Tuesday, July 28, 2009

Four dimensions of technical analysis.

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Source: The Three Skills of top trading, p.59

A technical analyst can groups his analysis in four dimensions as

- price studies

- volume studies(on balance volume)

- time studies (cycles etc.. )

- sentiment/breadth studies (52 weeks nhnl index, upside volume downside volume, advances declines etc..).

those four groups will add different dimensions to your analysis. Do not only simply select a dozen of indicators in one group. Simple is better select one indicator in each group. so that you can track different dimensions of the market.

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