![]() ![]() It follows, therefore, that a study of price action is all that is required. The technician believes that anything that can possibly affect the price-funda mentally, politically, psychologically, or otherwise is actually reflected in the price of that market. nothing else that follows makes much sense. Unless the full significance of this first premise is fully understood and accepted. The statement “market action discounts everything” forms what is probably the cornerstone of technical analysis. There are three premises on which the technical approach is based: With this distinction made, the terms “price action” and “market action” are used interchangeably throughout the remainder of this discussion. The term “price action, which is often used, seems too narrow because most technicians include volume and open interest as an integral part of their market analysis. ![]() Dan-price, volume, and open Interest (Open Interest is used only in futures and options.) ![]()
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