Technical analysis of the securities market, some measurement techniques

Such a procedure, as a technical analysis of the stock market, in the simplest sense, is a study of the status and trends of the dynamics of the stock market.Theoretical and methodological basis of this study is the recognition of the principle of external disturbances of the market.According to this principle, the result of such disturbances, trading volume change indicators and, accordingly, the price level indicators.That is why technical analysis of the securities market implies the possibility of ignoring the study of the nature of the external factors, and paying the greatest attention the dynamics of indicators of the market.At the same time to avoid the cumbersome procedures of the study should be a clear distinction between those sources that use a strategic analysis of the market, and which should be used when analyzing the technical.Strategic, as such, intends to use the annual reports, internal media companies, media publications, interviews with experts, exhibitions, benchmarking interviews, various databases from independent sources, the analysis of trade policy and others.

Another feature that involves a technical analysis of the securities market, is that the previous settings of the market from time to time may be repeated, and this makes it possible on the basis of a comparison of the dynamics of these states to identify some tendencies of its development, which is very important for economicforecasting its condition in future periods.

market situation is always determined by the nature of the interaction between the two most important indicators of its condition - supply and demand.That is why technical analysis is intended to accurately determine the parameters of a nonequilibrium state: the time, the magnitude, frequency of occurrence, risks and the depth, etc.As a rule, in contrast to the strategic analysis, to give technical answers to questions about short-term trends in market dynamics.

main method of technical analysis is the compilation and comparison of the graphs of price trends.They are recognized indicators of time and price.The researcher determines the amount of acceptable change (step dynamics), which should be taken into account, and then adjust the company's activities or businesses, or those whose values ​​can be neglected.

As a rule, these charts reflect the limit values.

line resistance value at which the asset prices should not increase.In technical analysis assumed that if the price of the asset goes beyond the value of the resistance line, then it is a sign for her shopping.

Support Line is a measure that indicates that the price of an asset should not be reduced more.In this case, the technical analysis of the securities market "signals" about the need for the sale of shares.

also common methodology, which is widely used as technical analysis is carried out, is a method of measuring the price trend, which received the name of "head and shoulders".This name came from the appearance of the charts obtained when displaying values.It contains three peak performance: one high (greater by value) and two (for the sides of the high), smaller values ​​- head and shoulders.At the bottom of the peak "shoulder" and conducted signal line resistance, which speaks of the need to change the trend or its preservation.This method is very common and effective, such as the need to analyze the market for goods, because it gives a quick and fairly accurate representation of the behavior of the consumer market.

addition to study charts and graphs that reflect the behavior of the market, its methodology and the study provides an analysis of indicators such as the growth of trade, the determination of the number of transactions with assets.

There is also the concept of the opposite opinion, which assumes that the investor should act contrary to the data of technical analysis, that is to take steps contrary to the current general state of the market and even its trends.