Virtually all the charts and indicators used by technical analysts are based on price data. Price data is a record of the day-to-day share price over a period.
Of course share prices move during the day, so in plotting the share price on, for instance, 25th January 2002, you could actually pick from 7 prices:
When we come to consider how technical analysts use price data, we will note the significance of each of the above.
Where do you get price data from? The laborious way is to plot it yourself by looking in the newspaper every day which will usually quote the mid-price, or consulting Teletext or Ceefax.
Far easier is to invest in a technical analysis software package, most of which come with historic data on all the FTSE companies, plus charting features and analysis tools.
Technical analysts often use a semi logarithmic scale to plot share price - semi logarithmic scales represent % increases rather than absolute increases and trends are easier to spot.
Recommend ReadingBook offers!
|
|
The New Day Trader Advantage
Jon Markman |
| Our price: £10.55
Normally: £15.99 |
|
|
Exotic Options Trading
Frans De Weert |
| Our price: £29.70
Normally: £45.00 |
|
|
The Little Book That Builds Wealth
Pat Dorsey |
| Our price: £7.25
Normally: £10.99 |
