Technical analysis

Technical Analysis

Technical Analysis

Technical analysis is a collection of methods to predict future stock prices taking into account only the past and present data – prices and (optionally) volume. There is no consideration given to the fundamentals of the company or the industry under consideration.

I personally use technical analysis(TA) only after I have zeroed in onto a company that I want to invest in. That is, I use it to determine when to enter (buy) and when to exit (sell). Over and above that – I do not execute blindly the output from TA. I look at the market sentiment, company and industry timing etc. Even so, technical analysis does help me big time with the decision making.

How is TA performed? No need to understand that. Attached is a spreadsheet that will help you carry out TA based on different indicators: Moving average, Moving Average Convergence / Divergence or Relative strength index.
The spreadsheet is here: AutoTech.

How is this spreadsheet different from others available online?

  • This sheet doesn’t require you to interpret the graph. While the graph is still created, which you can check, or create additional graphs based on the data, its not really required – you can read the interpretations directly. The sheet gives you buy/sell advice directly based on the indicator you select.
  • The sheet does not require you to buy MS Excel if you do not have it. It works fine with Openoffice Portable. I have already talked about portable apps – this one is free as well.
Share

―――――――――――X――――――――――

About the Author

7 Responses to “ Technical analysis ”

  1. Dear Mr Singh,

    I have come across your spreadsheet that calculates RSI on the internet…..

    I am working on a test on WTI oil spreads and I want to test the RSI indicator on my data.

    I would like to ask you if could I get the formula that calculates RSI in Excel.

    Thank you in advance,

    Andrei

  2. Dear Hardeep,

    Thank you very much for your help.

    Yes it is for my personal use – I want to test the buy and hold against
    a combination of RSI and MA strategy in my dissertation.

    May I ask you was there a particular reason why you used a 27 days for
    the RSI???

    Regards,

    Andrei

  3. 27 day RSI is quite popular, it works for stocks and even finds reference in the wikipedia link I shared above. The results can be interpreted quite easily. With my spreadsheet you especially do not have to interpret manually.

  4. I believe Technical Analysis can be a helpful tool, but only after you have Identified that undervalued stock your looking for. Then it usually will tell you the best times to get in.

  5. I have to entered data in ascending order or descending order.
    that if date range is 1-dec-12 to 20-03-13

    then first 1 number cell will contain 1-dec / 20-mar record.

    Thanks

  6. @Tejas, Ascending order, so 1st Dec 2012 first.

Leave a Reply

You can use these XHTML tags: <a href="" title=""> <abbr title=""> <acronym title=""> <blockquote cite=""> <code> <em> <strong>


Warning: Illegal string offset 'solo_subscribe' in /home/seeingw/public_html/2cblog/wp-content/plugins/subscribe-to-comments.php on line 304

Subscribe without commenting