European and Asian stock markets were expected to fall sharply on Monday amid fears that the terror attacks in Paris would hurt Europe’s economic recovery. There are many stock tips and penny picks out there that investors can start to build a stock list or screening NASDAQ and AMEX stocks with a stock screen for new stock ideas. Stock market analysis is the process of investigating and studying data on existing stocks and trying to predict how they will do in the market. This is used by most traders due to the fact that stock prices can change from moment to moment, but they normally have a pattern of either going up or down that can be analyzed and followed.
Multiple factors go into stock market analysis to see what sort of thing causes the prices to go up or down. You can’t use a system of stock market analysis over the long term, however, because it doesn’t include any information on a business’ future potential. It uses a slightly different system of markings to show the highs and lows and prices of the stock it is following. Another stock market strategy that may seem counter-intuitive is to buy high and sell higher.
They can use well-developed patterns, or use what is called support and resistance Support is when they track the level from which lower stock prices are predicted to go up from and resistance is the height the stock is predicted to get to before it may go down in price again. The top of this chart for stock market analysis would list the high price while the smaller bar chart to the right lists the opening and the other one lists the closing prices. Money Flow Index – This process uses the amount of shares that were traded plus the cost of the stock.
A particular pattern that is often seen in financial market analysis is known as the Cup and Handle This is when a stock starts off with a high price and then dips in cost and eventually returns to a higher price. When that stock levels out in costs, it is called the handle of the stock, and this can be a good place to buy so the trader makes good profits when it goes back up, which is the cup part of the pattern.
Relative Strength Index – This stock market analysis tool looks at a comparison of the amount of days a stock ends on a positive note and the amount of days it ends on a negative note. In order to use it, the traders divide the median amount of days the stock goes up by the median amount of days it goes down. Bollinger Bands – This type of stock market analysis is recorded as a plotted group of three lines. All in all, you must use some sort of stock market analysis if you want to be successful in trading on the stock market. The most basic stock market trading strategy is known as buy low and sell high.