Technical Analysis in stock trading How?

Question

Hi Dears I want to know how and what is the basic of Techinical Anallysis. Please give ma a small lesson about DEMA, MACD, ZIG ZAG. Please dont forward me to any site.

Answer 1

What is a Moving Average:
Average of Closing price of a stock over a period of time is termed as Moving average. For example. If Stock ABCD traded as below, it's 3 day moving average is calculated as below.

Closing Price Day 1 Day 2 Day 3 Day 4 Day 5
--N/a-- 10.25 12.23 11.10 11.92 12.04
Simple Moving average(3 days) 0 0 (10.25+12.23+11.1)/3 = 11.19 (12.23+11.10+11.92)/3 = 11.75 (11.10+11.92+12.04)/3 = 11.69

The above is an example of one of the 2 kinds of moving averages available, Simple Moving average. Also known as DMA, 20DMA = 20 Day moving average. The other moving average is a lot complicated than this and is known as Exponential moving average(EMA). EMA is more accurate because of the smoothing constant it uses. So, in the case above, 3 DMA would be 11.19, 11.75, 11.69.

The most significant in moving averages are the 50 and 200DMA. Because they give a relatively medium to longer term picture of the stock.
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. One must always keep a close watch on these very important key levels, 50 and 200 DMA. At times, instead of 50 and 200 DMA, 50 and 200 EMA serves the purpose. Hence, it is always a good idea to use both DMA and EMA when looking out for new entry points.

Conclusion. Sell if we cross below 50 DMA and stay below it for a few sessions. Short if you wish to. Buy if we cross above 50 DMA and stay above it for a few sessions. And make sure to place your stops around the 50 DMA, long or short.

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I know you are fed up with references to sites. But it is a complicated matter and cannot be communicated wihout incorporating charts etc. I tried MACD andhad to delete charts and relevant material. Charts cannot be put through yahoo!answers.
Kindly refer to site : http://stocks.dlngroup.com/education/main.php

Very expressive and purposeful articles it contains. Please study and be benefitted.