Brief Description Of Technical Analysis Book PDF Free Download
In the previous module, we have learned important information about the stock market. Now we know that in order to succeed in the stock market, it is necessary to formulate your vision based on good research. A good outlook means that the direction of the market as well as some other information such as…
- The price at which the stock should be bought and sold
- How much is the risk?
- How it can be beneficial
- the holding period of the share
Technical analysis (TA or TA) is the technique that can give you the answers to all these questions. Based on this, you can formulate an outlook on both the stock and the index, as well as finalize your deal according to the right time to enter the market, the right time to exit, and take risks.
Like all techniques of research, technical analysis has its own peculiarities that can sometimes seem quite difficult. But technology has made it easier.
In this module we will try to understand these specifications.
Details of Technical Analysis Book PDF
PDF Name | Best Technical Analysis Book |
---|---|
Language | Hindi |
Format | |
Pages | 17 |
Ratings | 4.9/5 |
Author | Deepak Sen |
Total Topics | 20+ |
PDF Size | 1 MB |
Download Link | Given Below |
What is Pankaj Nifty Technical Analysis?
Let's understand with an example.
Imagine you are holidaying abroad, in a country where language, weather, living, food, and everything else is new to you. On the first day, you walk around all day, and by the evening, you have a strong appetite. You want a good meal. You get to know that there is a place nearby where there are many famous food shops. You decide to try it.
Going there, you see a lot of shops, and everything sold there looks different and fun. Now you’re confused about what to eat? You can’t even ask people because you don’t know the language. In that case, what will you do now? What will you eat?
You have two options.
Option 1
You will go to the first shop and see what it is cooking. What are the things he is using for cooking, what is his method of cooking, and if possible, we will also taste a little. Then you will be able to decide whether this thing is good for your food or not. When you do this work with every vendor, then you will be able to find a place of your choice and eat your favorite thing. The advantage of this method is that you will be completely satisfied with what you are eating because you have done your own research to eat it.
But the problem is that if there are 100 or more shops, you will not be able to check each shop yourself. If there are more shops, it can be even more difficult for you. Lack of time can also make it difficult for you because you will be able to go to only a few shops. In such a situation, it is possible that only the best thing is left from you.
Option 2
You stand in one place and look at the entire market. Try to see which stores are the most crowded and have the most sales. In this way you can guess that good food must be available in that shop; only then is there so much crowd there. Based on your estimate, you will go to that shop and eat there. This way you will be more likely to get the best food in that market.
The advantage of this method is that you will be able to quickly find as many good shops as possible and hope to get good food by betting on the most crowded shop. The difficulty is that maybe the crowd’s choice is wrong, and you don’t get good food every time.
After reading these two options, you must have understood that the first option is like fundamental analysis, where you yourself do in-depth research about some companies. Fundamental analysis will be discussed in detail in the next module.
Concepts of Technical Analysis Book
Technical analysis does not take into account whether a stock is undervalued or overvalued. There is only one thing that matters in technical analysis and that is the old trading data of the stock and what this data can indicate about the coming time.
Technical analysis is based on some basic concepts, which are important to know about:
Markets discount everything
This concept tells us that all information or information related to a share is included in the market price of that share. For example, if a person is quietly buying a stock from the market because he probably knows that the next quarter of the company is going to be good, then the stock will make a profit. Even if that person is doing it secretly, its effect is visible in the share prices. A good technical analyst identifies this on the chart of the stock, and he considers this stock suitable for purchase.
Why it's More Important
This concept is derived from the first concept. In our previous example, a good technical analyst would not want to know why the person bought the stock. The technical analyst’s full attention will be on how the person’s hidden purchases are affecting the share price and what will happen next.
Price Moves in Trend
According to technical analysis, every change in price indicates a particular trend. For example, the rise of the Nifty from 6400 to 7700 did not happen in a single day. This trend started 11 months ago. Another concept related to this is that when the movement of one side starts, the price of the share also increases in the same direction, sometimes upwards and sometimes downwards.
History repeats itself...
According to technical analysis, the price trend repeats itself. This happens because market participants react the same way every time to a one-way event. That’s why the share price moves the same way.
For example, in an up market, every player in the market wants to buy the stock at any price, no matter how expensive the stock is. In the same way, in a falling market, they want to sell at any price, even if the price of the share is much cheaper than its actual price. Because of this habit of man, history repeats itself.
Why Read Technical Analysis Books?
Books deliver deeper educational content than videos, articles, or YouTube videos that offer quick trading tips. Drylab presents three essential benefits of reading technical analysis books, which include:
- Trading strategies receive complete coverage through book learning.
- Expert Insights: Learn from seasoned traders with decades of experience.
- Real-life applications include tangible examples and case studies as well as trading methods.
- Trade strategies developed through books enable better retention of knowledge instead of using unreliable tips.
- The structured approach of books differs from online articles since they offer an organized learning sequence.
The importance of books established we should examine several excellent technical analysis books that can be accessed without cost through PDF files.