Understanding technical analysis: A conceptual framework

Technical Analysis is a study of the stock market relating to factors such as short term and long term trend. These stock market indicators would help the investor to identify major market turning points. Moving averages and moving averages crossover is a significant technical analysis tool on any index or stock which helps to understand the price behavior of the shares, the signals given by them and the major turning points of the market price. Any investor or trader must certainly consider technical analysis as a tool whether to buy the stock at a particular point of time though it is fundamentally strong. This module studies application of technical analysis tools on selected index/stocks and interpret on whether to buy or sell them. This in turn would help investors to identify the current trend and risks involved with the scrip on par with market. The study is purely based on secondary sources which includes the historical data available from the website. For the purpose of analysis, Simple Moving average, moving average crossover is used for the analysis to know if the index/stock trend.