Trick To Know Rising Price of Stocks, When You Have Entered the Trade
Generally, traders have the question that how they will get to know that the prices of stocks have really gone up? In order to solve this issue there are many strategies and technical indicators, which hints the price hike and lowering of the prices. There are price charts in stock trading which represents the previous prices of the stocks over time. There are two scales in the chart representation. Y-axis is the price scale and the X-axis is the time scale. Charts are used to analyze the price movements. When the prices of stocks become higher, then the market is said to be uptrend market. Similarly, when prices of stocks become lower, then the market is said to be the downtrend market.
Several technical indicators are applied to the charts to predict the price movements. The data of stock prices are derived by applying certain formulae. These derived stock prices are plotted on charts and the market trend is predicted. As per the prediction, the investors take the decision of buying and selling the stocks.
Some of the Technical indicators are Moving Average Convergence/ Divergence indicator, Relative Strength Indicator, Parabolic SAR, Adaptive Moving Average, Accumulation/Distribution and many more. However, in actual implementation of technical indicators is not that easy.