Topic_8_E1 - Topic 8 Exercise 1 Technical Analysis...

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Topic 8 Exercise 1 Technical Analysis Indicators Essentially, there are two ways of analyzing investments: fundamental analysis and technical analysis. With the former, investors try to calculate the value of an asset. With the latter, they try to focus exclusively on the asset’s price data. Technical analysis is based on the assumption that markets are driven more by psychological factors than fundamental values. Behavior finance or market psychology asserts that history and patterns tend to repeat. Numerous indicators are used in technical analysis. A discussion of various indicators can be found in the education section of sixer.com, which is a website dedicated to technical analysis. Enter the website and click on the education link at the top of the home page. Access the descriptions for Moving Average Difference Oscillator, Call/Put Ratio, Trin-Short Term Trading Index and Support/Resistance. Then, answer the following questions: 1. Describe the indicator known as the Moving Average Difference Oscillator and
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Topic_8_E1 - Topic 8 Exercise 1 Technical Analysis...

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