Technically Weak Market

DEFINITION of 'Technically Weak Market'

A market in which open interest is increasing and prices are decreasing, or in which open interest is decreasing and prices are increasing. A market in which trading volume does not correspond to price where increasing volume accompanies decreasing prices or decreasing volume accompanies increasing prices.


Also known as technically weak.

BREAKING DOWN 'Technically Weak Market'

Technical analysts are concerned only with the price movements of securities. Unlike fundamental analysts, they do not care about the characteristics of the company that has issued the security. Technical analysts follow trends in a security's supply and demand, as shown on price charts, to choose the most profitable times to buy and sell.

RELATED TERMS
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RELATED FAQS
  1. Why is trading volume important to investors?

    Learn about trading volume, its importance and how investors analyze volume to confirm a trend or reversal in a security. Read Answer >>
  2. Why is the Uptick Volume important for traders and analysts?

    Find out why technical analysts and traders keep track of uptick volume to better assess the momentum of a stock's price ... Read Answer >>
  3. Why did my Social Security benefits decrease?

    I am now 80 years old and I retired at 70.  For years, my social security benefits have increased somewhat. I would ... Read Answer >>
  4. What is the Uptick Volume formula and how is it calculated?

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  5. What does a falling open interest on a stock signal?

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  6. How can I calculate a company's forward p/e in Excel?

    Discover why trading volume is higher when the price of a security changes. Supply and demand is the mechanism through which ... Read Answer >>
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