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Stock Market Trend Analysis: 3 Steps to Find Leading Stocks

Stock market is all about sudden fluctuations, sharp volatility and unpredictable downfalls, which makes it difficult to understand. As an investor, you should understand the fundamentals of stocks. Read the blog for stock market trend analysis.

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Stock Market Trend Analysis: 3 Steps to Find Leading Stocks

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  1. Blog2: equity99.com How to analyze Stock Market Trends - 5 Rules for predicting Analyzing stock market trend is one of the most difficult aspects of investing. People find it complex and somewhat critical to understand market trends as a result they start losing money. That is why it is more than essential to learn share market analysis or equity market analysis to stay away from risks. Share market analysis or equity market analysis helps investor during both upward and downward trends. Collect, analyze and interpret past and current data According to an investor, in order to predict and understand future trends of a stock, one should be able to collect, analyze and interpret past and current data. Hence, we can say that it is all about data analysis and without data it is difficult to precisely predict the future movements. Did you know? Past movements are windows to the future trends. Let us see some rules to follow for stock market trend analysis – Three data points needed – Make sure you collect three data points to start analyzing the trends. Direction – There is no denying the fact that trends can move in 3 directions such as up, down, and sideways. Means, you need to study charts to know and understand directions and future movements of stocks.

  2. Blog2: equity99.com Keep an eye on the slope – Slope of a trend shows how much the price should move each day. Steep lines indicate a certain trend. Means, you need to focus on the slope and curves to improve your analytical skills. Time the trend – The amount of time identifies the validity of a trend. It helps to determine persistence, weakness and strength of a trend in a give time. Long lasting – If a trend persists for a longer time, the greater the weight it carries. Means, it helps to know sharp falls as well as recovery. Also, you need to focus on patterns while analyzing trends. Besides all these elements, make sure you know financial goals, risk tolerance and investment strategies. All these things will not only give you enough confidence, but also illuminate your path. Hence, to get an insight into stock trends, it is important to have a clear understanding of current and past data of stocks.

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