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Tag: chart analysis

  • Why Technical Analysis Isn’t Just for Traders—And How Long-Term Investors Are Quietly Using It Too

    There’s this idea that floats around every new investor community—that technical analysis is only for the fast-money folks. You know, the intraday crowd. Candles, charts, scalp trades, the works.

    But that’s not entirely true. And maybe it never was. Because what’s happened, quietly, is that a lot of long-term investors—not the ones yelling “buy the dip” on social media, but the quieter kind—have started borrowing from the trader’s toolkit. Not to trade more. But to see better.

    And honestly? It makes sense.

    What Even Is “Technical” Anyway?

    At its core, technical analysis is just the study of price and volume. Not what a company says. Not what the economy’s doing. Just how the stock has moved. Where it paused. Where it collapsed. Where people seemed to care—and where they didn’t.

    Some folks turn that into a full-time system. Patterns, indicators, backtests. But you don’t have to go that far to get value. Sometimes, all it takes is pulling up a one-year chart and asking: Did this stock make higher highs or lower lows? That’s not trading. That’s observation.

    The Long View Still Has Patterns

    Say you’re thinking of holding a stock for the next three years. Cool. But when are you entering? Random day? Or when the price’s finally stopped falling after months of drift? Some folks time their entries based on analyst reports. Others look for “support zones.” You’d be surprised how often those zones appear on basic charts—even for blue-chip companies.

    It’s not about catching the bottom. It’s about avoiding entries where the floor’s still collapsing.

    That’s where technicals help.

    Investors Use Fundamentals. But They Don’t Live Inside Them.

    Even the most patient, valuation-focused investor isn’t staring at balance sheets every week. Once you’ve done the math, what you’re watching is behavior. Does the market agree with your thesis? Is volume picking up? Did something change?

    That’s chart-watching.

    Maybe not with Bollinger Bands or MACD. But with intent.

    Zebu’s platform, for instance, doesn’t force traders to choose. You can check earnings, then flip to a 3-month chart. It’s fluid. Not segmented. That blending—that’s how modern investing looks now.

    Avoiding Painful Timing

    Let’s be honest. Some investors get the company right, but the price wrong. They buy too early. Or just before a correction. And sometimes, all they needed to do was zoom out.

    • “Was this stock in an uptrend?”
    • “Did it just break below its 200-day average?”
    • “Was there a sudden spike in volume on a red candle?”

    None of that requires being a trader. Just curiosity.

    Tools Aren’t Just for Trades

    You don’t need to draw trendlines or scalp intraday to use RSI. Or moving averages. Even the most conservative investors use basic technical indicators to confirm if the market’s in sync with the company’s story.

    It’s like checking weather before a road trip. You’re still making the journey. You’re just smarter about when you leave.

    The Psychology Side No One Talks About

    One reason long-term investors started checking charts? To keep their own heads calm.

    When a stock drops 5% in a day, it’s easy to panic. But a glance at a chart might show you it’s just revisiting a previous support. Or still within a larger trend. That single visual—red candles stacked but staying above a known level—can be more calming than re-reading the last five annual reports.

    Nobody’s Asking You to Become a Day Trader

    This isn’t about switching styles. It’s about seeing more. If you use SIP calculators, you already use tools. This is just one more. Charting tools don’t tell you what to do. But they can help you frame better questions. Like: “Has this level ever held before?” Or: “Is this rally happening on volume, or just air?”

    Simple stuff. But helpful.

    Even Mutual Funds Use Charts

    This part might surprise you. But even large institutional funds—those big, buttoned-up ones—watch technical indicators before making huge allocations. Not always for timing. But for reading sentiment. Because if a fundamentally great stock is sliding below key levels on high volume? That says something. Doesn’t matter what the PE ratio looks like.

    If You’re on Mobile, It’s Even Easier

    On Zebu’s mobile platform (or any serious one, really), the shift between reading a news headline and looking at a daily chart is one swipe. You don’t need to open ten tabs. Just check.

    That kind of frictionless movement—that’s how technical analysis stops being intimidating. It starts becoming… normal.

    Final Thought: It’s Just One More Lens

    Fundamentals tell you what a company is. Technicals tell you how the market’s treating it. You don’t need to marry either. But it’s probably wise to date both. Because the modern investor? They’re not just buying a stock. They’re buying time. And tools help them spend that time better.

    Disclaimer

    This article is intended for educational purposes only. It is not investment advice or a trading recommendation. Zebu offers access to tools and information to support user decisions, but individual outcomes may vary. Please consult a licensed financial advisor before making financial decisions based on market data or chart analysis.

