We always search for the best opportunities in our life. Let’s understand this with an example. When an individual visits a foreign place and starts exploring then he can find the best places to dine by following either of the two methods. Either he can research different places and choose the best option by searching rigorously or he can simply look for a place with maximum customers. The first method is fundamental analysis while the latter where he acts based on his assumptions and crowd movement is technical analysis. 

In a similar way, the stock market psychology is based on the sentiments of buyers and sellers and it is a powerful source. At one single point in time, millions of people are trading, which leads to the importance of understanding the crowd’s behavior. People trade in the stock market with proper risk management, but the key thing is to learn the behavior of an investor or trader. 

Technical analysis focuses on patterns, trends, and other indicators that would drive the stock prices lower or higher. In every key technical indicator, there lies the market psychology based on buyers’ and sellers’ sentiments. Through technical analysis, one can find the crowd behavior and then can trade as per the movement. 

Technical analysis doesn’t look into undervalued or overvalued stocks. It analyses past data based on price and volume and how this past data helps an individual to find the future movements of a stock. There are some general assumptions in technical analysis like market discounts everything, price moves in trend, and history repeating itself. 

Thus, it is very much important to cover the technical analysis in the seventh module of my course, “A Complete Course on Indian Stock Market”. 

Technical analysis helps in finding opportunities in current market trends as per market participants using charts and trading with technical analysis is all about using the opportunity in a disciplined way. By looking at charts deeply, one can find chart patterns based on past trading activity to know about the current trend of the market. 

Module 7 is all about technical analysis and teaches about the core concepts of technical analysis like the Efficient Market Hypothesis, Dow Theory, etc. The chapters in module 7 are- 

Class 60. Introduction to technical analysis - Keywords explained. 

Class 61. Understanding the core concept of technical analysis. 

Class 62. Data, Moving Average, and Crossover. 

Class 63. Chart & Patterns - Part 1. 

Class 64. Chart & Patterns - Part 2. 

Class 65. Introduction to Free Charting Software and Indicators. 

Class 66. MACD Indicator. 

Class 67. RSI Indicator. 

Class 68. Bollinger Bands. 

Market Psychology is one of the major segments of the stock market with many trusted indicators. If it is understood clearly, it helps traders to find the sentiment changes in the market and can prevent an individual from huge losses. You don’t make money by trading; you make it by sitting. It takes patience to wait for the trade to develop, for the opportunity to present itself. 

If you have enrolled in my course, “A Complete Course on Indian Stock Market”, and have any doubts about any of the video classes related to module 7, then you can ask by commenting below this blog.

Although, Zoom Link will also be sent to you. And I will regularly keep taking Live Doubt Sessions at different times to answer all your questions in Zoom live class. But still, you can also ask your questions here as well.

One such blog has been created for each module of the course. Please make sure that you ask only module-related questions with the name of the chapter.

Yours

Kundan Kishore

Any Doubt Related To Module 7 Can Be Posted Here.