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Technical analysis characteristics

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Technical analysis
About tech analysis Trend Characteristics Support and resistance

1 – Price

How to recognise trends

Uptrend

  • every peak / high is higher than the previous peak / high.
  • every trough / low is higher than the previous trough / low.
brokersnest-chart

Downtrend

  • every peak / high is lower than the previous peak / high.
  • every trough / low is lower than the previous trough / low.
high/low-brokernest

2 – Trade volume

What is the Trade Volume

The trade volume is the number (total) of securities traded.

chart-brokernest

3 – Time period

When trading, it is important to keep in mind that trends do not last for long and are limited to a time period.

  • Long-term trend (one year or more)
  • Intermediate trend (two to tweleve months)
  • Short-term trend (one month or less)