    FAQs

    1. Is technical analysis only for day traders?

      No, technical analysis for long term investors can help spot trends, entry points, and potential risks even for multi-year investments.

    2. Can you use technical analysis for long-term investing?

      Yes, technical indicators for long term investment, like moving averages and trend lines, can guide long-term buy and sell decisions alongside fundamentals.

    3. How does technical analysis differ from fundamental analysis?

      Technical analysis focuses on price patterns and market behavior, while fundamental analysis looks at company financials, growth, and intrinsic value.

    4. Does technical analysis work for long-term investing?

      It does, especially when used in combination with fundamental analysis to time investments and reduce risk over time.

    5. Which technical indicators are best for long-term investors?

      Moving averages, MACD, and RSI are popular for long-term trends, helping investors confirm market direction and avoid poor timing.

  • The Theory Behind Fibonacci Retracement Trading Strategy

    Fibonacci retracement trading strategy is a technical analysis tool that is widely used by traders to identify potential levels of support and resistance in a financial market. This strategy is based on the mathematical sequence developed by Leonardo Fibonacci in the 13th century and the idea that markets move in predictable trends. In this blog post, we will explore the theory behind Fibonacci retracement trading strategy and how it can be used to make informed trading decisions.

    The Fibonacci sequence is a series of numbers where each number is the sum of the two preceding numbers. The sequence starts with 0, 1, and continues as 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, and so on. The Fibonacci retracement levels are calculated by dividing the vertical distance between a high and low point by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8%, and 100%.

    In the context of trading, Fibonacci retracement levels are used to identify potential levels of support and resistance in a financial market. When the market moves in a particular direction, traders use the Fibonacci retracement levels to determine where the market is likely to experience resistance or support. For example, if the market is in an uptrend, traders might look for opportunities to buy at the 38.2% or 50% retracement levels, which are considered to be potential support levels. If the market is in a downtrend, traders might look for opportunities to sell at the 61.8% retracement level, which is considered to be a potential resistance level.

    The theory behind Fibonacci retracement trading strategy is that market trends often retrace a predictable portion of a move, after which they continue to move in the original direction. This is where the key Fibonacci ratios come into play. Traders believe that these ratios are significant because they are found in many natural phenomena and are thought to reflect the underlying structure of the financial markets.

    One of the key benefits of using the Fibonacci retracement trading strategy is that it can help traders identify potential levels of support and resistance in the market. This information can be used to make informed trading decisions, such as entering or exiting a trade, adjusting stop-loss orders, or placing take-profit orders.

    Another benefit of using the Fibonacci retracement trading strategy is that it can be used in conjunction with other technical analysis tools, such as trend lines, candlestick patterns, and moving averages. This can help traders confirm their trades and increase the accuracy of their predictions.

    In conclusion, the Fibonacci retracement trading strategy is a powerful tool that can be used by traders to identify potential levels of support and resistance in the financial markets. By combining the theory of the Fibonacci sequence with the concept of market retracements, traders can make informed trading decisions and achieve their financial goals. However, it is important to remember that no trading strategy is foolproof and traders should always conduct their own research and seek advice from a financial advisor before making any investment decisions.

  • 5 Important Technical Analysis Indicators That Investors Should Know

    Technical analysis is useful in a variety of situations. It can be used to trade stocks, futures, and commodities, as well as fixed-income securities, FX, and other financial instruments.

    Technical analysis is the art and science of predicting future prices based on the analysis of historical price movements. Using historical market data, mass investor psychology is examined. The data set comprises information about the price, the date, and the volume.

    A price chart provides the most useful information for reading a historical description of a security’s price movement over time. Charts are significantly more readable than a table of numbers. Volume bars are shown at the bottom of most stock charts. It is simple to recognise market reactions before and after major events, past and present volatility, historical volume or trade levels, and relative strength of the company vs the index using this historical image.

    Before we get into the importance of technical analysis indicators, you need to have the right technologies. At Zebu, one of the fastest-growing brokerage firms in the country, we have created the best Indian trading platform with the lowest brokerage for intraday trading. If you would like to simplify your option trading and investment game, we are here to help you out.

    The following are five indicators that every investor should be aware of:

    1) The Relative Strength Index (RSI)

    The RSI is a momentum oscillator that measures the amount and pace of directional price changes. RSI calculates the momentum of a stock with the rate at which a price rises or falls. The RSI calculates momentum by dividing the number of higher closes by the number of lower closures. The RSI of stocks that have experienced more or stronger positive movements is greater than the RSI of equities that have experienced more or stronger negative changes.

