Monday, August 31, 2009

Technical Analysis of Shares

hough the domestic share market doesnot follow the internationally-accepted practice -- neither fundamentals nor technical -- and directed by hearsay and noise creators, Rabindra Bhattarai, a share analyst and lecturer at Shanker Dev Campus, has brought a book on Technical analysis of Shares in the market; Share ko Prabidhik Bishleshan (Technical analysis of shares).

The book tries to explain some of the technical system of analysis like double top formation, double bottom formation, head and shoulder formation, rounding top, rounding bottom, triangle, rectangle, support and resistance, A-D ration and volumn analysis.

The investors could take more benefit, if they read the book, though it could not be guaranteed in the domestic market. Bhattarai rightly quotes in the book -- buyers buy in the expectation that the price will go higher and the sellers sell because they think the price will go down, its a huge psychological game that repeats daily at the floor. But the book might boost pyshological confidence of the investors with logical analysis.

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