WritingSun Pharma May Go to ₹5,000 If It Stays Above ₹2,000 – A Trader's Personal Perspective (Part 2)Understanding Technical AnalysisTechnical analysis is one of the most widely used approaches among traders. Instead of trying to estimate the intrinsic value of a company, technical analysis focuses on price movement, trading volume, and historical market patterns.Many traders believe that price reflects the collective expectations of market participants. As a result, charts become a valuable tool for identifying trends,
Writing Sun Pharma May Go to ₹5,000 If It Stays Above ₹2,000 – A Trader's Personal Perspective (Part 2) Understanding Technical Analysis Technical analysis is one of the most widely used approaches among traders. Instead of trying to estimate the intrinsic value of a company, technical analysis focuses on price movement, trading volume, and historical market patterns. Many traders believe that price reflects the collective expectations of market participants. As a result, charts become a valuable tool for identifying trends, momentum, and potential support or resistance levels. However, technical analysis does not guarantee future performance. It provides probabilities rather than certainties. The Importance of Trend A common principle among traders is: "The trend is your friend until it changes." An upward trend generally consists of higher highs and higher lows, indicating that buyers continue to dominate the market. If this pattern remains intact over a lon...