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Stock Market News and Timing Systems

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sittarajbhar
Stock Market News and Timing Systems

Stock action, as defined in Wikipedia, is "a visual or verbal interpretation of (a) the stock market prices on a specific date and (b) an overall trend of the stock market prices." Stock traders, both experienced and novice, use various strategies to interpret their stock's price movement. These strategies can be visualized in the form of charts, graphs, or line charts.

Stock Action Strategies

The major uses of stock action analysis are in the financial markets, specifically with regard to stocks that trade on the Over-the-Counter Bulletin Board (OTCBB) and the Pink Sheets. Intraday trading has become a popular method of trading stocks. When intraday trading, or short selling, is used it is usually done after the close of each daily trade. This short sale occurs when the stock being sold is valued at a lower price than the stock it is bought from within the same day. Short sales are more risky than buying, however, because prices drop much faster than they rise.

Another major use is in the formation of market trends. Trends are formed by the consistent behavior of a security or a group of securities relative to one another. Stock prices are also predicted by the volume of buyers and sellers in the market. The patterns created by these trends provide insight into the future direction of price movements.

Some analysts use technical analysis to predict patterns in the price of a stock. Technical analysis relies on the use of various mathematical tools to analyze the relationship between price and time. For instance, if we look at the history of oil prices, we can see how prices peak and fall. If we see a number of similar peaks and falls, we can use this information to identify possible trends or indicators that may indicate changes in the future direction of the price.

There are many types of technical analysis. One type is fundamental analysis, which makes use of fundamental factors such as profit and loss control, dividends, EPS growth, and market trends. The other type of analysis is price action analysis, which studies price movements in relation to other economic indicators. This type of analysis makes use of fundamental factors, but looks for the overlaps among economic data points to identify possible trends. Fundamental analysis is also frequently used by traders looking to make money in the stock market.

When we look at the recent history of the stock market, we can see how prices have reacted to certain events. The most important events for traders to pay attention to include the release of economic reports, interest rates, unemployment figures, weather, and general business news. When these events happen, we can expect a major rise or fall in the price of the stock. By following company news and speaking with knowledgeable sources, people can develop accurate stock market timing systems. Stock market news can often make the difference between profiting from your investment and losing your money.

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