BASIC TECHNICAL ANALYSIS
RSI
RSI measures the speed and magnitude of a security's recent price changes to evaluate
overvalued or undervalued conditions in the price of that security. In the example given above, when
the RSI hits above 70, in this case it hits above 80 at maximum, it is considered to be overbought.
Instances like these suggests there will be a bearish trend. Similarly, at RSI 38.78 to 30.60 it shows
oversold in which case it suggests that a bearish trend is above to begin.
BASIC TECHNICAL ANALYSIS
MACD
When the blue line crosses orange line from below at point -7.83, it suggest that bullish trend is about to
begin and when the red line crosses orange line again at point 63.91 it suggests that the bearish trend is
about to begin.
BASIC TECHNICAL ANALYSIS
EMA
As the pint intersects each other at
point 1899.23, it signals for a bullish
trend to begin.
Bollinger Bands
As bands get narrower from point
1877.32 to 1979.29, it shows the
market is going to see changes soon
which may either be a bullish trend or a
bearish one.
BASIC TECHNICAL ANALYSIS
Engulfing Bearish Pattern
As the illustration above depicts when a bullish candle is overshadowed by a bigger bearish candle it
begins the bearish trend as shown above. This is known as engulfing bearish pattern as the bear engulfs
the bull in the market.
BASIC TECHNICAL ANALYSIS
Advance Block Pattern
As the above figure shows there are three bullish candles in the range of 433 and 471. It depicts the day
demand is high in the market and the confidence of the public in that stock. It also shows the
undecisivesness of the public in that stock with lower lows each days. Which suggests a correction in the
near days which will lead to the fall of the stock price and downward trend.