Technical Analysis Practices You Can Use In Dissertation

By | July 4, 2022

Analysis helps researchers to organize, summarise, and explore patterns to make decisions using historical data. On the same ground, technical analysis is another widely used methodology that allows analysts to make educated decisions in any field of interest. Lots of technicalities are involved in technical analysis practices; thus, for such analysis, analysts and students must polish technical analysis skills via reading books and online skills development courses.

In the dissertation, if you opt to evaluate the financial assets of a small or medium-size industry or want to explore something relevant to trading, then the analysis through trading charts, support and resistance, moving averages, and correlation is important. This article is all about using technical analysis practices for better use in dissertations. Let us first discuss the meaning of technical analysis:

Introduction:

Technical analysis practices include the study of patterns, charts, and graphs, especially in risk management and behavioral economics. Stated in another way, technical analysis is the estimation of financial assets by taking into account the historical market statistics.

Technical analysis practices never trust a norm that price movements in markets are random; they believe in periodically repeatable patterns and trends in price movements. Thus, market trend analysts use technical analysis practices based on three fundamental theories to forecast and analyze financial assets or securities: trends repeat over time, the market discounts everything, and price moves in trends.

Trends Repeat Over Time:

Historical data reveals that trends repeat themselves. So trend analysts use past trends to interpret future movements as an essential part of technical analysis practices. Most researchers prefer to get a PhD dissertation to help UK when working on these trends.

The Market Discounts Everything:

It simply reveals the fact that ‘everything you need to find regarding security can be found in market prices. That is why; the analysis of price charts and price movements is of utmost importance.

Price Moves In Trends:

It explains that the market prices of goods, services, and shares of an organization are likely to continue the past trends than move randomly.

For analysis of the price movements and financial data, the analyst (whether professional or dissertation writer) must use several technical indicators. Some of these indicators aim to determine the strength of a trend, while others focus on identifying the current market trends. The following are some common technical indicators, along with a brief description:

Trading charts:

Technical analysis practices include trading charts like line charts, bar charts, figure charts, point charts, and candlestick charts to describe trends and movements.

Trends:

Knowing the trends means understanding three types of trend lines, including uptrends, sideways, and downtrends. Uptrends aim to examine the highest ups and lowest ups in the charts, while the downtrends explain the highest lows and lowest lows. Sideways incudes little up and little down movements.

Support and resistance:

Support and resistance are two important concepts to study market trends for commercial and academic purposes. A support level is the one when the falling market reaches a certain point and then bounces back. In contrast, resistance occurs when a market hits a peak and then starts falling. The number of times a market hits support and resistance are the best indicators of a market’s health.

Correlation:

It aims to explore the relationship between movements that are highly dependent on each other. It investigates the reasons why the price of two or more assets moves in a similar fashion?

Moving averages:

Technical charts are not easy to understand. It includes many technicalities like spotting the volatility of price movements. Moving averages is important to make the process easier by removing day-by-day fluctuations and accurately reading price movements.

Importance Of Technical Analysis In Dissertation:

Dissertations are literary documents that help students to depict all their technical and academic skills not only to gain good grades and first division in degree, but it is an extremely good way to learn professional skills as well. For those who have a practical approach and have selected a dissertation topic to polish professional skills academically, analysing the market trends by using technical analysis practices is the best option.

Such dissertations may include any problem regarding economic behaviour, stock exchange, risk assessment or management, financial crisis or other problems to ensure better survival of an organisation by evaluating market trends.

In these topics, the technical analysis indicators can fix all analysis-related problems. Thus, drafting a dissertating by using technical analysis practices or indicators helps students get benefits such as developing professional market trend analysing skills academically.

Steps To Do Technical Analysis In Dissertation:

The dissertation includes an extensive word count divided into five chapters; introduction, review of literature, research methods, analysis and findings, and conclusions. For using the above-mentioned technical analysis in the dissertation, you must have to specify your research problem in chapter one and explore relevant literature and review them to give the historical overview in chapter two.

Chapter three must contain all vital information that others may use to replicate your study. Chapter four must conduct technical analysis by using the following steps, and chapter five must draw a conclusion based on the findings of chapter four.

  • Identify the trends using any technical indicator
  • Draw the support and resistance level
  • Find the entry and exit points
  • Perform the position sizing and risk management

Performing all these steps must include following a detailed guide and four very basic principles to effectively complete it. These four basic principles include 1) markets’ fluctuations between range contraction and range expansion, 2) trend continuation is preferable over reversal, 3) noting trends in climax or rollover, and 4) momentum precedes price.

Final Thoughts:

Technical analysis practices in most sought-after technique, especially in business and trading. It allows analysts to forecast future trends by using a wide range of technical indicators (most of them use historical data and trends in price movement).

In dissertation writing, you can use it by keeping in mind four universal steps and basic principles as described above. Overall, adding technical things to your dissertation is important to increase your worth, especially in professional life.

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