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Technical analysis is the most preferred way of trading in the Stock market.
There are more than dozen of indicators which are studied in the Technical analysis.
How Parabolic SAR can be used in conjunction with the other indicators to generate accurate Free Intraday tips.
The indicator can be used to generate accurate intraday trading tips and equity tips in the form of buy and sell calls.
The parabolic SAR is a trend following indicator.
It indicates the current trend and helps in following the trend. It is shown by the black dots on the price versus time graph. The arrangement of graph indicates whether the price movement is in uptrend, downtrend or no trend. Thus the trend following strategies can be use to trade effectively in the intraday as well as short term trading.
The parabolic SAR can be used in conjunction with other indicators like ADX and RSI.
The ADX indicator determines the strength of the trend in place. It determines whether the trend is a strong trend or a weak trend. Thus the ADX and SAR can both be used together to generate confident signals for trading.
The parabolic SAR can also be used with RSI.
The RSI indicator will help in determining the oversold and overbought levels. There are high chances of trend reversals at these overbought and oversold levels. Thus the trend reversal signals can be confirmed from both the RSI as well as Parabolic SAR.
There are many ways to trade in the Stock Market.
The technical analysis is one of the most important ways of trading in the Stock Market. There are more than dozen of indicators which are studied in the Technical analysis. There are two broad categories of indicators in the Technical analysis. The momentum indicator and oscillator indicators are the main categories of the indicators present. The momentum indicators are usually the trend following indicators and represent the present trend. The oscillators are usually the strength index and determine the strength of the trends. The momentum indicator give signals about the trend following and consolidating the buy and sell signals based on the current trends. The oscillators give potential signals about the trend reversals.
The common momentum indicators include the moving averages, MACD and parabolic SAR.
The MACD stands for moving average convergence and divergence. The moving averages are also of two types, the simple moving average and the exponential moving averages. The simple moving average gives a slow response as compared to the exponential moving averages.
The common oscillator indicators include the RSI and Bollinger bands.
The RSI stands for the relative strength index and it takes a value between 0 and 100. The value of RSI near 30 indicates the oversold levels and the value of RSI near 70 indicates overbought levels. The overbought and the oversold levels are the potential chances of trend reversals. Similarly Bollinger bands are also oscillators which gives buy and sell signals on breakout of price levels.
The above described indicators are extensively used by the technical analysts to generate accurate free intraday tips.
The technical analysts in the advisory firm use the above indicators to generate equity tips and intraday trading tips. Money Classic Investment advisors is one such advisory firm which is reputed and SEBI registered. The advisory firm is also ISO certified
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