ZU DEN KURSEN!

Quantitative Methods - Underlying assumptions

Kursangebot | Quantitative Methods | Underlying assumptions

Quantitative Methods

Underlying assumptions

Merke

Hier klicken zum Ausklappen

{*LOSnr68*}
Explain the underlying assumptions of technical analysis.

We must keep in mind four assumptions about technical analysis:

  • Only supply and demand can influence the market value of a good or a service.

  • Supply and demand are themselves influenced by many rational and irrational factors.

    • The market weighs these factors continually and automatically.

  • Prices for individual securities

    • tend to move in trends and

    • persist for some period of time.

  • Prevailing trends change when influenced by changes in supply and demand.

    • These changes can be detected in the actions of the market itself.

The last two aspects are controversial among technicians and non-technicians; the first two are not.