Strategies Related to Indicators of Technical Analysis

Technical analysis is the most preferred way of trading in the Stock market. There are more than dozen of indicators which are studied in the Technical analysis.

How Parabolic SAR can be used in conjunction with the other indicators to generate accurate Free Intraday tips. The indicator can be used to generate accurate intraday trading tips and equity tips in the form of buy and sell calls.

The parabolic SAR is a trend following indicator. It indicates the current trend and helps in following the trend. It is shown by the black dots on the price versus time graph. The arrangement of graph indicates whether the price movement is in uptrend, downtrend or no trend. Thus the trend following strategies can be use to trade effectively in the intraday as well as short term trading.

The parabolic SAR can be used in conjunction with other indicators like ADX and RSI. The ADX indicator determines the strength of the trend in place. It determines whether the trend is a strong trend or a weak trend. Thus the ADX and SAR can both be used together to generate confident signals for trading.

The parabolic SAR can also be used with RSI. The RSI indicator will help in determining the oversold and overbought levels. There are high chances of trend reversals at these overbought and oversold levels. Thus the trend reversal signals can be confirmed from both the RSI as well as Parabolic SAR.

There are many ways to trade in the Stock Market. The technical analysis is one of the most important ways of trading in the Stock Market. There are more than dozen of indicators which are studied in the Technical analysis. There are two broad categories of indicators in the Technical analysis. The momentum indicator and oscillator indicators are the main categories of the indicators present. The momentum indicators are usually the trend following indicators and represent the present trend. The oscillators are usually the strength index and determine the strength of the trends. The momentum indicator give signals about the trend following and consolidating the buy and sell signals based on the current trends. The oscillators give potential signals about the trend reversals.

The common momentum indicators include the moving averages, MACD and parabolic SAR. The MACD stands for moving average convergence and divergence. The moving averages are also of two types, the simple moving average and the exponential moving averages. The simple moving average gives a slow response as compared to the exponential moving averages.

The common oscillator indicators include the RSI and Bollinger bands. The RSI stands for the relative strength index and it takes a value between 0 and 100. The value of RSI near 30 indicates the oversold levels and the value of RSI near 70 indicates overbought levels. The overbought and the oversold levels are the potential chances of trend reversals. Similarly Bollinger bands are also oscillators which gives buy and sell signals on breakout of price levels.

Which Mutual Fund Calculator Should You Use?

There is no dearth of financial calculators available on the internet and sometimes novice investors get baffled by the sheer number of calculator links that come up for a simple search query like ‘goal sip calculator’ or ‘goal calculators’. How does then one choose the calculator that will precisely provide an answer to what the investor was looking for in the first place?

There are many calculators available on the internet that can help you find answers to some of your financial planning queries. But here is a list of the basic must-try calculators that everyone should try because these will help you understand the need for a financial plan in the first place and how should you start working towards your financial goals in life.

Inflation Calculator
This calculator will help you do some reality check in life. If you think that you are doing well in life, you have a stable source of income that gives you a decent lifestyle while you still manage to do a bit of savings, then this calculator is going to throw up some surprises. The inflation calculator helps you find the amount you’ll need in future to meet your current expenses or how much will an expense costing say Rs. X today cost you after certain no. of years. Historic data shows inflation rate has averaged 7.7% in our country for the period 1969 to 2013. Now you can imagine how inflation can dent your savings in a big way. Hence you need a smart investment plan to beat inflation in the long-term. Let’s take an example to simplify it for you. Suppose you want to buy a SUV 4 years later that is costing 10lakhs today. You’ll need 12.16lakhs to buy the same SUV after 4 years if inflation averages 5% during this period. Actual inflation could turn out to be higher than our assumption in which case, you’ll need more than 12.16 lakhs. For instance, if inflation turns out to be 6% instead of 5%, you’ll need 12.62 lakhs for the car.
Goal SIP Calculator
This calculator is the next one you should try once you have figured out how much your future expense for a particular goal requires after adjusting for inflation. It could be a SUV for yourself or a medical degree for your teenage daughter or simply a family vacation aboard after few years. The Goal SIP Calculator helps you calculate the monthly SIP amount you need to invest in a mutual fund over the goal horizon so that you can meet the future expense with ease when it comes due. You need to put the future value of your goal, the time period over which this goal needs to be achieved and the rate of return you expect your investment should give you. Don’t forget to add the inflation rate to your expected return else you’ll be staring at a huge shortfall when you need to fulfill the goal. In our example, our SUV would require 12.16 lakhs in four years from now at 5% inflation. Thus, you can set goal amount as 12.16 lakhs, time period as 4 years and expected return as 15% which includes 5% inflation. Expected return is your expectations from the investment you are making and will vary for each person. If you are investing with a conservative approach in a balanced fund or fixed income fund, you must lower the expected return as compared to your expectation from an equity mutual fund. The calculator gives you a monthly SIP amount of Rs. 18,642 in our example. This is the amount you need to invest in a mutual fund through monthly SIP where you expect to make 15% annual return.
SIP Calculator

If you are one of those smart investors who has already started planning for his/her life goals and have a few SIPs in place, this calculator is the one for you. It’ll tell you the future value of your SIPs and you can compare that with what the inflation calculator gives you. If the future value of your SIP comes out to be more than what the inflation calculator gave you for the same goal, you are really smart! But if the future value given by the SIP calculator turns out to be lower than what the inflation calculator shows, you really need to step-up your SIP now else you will be staring at a shortfall when the time to fulfil your goal comes.