    The indicator has a 70-point top line, a 30-point lower line, and a 50-point dashed mid-line. When a price rises rapidly, it is called overbought at some time (When the RSI crosses 70). Similarly, when the price falls swiftly, it is termed oversold at some point (when the RSI passes 30). The RSI level is a gauge of the stock’s recent trading strength. The slope of the RSI is proportionate to the rate at which a trend changes. The RSI’s move is directly proportional to the degree of the movement.

    2) Moving averages
    In technical analysis, moving averages are one of the oldest and most useful technical indicators. When used in conjunction with other oscillators such as MACD and RSI, moving indicates a trend in a “smoothed” manner and can provide trustworthy signals.

    The three types of moving averages are simple moving average (SMA), exponential moving average (EMA), and weighted moving average (WMA).

    Moving averages for stocks are commonly used for 10 days, 21 days, 50 days, 100 days, and 200 days. The simple moving average is the most widely used moving average (SMA). Single SMAs can be utilised to spot a trend, but we found that using a dual or triple moving average is more effective.

    3) Stochastic Oscillator

    The Stochastic Oscillator is a momentum indicator that depicts the current close’s position in relation to the high and low ranges across a set of periods. Closing levels that are constantly near the top of the range suggest accumulation (buying pressure), while those that are consistently towards the bottom of the range indicate distribution (selling pressure). The premise behind this indicator is that prices tend to close near their highs in an upward-trending market and near their lows in a downward-trending market.

    4. Bollinger Band

    John Bollinger developed Bollinger Bands as a technical trading technique in the early 1980s. Bollinger Bands are used to define high and low points relative to each other. Prices are high in the top band and low in the lower band by definition. This definition can help with pattern recognition and can be used to compare price action to indication behaviour. Bollinger Bands are a series of three curves that are drawn in connection to stock prices. The middle band, which is usually a simple moving average that acts as the base for the higher and lower bands, is a gauge of the intermediate-term trend. Volatility, which is often the standard deviation of the same data used for the average, determines the gap between the upper and lower bands and the central band. You can change the default parameters, which are 20 periods and two standard deviations, to fit your needs.

    5) Parabolic SAR (Parabolic Stop and Reverse)

    SAR, or stop-and-reversal, is a technical analysis strategy that uses a trailing stop and reverse method to discover appropriate exit and entry locations. J. Wells Wilder came up with this strategy. Basically, one should sell if the stock is trading below the parabolic SAR (PSAR). If the stock price is higher than the SAR, it is a good time to buy (or stay long).


    As we mentioned before, investing or trading you need the right tools. We at Zebu offer the best Indian trading platform and the lowest brokerage for intraday trading. As one of the best brokerage firms in the country, we have created a powerful trading platform that makes investing easy for you. To know more about its features, please get in touch with us now.

  • 5 Myths About Technical Analysis Debunked

    TA is criticised by some traders and investors because they believe it is merely a surface examination of charts and patterns with no real effect on the market. However, there are many who feel that once they’ve mastered it, they’ll be rewarded with huge returns. Contrasting views on technical analysis have led to misunderstandings about how it is used.

    Misconceptions regarding technical analysis can be traced back to a lack of exposure to the subject in school. Someone who has just been taught the basics of trading may have little faith in technical analysis at all. If you have a background in technical analysis, though, you can still make money from it.

    These and other TA assumptions are the results of missteps and errors. For example, losses are sometimes caused by the bad use of technical indicators. That doesn’t necessarily mean that the strategy is bad; it could just be that the person needs more instruction and practice.

    Before we get into debunking myths about technical analysis, you need to make sure that you use the best broker for trading with the lowest brokerage on offer. Zebu empowers your online stock trading journey with a state-of-the-art trading platform as well.

    Here are eight of the most frequent technical analysis myths—and why they’re just not true.

    1. Short-term trading or day trading is the only use for technical analysis

    Many people believe that only short-term and computer-driven trading, such as day trading and high-frequency trading, may benefit from using technical analysis in their trading. It was long before computers were commonplace that technical analysis was used by long-term investors and traders rather than day traders. From one-minute charts to weekly and monthly timeframes, several types of traders use technical analysis.

    2. Technical analysis is only used by retail traders.

    Individual traders utilize technical analysis, but so do hedge funds and investment banks. Technical analysis is used extensively by the trading departments of investment banks. High-frequency trading is primarily reliant on technical ideas and accounts for a significant portion of stock exchange trading volume.

    Technical analysis has a low rate of success
    Successful market traders with a long track record of trading disprove this urban legend. A large number of successful traders attribute their success as a result of technical analysis and patterns. They do, however, attribute their success to strict discipline.

