REGARDING THE INCREASE OF SHARE CAPITAL

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What is technical analysis and what are the advantages and limitations of this approach to analyzing investment profitability? You will learn this from this article. Technical analysis of financial markets – topics discussed: Technical analysis of financial markets Technical analysis indicators Advantages and disadvantages of technical analysis Summary Technical analysis of financial markets When investing in financial markets, technical analysis is often used . It is used to track trends, prices and volumes purchased or sold financial instruments , raw materials, currencies, etc. in a given period.

It assumes that historical data, transactions and price fluctuations may indicate certain changes in the future. This is a valuable philippines photo editor perspective useful when making investment decisions. It can complement fundamental analysis , providing a more complete picture of the stock market situation. Assumptions of technical analysis In order to understand market sentiment, you must make several assumptions specific to technical analysis. These include: Price fluctuations depend on trends, which means that prices tend to fall/rise for a certain period of time. Prices depend on the relationship between demand and supply, as well as other economic and political conditions, etc.



The investment decisions of people operating on the stock exchange also manifest themselves in certain patterns and attitudes. Depending on the market situation, most people act in a similar way, impulsively and under the influence of emotions. Technical analysis indicators To study financial markets and draw conclusions based on the collected data, the following indicators are tracked: Moving average – presents the average price of a financial instrument in a given period; Trend line – determines the direction of movement of a given instrument or even the entire sector.