Objects Of Technical Analysis

June 29th, 2015 by Rosemary
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There are four main objects that are studying technical analysts. These include price, volume, time and mood. In their analysis is directed most widely used today in technical indicators. Many of today's technical analysts use only a small number of indicators, ignoring these or other factors analysis. It's like creating a table for two or three feet.

He can stand for a while, but not will be stable enough that it can be moved or put heavy objects on it. Since the purpose of any market analysis is to obtain a profit from the difference between the sales and purchase prices, the price is the most important to its object, and it is not surprising that this was the most species based market analysis. Widely used models such price behavior as triangles and gaps. Popular gauges since prices: RSI, the rate of change and some others. Continually develop methods of smoothing market noise, such as systems based on exponential moving average.

Volume is the next most important object of study. It is important to measure the degree of participation of players in any market move. It uses terms such as liquidity, open interest and the breadth of the market. Liquidity assesses how easy it would be a deal, and what amount of catalyst needed to trigger a price change. The higher the liquidity, the easier it will get a competitive price and easier to buy and sell a large amount of shares. Open interest, which is usually characteristic of futures markets, assessing the number of participants invested in the discovery of long or short positions.

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