Weak Market

Weak Market is basically a term used to define a market in which open interest is decreasing and prices are increasing or a market in which open interest is increasing and prices are decreasing. In short, a market where sellers outnumber buyers and prices are in a general state of decline is called a weak market. In a technically weak market, the trading volume does not correspond to the price and decreasing prices are accompanied by increasing volume or decreasing volume accompanies increasing prices. Technical analysts are concerned only with the price movement of securities and the characteristics of the company that has issued the security do not bother them. They follow the trends in a security’s supply and demand to determine the most profitable times for buying and selling.

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Edited and Updated 31st May 2014

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