A technical analyst tends toA) employ multiple market measures in his/her analysis. B) concentrate on a sole market measure to determine market signals. C) concentrate solely on buy signals in the market. D) forward test their theories to validate their validity.

Question

Business

London Kirby

3 December, 15:10

A technical analyst tends toA) employ multiple market measures in his/her analysis. B) concentrate on a sole market measure to determine market signals. C) concentrate solely on buy signals in the market. D) forward test their theories to validate their validity.

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Answers (1)

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Jaylon Carson · Answer 1

The correct answer is A) employ multiple market measures in his/her analysis.

Explanation:

The technical analyst is engaged in the activity of preparing charts and tables in order to predict future market trends. Historical financial data is used as the basis for graphics activity. The technical analyst can collect data on any stock, bond or raw material and the plot of the information in a model that can be easily understood by almost any investor.

Technical analysts argue that by plotting the past financial activity of a given value it is possible to identify recurring trends. Part of the process involves identifying the intervals between the rise and fall of the value per unit, as well as the real increase and the fall in prices. This strategy is considered by a technical analyst within the graph so that it is possible to determine when to buy or sell the security and make the investor increase his earnings instead of receiving a blow when the unit price begins to fall.