Objects of Technical Analysis

There are four main objects, which are exploring the technical analysts. These include price, volume, time and mood. Their analysis is directed at the most widely used today, the technical indicators. Many modern technical analysts use only a small number of indicators, completely ignoring the various factors analysis. This seems to create a table for two or three feet. He may stand for some time, but will not be sufficiently stable that it can be moved or put heavy objects on it.
Since the purpose of any market analysis is to obtain profits from the difference between the buy and sell prices, the price is the most important of its object, and it is not surprising that it is based on the most types of market analysis. Widely used models of prices, like triangles and gepy. Enjoys the moment of measuring price: RSI, the rule changes and some others. Constantly developing new ways of smoothing market noise, such as systems based on exponential moving average.
The volume is the next most important object of study. It is important to measure the extent of participation of players in any market movement. In doing so, used terms such as liquidity, open interest and the breadth of the market. Liquidity appreciated how easy it is to conclude a transaction and the amount of catalyst required to cause a change in the price. The higher the liquidity, the easier it will get a competitive price and easier to buy and sell large amounts of shares.
Open interest, which is usually characteristic of commodity futures markets, evaluates the number of participants to invest in the discovery of long or short positions. «Unsold shares» in the stock market can not be equated with open interest. This indicator reflects the number of shares you can buy (without short sales). Reasonable action - this is potential, ie the action that may be offered for sale.
Width cover issues such as the degree of participation of different sectors of the market at any price movement, ie the amount of money entering the market or exit from it.
Next object - this time. The accumulation, distribution, «bychi» and «bear» periods exist in all markets, and each of the stages continues for some time. Together they form a market cycle, and the knowledge of the extent to which period the cycle is now in the market, helping to make the right investment decisions. In addition, the relative duration of each cycle, and their Duration tell where the market is moving. Seasonal analysis of agricultural products begins with the season of growth continues in the harvest season and the season ends in the sale of these products, and it can be seen in all markets. Economic and political cycles affect financial markets, because they change the movement of capital and production volumes.
The most unpredictable scope of analysis - this analysis of mood. It covers areas such as degree of speculation, opinion and consensus. The mood is assessed relative to the intensification of the speculative market instruments such as options, as well as determined «bychimi» tendencies of investors. Both are based on the theory of «the burning match», according to which the flame passes from investor to investor, until no one wants to either take over. Whoever is the last burn. In markets where the spread of «bovine» mood is, finally, a time when everyone had already bought, so no one person, who could sell those who do not have time. Lack of demand means the completion of growth of prices. Subjectively, it can also be represented in the media as the latest news on the «bull» nature of the buyers of newspapers and TV. But do not forget a simple rule that when the public has come to a consensus about the «bovine» market has remained willing to buy.