Forex market main "Diffusion Index" ka use aur importance.

Diffusion Index.
Diffusion index ka use technical analysis main kia jata hay. Basically aik diffusion index un stocks ko measure karta hay jinki price main advancing a rahi ho. Diffusion index market ki overall strength ko measure karny kay liye mufeed hay. Q keh ager ziadah stocks main price advancing show ho to yeh strong market ko indicate karty hain. Aur ager fewer stocks ki price main izafa ho to yeh market ki weakness ka bataty hain. Stock market main diffusion index ko generally day by day main measure kia jata hay. Advancing stocks woh hoty hain jo sabqa period ki closing price say ab upside chaly gaye hon. Is say yeh bhi matlab lia jata hay keh kitny business cycles indicators aik sath chal rahy hain jo keh economy ki strength ka andazah lagany kay liye mufeed hain.





More Consideration.
Diffusion index kay through traders business cycles indicators ko behter andaz say parakh sakty hain. Diffusion index different ways say calculate kia jata hay aur percent main express kia jata hay. Rising indicators 1 ki value daity hain, unchanged 0.5 ki aur falling indicators zero value daity hain. Misal kay tor per ager ham 10 indicators day 7.5 value laity hain to jab isko percentage main layain gy to yeh 75% ho jaye ga jo keh economic growth ko zahir kary ga.

Limitations of Diffusion index.
Diffusion some times kuch stock exchanges per work nai karta. Maslan jab NASDAQ main stocks rising kar rahy hon laikin baqi unlisted stick exchanges ka data mukhtalif hota hay jinko diffusion index phir bhi 1 show kar raha hota hay. Jo keh aik long time tak apni value change nai karty. Jis say is indicator ka faidah nai hota. Iskay ilawah iski divergence say poor timing signals generate hoty hain.

Re: Forex market main "Diffusion Index" ka use aur importance.

Yes diffusion index asy number of stocks ko measure karta hai jin ma momentum positive hota hai. Ye kisi pair ya stock ki overall strength ko show karta hai. But kuch stocks asy bi hoty hain jin ma weaker momentum hota hai. Agr stocks ki bat ki jaye to en ma day to day diffusion index ko measure kiya jata hai. Advancing stock esy stock ko kehty hain jis ma market ki price closing price sy higher move kar jata hai. Diffusion index business cycle indicators ko refer karta hai. Ye method bhot useful hai economy ki strength ko measure karny kay laye use hota hai.



Some key points.

Diffusion index kisi pair ya commodity ki common tendency kay statistics ko find karny kay laye use kiya jata hai. Rising index diffusion ka matlab rising stock ko indicate karta hai jb wo higher move kar jata hai. Jis ma stocks ki positivity ko show kiya jata hai or ye higher movement ko show karta hai. Decrease diffusion ka matlab hota hai bhot kam esa stock hai jo higher move kar raha hota hai. Ye show karta hai kay buying pressure decrease ho rha hai or selling pressure increase ho rha hai so asy ma trader ko sell ki trade ko open karna chahe. Ik or eska important use ye hai kay ye divergence ko find karny kay laye bi use kiya jata hai. At the same time ye market ki weakness ko bi show karta hai.



Understanding the diffusion index.

Diffusion index ko ham advance or decline index kay name sy bi janty hain. Ye bhot sary tools ma sy ik bhot zayada use hony wala tool hai jo market kay analysis ma use hota hai. Ye trader ko market kay bullish or bearish trend ki bi information deta hai. Agr generally bat karyn to diffusion index stock index kay sath sath move karta hai. Jb stock index strong hota hai to ye uptrend ko indicate karta hai. But kahe bar esa bi hota hai kay diffusion index fall karna start ho jata hai even tb jb stock index rise kar rha hota hai.