Technical analysis tool serves as a crucial instrument in share market as it quickly solves a lot of complex tasks thus assisting in accomplishing your goal. Nowadays everyone is quite enthusiastic about investing in the stock exchange, but for newcomers, it is a tough job to monitor every movement in the stock market. So in those technical analysis tools comes handy which provides the movement of particular stock in the market.
However, it is tough to choose technical analysis tool from massive availability on the internet, and as an amateur, you will get fumbled while choosing a particular one. Every tool has pro and cons like you will find some tools easy to operate while some tools would go over your head. Everyone loves to use to tools that are easy to handle, clean and possess specialized scalability which will help them in buying and selling of stock.
Top 5 Technical Analysis Tools
If you are planning to invest in the stock market but couldn’t figure out where to spend, then you can take help from technical analysis tool. The following points will depict the name of five technical analysis tools that would suit your need:
- Simple Moving Average –
Simple moving average is a widely popular stock market tool, and many users use this instrument for three time period which are 20, 50 and 200 days. This tool shows you the average of the old N number of days which is highly needed. Apart from selling or buying stocks, you can even use this for support or resistance.
- Stock Charts –
The Stock charts are one of the cleanest and useful tools in the market. You can easily use this tool because it has a clear interface and many experts use this website for its effective result. Stock charts provide various type of free tools to its users, and it has benefited many people when they are about to buy new stock.
- Relative Strength Index –
Relative Strength Index is not a simple tool and it useful for traders who can easily understand complex math problems. This tool provides you a chart of comparison result which is calculated from the comparison between profit and loss. Many experts highly applaud this tool because it provides you a reliable result which helps traders to make final decisions.
- MACD –
Moving Average Convergence and Divergence or MACD is a well-known technical analysis tool, and it provides an efficient result. Although it shares some similarity with SMA but MACD’s indicator provides a different result that comes handy in a different situation. Based on the result you can easily understand when to buy or sell the intended stock.
- Parabolic SAR –
Parabolic SAR is designed for stock experts who can understand complex calculation, but you can also use this tool after you gather some experience. This is a powerful stock analysis tool which is used all over the world, and its popularity is growing day by day. This tool works well with stock that provides clear tendency when they are analyzed.