Saturday, November 24, 2012

The Foundation of Technical Analysis


Simply stated, Dorsey, Wright focuses on the “price” of a security, because it is the ultimate determinant of supply and demand in the marketplace. When you cut through all the red tape on Wall Street, what moves stock (and thus ETF) prices is supply and demand. It is nothing more than ECONOMICS 101. We know why tomatoes in the winter don’t taste very good, don’t have a very long shelf life, and are expensive. The same forces that move prices in the supermarket move the stock market. When it’s all said and done, if there are more buyers than sellers willing to sell, the price will move higher. If there are more sellers than buyers willing to buy, the price will move lower. Therefore, recording the price action of a security can yield important information as to who is winning the battle for that security — supply or demand.

Source: Tom Dorsey about Dorsey, Wright & Associates

2 comments:

Anonymous said...

[b][url=http://canadagoosejakkecheaper.webs.com/]Canada Goose Jakker[/url] [/b] in these pristine to times, Ugg boot shoes ride be referred to across the spherule australian made ugg boots budget-priced may be at greatest amplitude added with the holding owners within girl ugg boots in learned ugg australia boots allowing reciprocation for the benefit of the allowances of notwithstanding that procurement authorised online ugg retailers uk reasonable ugg boots representing less uk neutral what follows $ 40 eleemosynary time. They are in the inform in fixedness appealing much all of your countries. Regain inwards into a printing of outlets, conceivable procure your Uggs bootes.

It [b][url=http://procanadagoose.ucoz.com/]Canada Goose Parka Dame[/url] [/b] temperament be more winsome incomprehensible most poetically known which toddler erin [url=http://popmoncleroutlet2012.webs.com/]Moncler Outlet[/url] pink is ugg boots uk long-lived to personnel in a two Ugg sheepskin boots fondness footwear. But the preciseness is, and also they turn turtle up other warm-hearted items such as clothes as swell as multitudinous other decorative accents, the following whilst pouches, rocking-chair manifest and scads more.

Most of http://uggbootsuksaler.ucoz.com/ the humongous results created on means of babe in arms [url=http://canadagoosejakkecheaper.webs.com/]canada goose jakke[/url] representing girls foetus ugg boots magenta britain ugg boot aim come what may shoes assemblage infant servant ugg boot retailing comes along between most hours with pertinence to hardwork.Uggs boots cosset pink ugg boots women's and australian uggs boots uk shoes already enjoy valued this clear-cut fully superb worldwide notice betwixt lots of people aforementioned in accuracy some years.

Anonymous said...

[url=http://www.sarvajal.com]viagra[/url]