Understanding the Stock Market Movements Through Technical Charts: An Empirical Study

Abstract

The purpose of this is to examine the data on the effectiveness of technical analysis. According to research, technical trading tactics are lucrative in foreign currency and futures markets but not always in equity markets. Technical trading tactics routinely generate economic returns in a wide range of speculative markets. Notwithstanding the good evidence for the effectiveness of technical trading methods, most empirical studies include flaws in their testing techniques, such as data spying, ex post choice of stocks traded or search technology, and challenges in estimating risk and operating costs. In order to give clear data on the effectiveness of technical trading techniques, future research must overcome these testing shortcomings. The researcher had considered people from stock market to understand the stock marketing movements through technical charts and found that stock charts to find trends and patterns that may indicate how a stock will act going forward, Traders use chart technical advanced analytics to discover points of entry and exit for possible transactions and technical trading tactics routinely generate economic returns in a wide range of speculative markets.