down trand. Whenever black line cross red line toward upward shares price goes up that means upward. 

If black line cross red line and also cross center line it more confirmed the trand.

Is portfolio helps in a risk reduction?

Don't put all your eggs in one basket

Everyone said that don't invest in one investment vehicle or in one type shares there should be a well distribution of money in investment. Now question arise is how risk reduce in portfolio.

Let's Say Mr. A and Mr. B two best friends when teacher get out one friend another one also goes out with him now both missed the class lecture. In this example both have positive relation.

Just like in share if you invested  in one type of share or one investment vehicle than your portfolio will more risky because you invested all money in two shares but with positive relation.

Now let's say Mr. A and Mr. B are not a good friends but they know each other if teacher get out one another will take class and he will teach him after class. Just like in share and gold if we  invested in both than, if shares price  are down than gold will be up which will reduce your  risk.

Mutual Fund vs ETF(Exchange Traded Fund)

Mutual fund

People combine there money for investment in stocks(Shares, Bonds, Debenture etc.) which is done by professional that Pool of money is called mutual fund.

Creation            Mutual fund is created by anyone who qualify the regulatory requirements

Charges             Maintenance charges, Operational charges etc.

Initial margin     Initial margin required but not so much like ₹500

SIP                     Here you can make SIP(Systematic Investment Plan) it makes habit of investment

Listed               It is not listed on stock exchange

Counseling      Mutual fund professional provide counseling for best investment

NAV                 Net asset value is calculated end of the day 

ETF(Exchange Traded Fund)

Exchange traded fund are fund which are listed in stock exchange. It can be Gold ETF's, Index ETF's,  and many more.

Basically it is started for trading in Index.

Creation              ETF's are created Authorized Participants(AP's) They have high degree of buying                                power

Charges               Charges are very low than Mutual fund

Initial margin       No initial margin required

SIP                       There us no any such type of SIP

Listed                   It is listed on stock exchange 

Counseling           No one provide counseling here  

Value                    Value shows just like Stocks value  

   

FUNDAMENTAL ANALYSIS VS TECHNICAL ANALYSIS

Fundamental analysis means analyzing the company that company is fundamentally strong for profit
generating in future. There are some factor which are analyzed like Profit earning ratio, Profit consistency, Liability against Assets, etc.

Basically professional use fundamental analysis to select share and it is required to know how is company fundamentally.

In Fundamental analysis some key factor use to analyzing shares whereas In Technical analysis some Indicators are use to analyze past data of share.

In fundamental analysis value comes after analyzing the company's financial structure could be different from value comes after technical analysis.

Now question arise which analysis should follow, Use fundamental analysis to select the share and use technical analysis for finding the trend of share.