Several of the stock market 'technical analysis' approaches are based on the underlying assumptions of cyclicity. These include the use of oscillators, moving averages and the Japanese Candlestick style charts. All of these indicators are different methods of analyzing and synthesizing market price and/or volume over time.
Moving Averages: There are many types of moving average indicators. Some moving average indicators such as the exponential moving average show a slightly different version of the moving average trend by smoothing out the short term fluctuations.
Oscillators: These illustrate the price and volume cycles thereby allowing the investor/trader to identify relevant peaks and valleys within the trend itself.
Japanese Candlestick Charts: This is a specialized type of price chart that provides more information about price activity than the standard "mountain" style chart used by many amateur investors.
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Friday, August 7, 2009
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