The Technical Analysis for Gaining Profitability on Large Cap Stocks

Abstract: Investor always seeks for new information to have more information and for laying out money in the expectation of receiving more money in the future. Usually, stocks are classified in to three broad categories as income, growth and value. In which Growth companies are the one who reinvest their earnings back into the company as opposed to paying out dividends to continue spurring growth. During bullish trend, these stocks outperform value-based stocks because of environmental risk and the perceived low risk in the markets. On the contrary, growth stocks tend to underperform value stocks during bearish trend. This study aims to focus on strategically decide on buying and selling of growth-oriented stocks with the help of technical indicator named Bollinger's band and Momentum a two widely preferred indicators which when used simultaneously provides with a more accurate decision making.

Keywords: Stock, Technical Indicator, Bollinger Band, Momentum