The Financial markets are increasingly becoming volatile due to the changes that have been taking place in the business environment of the country. This business environment includes economic environment, political environment and various other factors. As the only thing permanent in the environment of the country is ‘the change’, it becomes very important to undertake a technical analysis study of the financial markets before taking any investment or trading decision.
Technical analysis refers to methodology used for forecasting the changes in pricing by studying the trends in market. It includes analysis of earnings, dividends, new products, research, etc. through the use of various methods, tools and techniques for example by use of charts. It studies the demand and supply forces in the market and based on the data so collected, predicts the future pricing. The timeframe for this study can be week, days or even minutes hence it can be said that it is a dynamic study. It assumes that
1) Everything is discounted in the market – This means that the price of a security be it stock, futures and commodities, fixed income securities, forex or any other security for that matter, at a particular time, is the reflection of every factor that affects the company in some or the other way and therefore separate study of each factor is not required. Studying the stock’s price alone suffices.
2) History tends to repeat itself – It believes that history tends to repeat itself as regards the price movements, i.e., the response to a particular stimuli remains the same over a time. Charts are used for analysing the movements of price and the trend thereby, in the market.
3) Price moves in trends, that is, the past data in pricing is a true indicator of the future. There are 3 types of trends – Uptrends, i.e., in which individual current prices are higher than the previous ones; Downtrends, i.e., in which individual current prices are lower than the previous ones and horizontal trends in which there is not much of a change.
Such analysis becomes all the more important due to growing complexity of the stock market. Due to its utmost importance it becomes necessary for the people to be trained in this methodology. This has given rise to many technical analysis training institutes, VTIPS being one such institute. VTIPS not only provides training in technical analysis but also provides SEO (Search Engine Optimisation) training and host of other professional courses related to finance. SEO training in Lagpat Nagar institute is Delhi based and is placed at Lajpat Nagar. The institute has emerged as one of the prestigious centres of financial education in India.
The institute has been in existence for three years approximately. It possesses excellent infrastructure and facilities, well qualified and experienced faculty, curriculum designed by national and international organisations and provides specially designed study material and text books. Apart from this it also provides placement assistance on the completion of the course. With the growth of such well equipped institutes, we can hope to educate at least 2/3 rd of Indian population as regards financial aspects, technical analysis and SEO.