Like for any other scrip, is charts available for Mutual Funds also? Can technical analysis be applied on Mutual Funds?
You cannot apply TA on Mutual Funds for the following reasons…
TA works well when there are large number of participants influencing the prices of an asset. Mutual Fund is controlled by a single fund manager.
Mutual Fund is a portfolio of stocks - The fund manager decides which stocks to buy and sell
Open, high, and low data for MF is not available. Only the closing NAV is published…even if were avilable, for reasons 1, and 2 you should not be applying TA to MF’s
Technical analysis can be applied to any instrument and hence can be applied to MFs as well. But one has to understand the limitations.
These scripts are not actively traded and hence as Karthik mentioned, OHLC data is not available. One has to rely on NAVs only.
Realtime analysis cannot be done but only EOD analysis can be done.
These scripts are not readily available in the charting packages. But one can always create these scripts and import historical NAV data. Most of the charting packages allow this.
One can then use technical analsys features like Relative Performance, Moving Averages etc. Any indicator requiring OHLC data like ADX, ATR will not work.
Yes, you can. But not an easy task, you first have to download the NAV values of Mutual fund from AMFI website and it has only close values. So you just import this value into Amibroker and do your technical analysis which takes only close value as input parameter.
I have answered in detail how i used a simple Moving average to reduce the risk for mutual fund investments, here Use this simple rule to reduce your risk with Mutual Funds Investment