    3. Technical Analysis Is Quick and Efficient
    Trading success can be had by following a variety of technical analysis courses available on the internet. Despite the fact that many people begin trading by using simple technical indicators, long-term success in trading takes much education, practice, solid money management, and a strong sense of self-discipline. Technical analysis is merely a tool, a small portion of the larger picture to be considered.

    4. Price Predictions Based on Technical Analysis Are Accurate

    Many newbies expect technical analysts or software patterns to provide 100% accurate advice, which is not always the case. It’s common for new investors to expect a prediction like “stock ABC will hit Rs 200 in two months.” Technical analysts, on the other hand, tend to avoid quoting exact prices. They would rather give range-based predictions like a stock to move between 180 and 200 by the end of next week.

    Traders who place their bets based on technical analysis should be aware that it only provides a range of possible outcomes, not a specific value. When it comes to technical analysis, there are no assurances. Even if something doesn’t function 100% of the time, it can still be very profitable if it works more often than not.

    5. Technical Analysis should have a higher success rate

    Despite popular belief, it is not necessary to have a large percentage of successful trades to be profitable. In this hypothetical example, Peter has four successful transactions out of five, whereas Molly only has one win out of those same five trades. Who is the most successful person in their field? But even if the majority of people say Peter, we won’t know for sure until we have further details. Profitability is a function of victory rate and risk-to-reward tradeoff. It doesn’t matter if Peter wins Rs 20 and loses Rs 80; he still loses Rs 60. If Molly wins Rs 50 and loses Rs 10, she has a net profit of Rs 10. Even though she has had fewer victories, she is in a better position than she was before. Even if there are only a few winners in a deal, it can still be profitable.

    In conclusion

    Traders can use a wide range of tools and principles from technical analysis. There are successful traders who do not use it, and there are successful traders who do. Others argue that technical analysis is erroneous and theoretically unsound, despite the fact that many traders swear by it.

    Now that you have understood more about technical analysis, you also need to ensure that you use the best broker for trading with the lowest brokerage on offer. Zebu empowers your online stock trading journey with a state-of-the-art trading platform as well.

  • The 200 Day Moving Average And Everything You Need To Know About It

    The 200-day moving average, a simple line that is displayed across a chart, is considered an important tool for traders and investors to determine the trend of the market. The indicator shows as a line on a chart that rises and falls in sync with the stock, commodity, or other instrument being charted as longer-term price movements.

    Before you start investing or trading, always consider going with one of the best brokerage firms in the country like Zebu. As a top broker in share market we have created one of the best stock trading platforms, for you to use and invest.

    When the price is above the moving average, the 200-day SMA appears to act as an incredible support level, and when the price is below it, it appears to serve as a resistance level.

    The 200-Day SMA

    The 200-day SMA is often used in stock trading to detect the broad market trend. It covers around 40 weeks of trade. A company is generally regarded to be in an overall uptrend if its price continues above the 200-day SMA on a daily time period. A 255-day moving average, which covers the preceding year’s trade, is a popular alternative to the 200-day SMA.

    The 200-day SMA is a very long-term moving average that is frequently used in conjunction with other, shorter-term moving averages to display not only the market trend but also the strength of the trend as measured by the distance between moving average lines. Comparing the 50-day and 200-day SMAs, for example, is rather frequent.

    When moving average lines converge, it can imply a lack of clear market momentum, but increasing the distance between shorter-term and longer-term moving averages usually implies increased trend strength and market momentum.

    Death Crosses and Golden Crosses

    The 200-day simple moving average is regarded as such an essential trend indicator that a “death cross” occurs when the 50-day SMA crosses below the 200-day SMA, indicating a downtrend for the stock.

    In a similar vein, the crossing of the 50-day SMA to the upside of the 200-day SMA is known as a “golden cross,” and the stock is regarded as “golden,” or almost certain to gain in price, once this occurs.

    SMAs vs. EMAs Simple Moving Averages vs. Exponential Moving Averages
    It’s likely that the 200-day SMA has a self-fulfilling prophecy quality to it; markets respond strongly in response to it partly because so many traders and analysts value it so highly.

    However, some traders prefer to use the exponential moving average (EMA). An EMA provides a higher weight to the most recent trading days than a simple moving average, which is calculated as the average price over the selected time range. For example, the exponential moving average provides current prices a higher weighting than the basic moving average, which gives all values equal weighting. Technical analysts use EMAs and SMAs in comparable ways to recognise trends and identify overbought or oversold markets, despite the differences in methodology.

    How is the SMA calculated?

    The average closing prices of a security over a period of time are used to calculate a simple moving average (SMA). It’s used to smooth out price swings and provide traders a better understanding of trends and reversals.

    How do I find a stock’s 200-day moving average?

