Technical analysis says that when ever a stock price rises, it will continue to rise till there is break. This continuous rise in the price of the stock is known as 1.Uptrend. On the other hand when ever the price of the stock falls, it will continue to fall until the situation changes. This is known as 2.Downtrend. A chart is a combination of up trends and down trends.

As a investor or analyst we need to figure out the starting point of the uptrend to take a position and ending point of the uptrend so that we can make maximum profit. Similarly a buying decision in down trend can be taken at the end point of the down trend. Hence we use various methods in technical analysis to identify these trends.

In the chart shown above the price starts falling and the trend become DOWN, and the price again move up and the trend Become UPTREND.You can view/identify both these trends a line drawn in the chart.

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There is another trend is called 3.SIDE WAYS.

In side ways trend the price will held in a narrow cage and move side ways.When this happen we will not have buy and sell chances.Where us in up trend one can buy at low and sell at high.In Down trend one can sell at high and buy at low.The price differences between buy and sell is your profit.

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How to identify when to buy/sell !!!

We need to understand various technical parameters/analysis.There are so many indicators and chart patterns through which we can identify/will know when to buy and when to sell.It is a big study.We will discuss one after another ...