Types of market analysis
Right now market analysis can be categories into two.
1) General purpose technical analysis
2) Sophisticated
1) General purpose technical analysis: Under this comes
A) Classical technical analysis method: practitioner of this engages themselves in finding price pattern like the triangle, rectangle, head & shoulder, flag, peanut, cup handle etc.
B) Elliott wave: practitioners of this try to engage themselves in finding unique structures of waves where one wave lead to the generation of the consecutive wave. I was amazed by this analysis type when I first read this and start to utilize in my trading. I felt like ( BRAMAH Hindu mythological god who know past present and future of all ) once you found a good script where wave obeying initial condition you know its probable future course of action and the following stock become breeze till it makes money for you.
C) Modern charting technical analysis: I call this modern because this came into existence heavenly after the computer becoming affordable and market data become accessible via the internet and gain momentum in later 80s till toady used heavenly by trader across the globe. trader try to find price pattern based on price volume open interest data by using various kind of derived mathematical formula into indicators, oscillators etc.
Since common man gets affordable access to computers & real-time data developer are using it for all above A and B type technical analysis either standalone of combining A, B and C method.
here we cane can say democratization had taken place in this technical analysis method. And I day trade mainly by finding common market pattern based on the combination of various indicators.
under this one more form of analysis called MARKET PROFILE.
MARKET PROFILE: trader of this method use a little bit of different price-volume chart layout to find support- resistance level to trade.
2) Sophisticated: under this comes algorithmic and HFT (high-frequency trading)
these are generally greenfield trading system having almost nill human intervention. they mainly use statistical data to find tradable market pattern & use speed of the computer to execute their trade. Here we do not see a single individual trader, the instead whole bunch of data scientist, mathematician, computer Engg working together to make competing system.
Still, this type of trading is beyond the reach of a common trader right now.
At last, I would like to tell you that there is no such perfect analysis methods exist. Above all method evolve just to fill the shortcoming of its previous analytical method.
And one should never think only latest or most sophisticated method only make money. Even classical analysis method or any method might work for you. What required for you to get trained in any one analysis method.
Readers, If I have missed mentioning any analysis method kindly write to me in the comment.
Also, I would like to be the partner in your endeavor in making you, trader. For this, you can ask me your analysis and trading related query.
1) General purpose technical analysis
2) Sophisticated
1) General purpose technical analysis: Under this comes
A) Classical technical analysis method: practitioner of this engages themselves in finding price pattern like the triangle, rectangle, head & shoulder, flag, peanut, cup handle etc.
B) Elliott wave: practitioners of this try to engage themselves in finding unique structures of waves where one wave lead to the generation of the consecutive wave. I was amazed by this analysis type when I first read this and start to utilize in my trading. I felt like ( BRAMAH Hindu mythological god who know past present and future of all ) once you found a good script where wave obeying initial condition you know its probable future course of action and the following stock become breeze till it makes money for you.
C) Modern charting technical analysis: I call this modern because this came into existence heavenly after the computer becoming affordable and market data become accessible via the internet and gain momentum in later 80s till toady used heavenly by trader across the globe. trader try to find price pattern based on price volume open interest data by using various kind of derived mathematical formula into indicators, oscillators etc.
Since common man gets affordable access to computers & real-time data developer are using it for all above A and B type technical analysis either standalone of combining A, B and C method.
here we cane can say democratization had taken place in this technical analysis method. And I day trade mainly by finding common market pattern based on the combination of various indicators.
under this one more form of analysis called MARKET PROFILE.
MARKET PROFILE: trader of this method use a little bit of different price-volume chart layout to find support- resistance level to trade.
2) Sophisticated: under this comes algorithmic and HFT (high-frequency trading)
these are generally greenfield trading system having almost nill human intervention. they mainly use statistical data to find tradable market pattern & use speed of the computer to execute their trade. Here we do not see a single individual trader, the instead whole bunch of data scientist, mathematician, computer Engg working together to make competing system.
Still, this type of trading is beyond the reach of a common trader right now.
At last, I would like to tell you that there is no such perfect analysis methods exist. Above all method evolve just to fill the shortcoming of its previous analytical method.
And one should never think only latest or most sophisticated method only make money. Even classical analysis method or any method might work for you. What required for you to get trained in any one analysis method.
Readers, If I have missed mentioning any analysis method kindly write to me in the comment.
Also, I would like to be the partner in your endeavor in making you, trader. For this, you can ask me your analysis and trading related query.
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