Technical Analysis of stocks

Market moves on speculations and technical analysis, there is no way to study the speculations than to be a regular watcher of news and sites at net but there are some way to analyze a stock technically.
Technical analysis of a stock is based on the following

ATR (Average True Range

ATR is how much a stock moves in a day. It can be calculated from the previous close to the next day’s high or low. Or it can be calculated from the range form high to low in a single day. Whichever is greater is the “true range.”

MACD (Moving Average Convergence or Divergence)

It is a momentum indicator showing the momentum which is indicated for up ward move or downward trend by relating the average of price movement of the stock.

The MACD is the difference between a 26-day and 12-day exponential moving average.
The MACD on 9 days movement indicate a buy or sell opportunities.

RSI (Relative Strength Index)

By seeing the history of a stock and present performance the strength is analyzed.
50 is the index and 30-70 indicates the flattish movement or constant movement while above 70 indicates excess buying and below 30 indicates excess selling.

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