Chapter 5. An Overview of Markets

Chapter Objectives

After studying this chapter, you should be familiar with

• The market characteristics required for investors to use technical analysis

• The types of markets in which technical analysis can be used

• The differences between informed, uninformed, and liquidity market players

• The differences between price-weighted, market capitalization weighted, and equally weighted averages

Chapter Summary

In What Types of Markets Can Technical Analysis Be Used?

Direct search markets and brokered markets are usually not subject to technical analysis. Dealer markets and auction markets in which liquid, substitutable assets are traded are often subject to technical analysis.

Types of Contracts

In the cash

Get Study Guide for the Second Edition of Technical Analysis: The Complete Resource for Financial Market Technicians now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.