    With Zebull Smart Trader from Zebu, you simply have to change the time frame to 1 day and add the moving average indicator. In the settings, you can change the period to 200. This will overlay the 200 day moving average over your chart.

    As one of the top brokers in share market, we have created the best stock trading platform for you to invest in wisely. Our tool is designed to help investors and traders alike to analyse a company with a wide range of indicators and screeners as per your strategy. As one of the best brokerage firms in the country, we invite you to open a trading and investment account with us.

  • A Quick Guide To Price Action Trading

    Price action is the study of market price movement. Why not examine, analyse, and learn from the price itself?

    The price shown on a chart is based on the combined beliefs, knowledge, and actions of market participants. Buyers are in charge if prices rise. Prices falling suggests sellers are in command. In a sideways market, buyers and sellers cannot agree. Also, price action traders ignore fundamental events, believing the markets already know about them. For them, price movement is the best indicator. Price action is employed by everyone from ordinary investors to floor traders and even institutions. Price action is a fantastic approach to look at markets.

    Many believe that prices move based on public opinion. Because people can have opposing views while trading in the same market. There are two types of traders: those that buy an instrument when the price is approaching a resistance level, and those who wait to see if the price bounces off or breaks through. In any case, both traders appear to be wrong since they lack market knowledge and appear to be following the crowd. The financial markets are fundamentally unpredictable, making future price movements impossible to predict.

    Trading price action strategies requires the best Indian trading platform with a wide range of features. With Zebu, one of the best stock brokers in the country, your online stock trading journey will be drastically enha

    How to trade with price action

    Many price action trading methods use a two-step procedure to discover and exploit market trading opportunities.

    Find out what’s going on now.
    As previously stated, a market can go up, down, or sideways. Looking at the prices of various assets should reveal the market’s movement.

    Find the optimal trading moment.
    After determining the current market conditions, a trader looks for a profitable trading opportunity. If prices are rising, the price action should indicate whether prices will continue to rise or if a correction is imminent. For example, consider a price action trade in Reliance. Assume that INR 2,500 is a resistance. A price-action trader would wait for a break of INR 2,500 to buy Reliance. If it breaks out above INR 2,500, the stop loss would be below the previous support of INR 2,400.

    Most price action traders enjoy candlestick charts because they are informative and visually appealing. A candlestick shows the high, low, opening, and closing prices of an asset through time. A candle that closes higher than its initial price is green (bullish), while one that closes lower is red (bearish).

    By closely examining the prices, a price action trader can learn a lot about how the market operates. The size and information provided by a candle are determined by the pricing points used to create it. As a result, some candle types display bullish hammer, bearish hanging man, and neutral Doji. As time passes, a chart shows more and more candlesticks. When candlestick patterns appear on a chart, they reveal more price data.

    When employed correctly, candlestick patterns can show traders how the market moves like “confirmation, reversal, or neutral.”

    In any case, there are patterns that imply the dominating tendency will continue.

    Head and shoulders and double bottoms are reversal patterns that indicate the current trend is poised to reverse. Neutral patterns, like symmetrical triangles, can occur in any market and, while they indicate a major shift, they provide no direction.

    It’s more important to understand what they say than how they were made. Price action traders can utilise trendlines to find the right entry and exit.

    Price Action Patterns

    In price action tactics, you can find out what individuals are thinking by watching price fluctuations. These are some of the market’s most reliable price action setups.

    A long wick
    A candle has a body and wick(s). This is the distance between the opening and closing prices (the high and the low). Long wick candles are prized by price action traders because they reveal price movement. During that period, buyers tried to drive prices up, but sellers fought back, bringing prices back to where they started the day. A price action trader can now either back the sellers or wait for more proof. No matter how they seem, long wick candles are vital to price action traders.

    Inside bar
    Traders wonder if breakouts are legitimate when they occur. The term “within” refers to when one or more candles trade inside the major breakout candle’s high and low positions. This is called an inside bar. If an inside bar occurs after a breakout, it is a sign of the strength of the breakout according to price action theories.

    Trading Trendlines
    Trendline trading is the use of lines to determine the ideal places to enter trades in up or down markets. In an uptrend, a trendline is projected from a swing low to a swing high. It’s a “trend line.” Retracements to the trend line are effective entry points. In a ranging market, horizontal trendlines might identify support and resistance zones.

    Essentially, price action trading can be used to locate and trade low-risk, high-reward trades.

    If you are a price action trader or want to get started with this concept, you need the best Indian trading platform from the best stock broker to back you up. With our state-of-the-art platform, you can take your online stock trading to the next level. To know more about our products and services, please get in touch with us.