The BSE Sensex is an index of shares that are traded on the Mumbai Stock Exchange (BSE). If you learn how to read the index's trends, you can find out when to buy, when to hold, and when to sell, which are the three most important pieces of information that every Indian stock market investor needs.
Every day, the performance and trends of the BSE Sensex index of the Mumbai Stock Exchange (also called the Bombay Stock Exchange) are posted on www.sharesdaily.in.
will see a number of metrics. The first is the percentage rate of change over the last 1, 5, 10, 60, and 250 trading days.
In the financial news, the words "short term," "medium term," and "long term" are often used without any real meaning.
definitions. Based on the sharesdaily.in analysis metric, they are:
The trend of the market over the last ten trading days is short term.
The trend of the market over the last sixty days is called the medium term.
The market trend over the last two hundred and fifty days has been long term.
From this, you can see that the market can go up in the short term and down in the medium term and so on.
When all three terms show positive numbers, the market trend is very strong in that direction, whether it's up or down.
In addition to the previous trends, the percentage change from the last trading day and the change over the last five trading days are shown.
The other important metric is the Volatility Barometer, which shows how far prices have moved over the last ten trading days. If the market is becoming less volatile, it is becoming more stable.
If it goes up, that means the market is getting less stable. In the future, a real number readout will be put in.
The best situation for investors is when both the short-term and long-term trends are going up and the volatility is going down. Here, you can both make money and feel safe. This is true for the market index, but not for each stock on its own.
Always keep in mind that all of this can be changed by sudden, unexpected bad things, so have a plan for getting out and a way to cut your losses. More on this is coming.
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