Best Ways to Do Investment Using Technical Analysis

Technical analysis is an easy and convenient way to make better investment decisions based on numbers, data, graphs, and prices. Many investors, traders, and analysts have been using technical analysis extensively for decades. Choosing the best technical analysis gives us a broader way to choose the right pricing and volume for better investment opportunities. 

Investing is easy, but investing at the right time, at the right price, and at the right volume is not easy. While investing, everybody needs initial assistance. This assistance can be fulfilled through technical analysis. There are several easy ways to conduct technical analysis for better investment. 

What is the need for technical analysis to make better investment decisions?

Nowadays everybody wants to invest their money because investment is an easy way to grow your wealth. But only a few of them have the proper idea and knowledge for the right investment at the right place.

Objectified knowledge

• The different methods of technical analysis give objectified and qualified knowledge for investment. It can save us from the falling market.

Risk management

• Investment always comes with the term “Risk”, if you are investing you need to be prepared for risk or should have the proper risk management criteria.  However technical analysis reduces our chances of risks and makes us proficient in risk management.

Awareness for market 

• Technical analysis provides us with awareness and knowledge about the investors already investing in the market. This information can help you understand the psychology of investors. 

Information on technical aspects

• Technical analysis gives us brief and elaborated information about technical aspects of marketing and investment. 

What are the Different Ways of Technical Analysis?

There are various patterns of studying technical analysis that can let us have better investment decisions. The following points are major ways of technical analysis. The following points are described  as technical analysis patterns-

Head & Shoulders

Head and shoulders is a technical term, it is used when the price rises up to head from the bottom but declines again at base.  Then again the price rises to the head, more than last rise and falls back again. And again the price rises to the same as the first rise and falls back to the base again. 

Double top and double bottom

Double top patterns occur when the graph moves upward and downward shaping “M” . Generally double top occurs after a bullies rally. In the double bottom, the graph shows a downward upward formation in a “W” shape. 

Triangle 

• The triangle pattern can be found in three terms, ascending triangle, descending triangle and symmetric triangle. 
• The ascending triangle moves forward in a bullish way and shapes the triangle at the end. 
• The descending triangle moves in a bearish way and shapes the triangle in the end and in a symmetric triangle the upper line falls downward and the lower lines fall upward. 

Flag  

• This shape is formed when there is a bit of rise and a bit of fall within the limited price then it seems like a flag on a flagpole. 
• The flag-shaped pattern is an important analysis to observe the investment statistics.

Pennant

• It is similar to a flag structure but creates a flagpole shape for the large movement. 

Conclusion 

In the era of the digital world, everyone is shifting forward for the sake of growth and Investing is an interesting way to have financial growth potentially. But investing is not everyone's piece of cake. To be an investor you must know the circumstances and must have the proper knowledge and guidance. 

There can be many possibilities so just to overcome the circumstances and possibilities you must have technical analysis for better investment decisions. And for that, My Investing Mantra is the best option available.