CONCLUSION

Trading in stock market has never been an easy task. Millions of investors have been losing
their money trying to guess stock price movements with lot of ambiguity and inadequate
knowledge. Technical analysis is a useful technique in guiding investment decisions. From
the study conducted on technical analysis of stocks we conclude that, technical analysis helps
investors in analyzing the scrips based on the charts and technical tools to earn profitable
income.
The movement of stock prices is subjective to various fundamental factors and the
economy as a whole. The price set by the market reflects the sum knowledge of all
participants. These participants have considered (discounted) everything under the sum and
settled on a price to buy or sell. The forces of supply and demand are which at work and
support in establishing the price. By exploring price action we determine which force is
prevailing. Technical analysis focuses directly on the base line: i.e. What is the price? Where
has it been? Where is it going?
Although, there are a few universal principles and rules that can be applied, it must be
kept in mind that technical analysis is more an art form than a science. As an art form, it is
flexible in its approach and each investor should use only those techniques which suit him or
her. Developing an approach of prudent trading takes time, plenty of effort and dedication,
but the rewards can be momentous. Again, it is important to have fine knowledge of the stock
markets which is the key to the success and stress should be on managing trading risk while
technical analysis helps you to control them.