A trend refers to the direction of prices. Rising peaks and troughs constitute an up trend; falling peaks and
troughs constitute a downtrend that determines the steepness of the current trend. The breaking of a trend
line usually signals a trend reversal. Horizontal peaks and troughs characterize a trading range.
Moving averages are used to smooth price information in order to confirm trends and support and
resistance levels. They are also useful in deciding on a trading strategy, particularly in futures trading or a
market with a strong up or down trend.
The most common technical tools:
Coppock Curve is an investment tool used in technical analysis for predicting bear market lows.
DMI (Directional Movement Indicator) is a popular technical indicator used to determine whether or not
a currency pair is trending.
Unlike the fundamental analyst, the technical analyst is not much concerned with any of the "bigger
picture" factors affecting the market, but concentrates on the activity of that instrument's market.
troughs constitute a downtrend that determines the steepness of the current trend. The breaking of a trend
line usually signals a trend reversal. Horizontal peaks and troughs characterize a trading range.
Moving averages are used to smooth price information in order to confirm trends and support and
resistance levels. They are also useful in deciding on a trading strategy, particularly in futures trading or a
market with a strong up or down trend.
The most common technical tools:
Coppock Curve is an investment tool used in technical analysis for predicting bear market lows.
DMI (Directional Movement Indicator) is a popular technical indicator used to determine whether or not
a currency pair is trending.
Unlike the fundamental analyst, the technical analyst is not much concerned with any of the "bigger
picture" factors affecting the market, but concentrates on the activity of that instrument's market.
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