Technically Strong Market

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DEFINITION

A market in which both open interest and prices are increasing or in which both open interest and prices are decreasing. A market in which trading volume corresponds to price change where increasing volume accompanies increasing prices, and decreasing volume accompanies decreasing prices is considered technically strong.

INVESTOPEDIA EXPLAINS

Technical analysts try to profit from trends in the prices of securities. They believe that historical pricing trends tend to repeat themselves, and by using price charts to identify these trends they can determine the best times to buy or sell to make a profit. Technical analysts are not concerned with fundamentals like the quality of a company's product or service, or its management.







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