Market Trend Analysis

 

The market trends analysis (sometimes referred to as technical analysis) focuses on the market behavior. The main goal is to know the current market trends. This kind of analysis helps traders in picking up the best instruments to invest. It is used in various time horizons. Stock trends can be supported with charts, market indicators and other analytical tools .The market trend analysis researches the size of turnovers and the data related to the changes in prices. Stock trend analysis is basing on three rules::

The market discounts information

The market discounts information based on the assumption that the factors which have relevant impact on the price will be included in this price. By factors we understand the condition of economy, political situation or information about the stock market companies. The behavior of a price reflects changes in the relation between supply and demand. A trader can study charts and indicators in order to predict incoming trends. It helps him to understand the market behavior.

Prices in relation to trends

A trend indicates a direction of price movements. Studying trends allows traders to be more aware of the current market situation. According to some of the stock market gurus: investors should buy when there is a rising trend and sell when the trend is decreasing. The instrument prices relate to three types of trends (rising, decreasing, horizontal) a trend lasts until there is a market signal indicating a trend reversal.

History sometimes repeats itself

The market trend tools help investors in spotting the appearance of trends. Such tools are basing on the past tendencies. It is believed that the investors’ behavior is predictable and that they act in accordance with certain schemes. That is why some people profit from predicting the future trends.

The Stock trend analysis software supports traders by showing them the current stock market situation together with the trends and that is exactly what we are doing

 

 

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