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Technical Analysis Characteristics
1 - Price
How to recognise trends
Golden Rule of Technical Analysis
Trade the Trend
UPTREND
- every peak/high is higher than the previous peak/high.
- every trough/low is higher than the previous trough/low.
DOWNTREND
- every peak/high is lower than the previous peak/high.
- every trough/low is lower than the previous trough/low.
2. Trade Volume
What is the Trade Volume
The trade volume is the number (total) of securities traded.
When trading, it is important to keep in mind that trends do not last for long and are limited too a time period.
3. Time Period
- Long-term trend (one year or more)
- Intermediate trend (two to tweleve months)
- Short-term trend (one month or less)
Analysis
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