In the age of digital India, everything is done online whether be banking, trading, learning about something etc. Trading in the stock markets has also shifted from trading floors to online platforms. Traders can also research for the trading stocks using applications on their phones or online. One such research tool is StockEdge.
StockEdge is one of the best Indian trading apps that help us in filtering stocks using technical and fundamental scans for trading in the stock market. When we trade in the stock market, it is difficult to analyze 1000 stocks that are listed on the stock exchange. So, with the help of StockEdge, we can filter stocks in which we can take a position.
Now you must be wondering how we can use this share trading app? So, in this blog we will help you how to do trading in the stock market using StockEdge:
Parameters to check for trading in the Stock Market:
1. Prices:
Before trading in any stock, we need to check first the price movement of that particular stock in which we want to trade. We should check whether the stock is at 52 weeks high or low that tells us how bullish or bearish the traders are for that stock. We can check the prices of any stock using StockEdge. Below we can see the price movement of Reliance India Ltd.
2. Charts:
The next step is to analyze the technical charts of those particular stocks. For short term trading, we should use short time frame charts like hourly or daily. We can analyze different types of technical charts like line charts, bar charts, candlestick charts and so on. Candlestick charts help us in visually analyzing whether the bulls are moving the prices or the bears. There are also certain candlestick patterns like bullish or bearish reversal patterns that tell us whether the trend will continue or reverse. Below we can see the candlestick chart of Reliance India Ltd.
3. Deliveries:
One should check whether there is volume or not in that particular stock in which we are planning to trade. Volume helps in determining whether the stock is liquid or not. If there is less or no volume in the stock, then we cannot easily buy or sell the stock at our desired price. We can check the deliveries and volume with the help of StockEdge as shown below:
4. Technical:
We also need to check the technical levels of the stock such as how it has performed in the past, the support-resistance levels and other technical indicators such as Relative Strength Index, Stochastics, William % R etc. StockEdge makes it easy for the traders to analyze these levels as it directly tells us the values. So, we don’t have to look at the charts for this information as shown below:
5. Technical Indicators:
When analyzing technical charts for the trading purpose we need to analyze certain technical indicators as they tell us when to enter or exit that particular stock. Technical indicators are categorized into momentum, volume, volatility and trend indicators. It is important for the traders to analyze these technical indicators before taking any trading calls. But one should note that these technical indicators should be used with the prices action on the charts as sometimes it may give false signals. StockEdge helps us in filtering the stocks which have a positive or negative outlook in the terms of these technical indicators as shown below:
6. Future Open Interest:
If you are trading in the derivatives market, you need to analyze open interest as well. Open Interest refers to the number of outstanding contracts in the market. For every future contract, there should be a buyer and a seller. So, when the buyer and seller take a new position in the market, the open interest increases. Open Interest helps us in predicting the future price direction, whether the ongoing trend will continue or reverse. We can easily analyze open interest using StockEdge as shown below:
7. Option Chain:
Analyzing the option chain is also important when it comes to trading in the stock market. The option chain contains a list of all available options contracts for a specific security. It shows all the puts, calls, their expiration, strike prices, volume and open interest for the specific underlying asset within a given expiration period. You can also analyze the option chain in the StockEdge app as shown below:
Bottomline:
So, we can conclude that it is one of the best trading research app as it helps us in the process of selecting stocks for trading. Other than the above features, there are lots of features available in StockEdge like the daily updates with the help of which you can go through the news of the stock market in a one-liner format. You can also make use of the ready investment strategies and business houses that will help you in scanning down the stocks.
