Taking this further, when looking at the grouping of price for a given period, discovering the median price can start us on the path of determining where the middle ground is. The middle ground in pricing could indicate a few things, with the first being a magnet point. Investors and traders may begin to find that the middle point could be a common ground between buyers and sellers, leading to a good point to watch for support and resistance.
Another aspect could be a fair value point. If you find that the market continues to bring price back to the median price, we as investor can begin to see if that is a fair value price. Certainly the market is constant and never ending, but sometimes the market finds a sweet spot and that can be a good place to focus on.
Median price is very straight forward but it can add a starting point in your technical analysis. This price point can mean different things and fundamental analysis can help add value to those particular data points. Going forward, see how others use this data and you can potential integrate it into your current setup. Check out the other tools here at MacroAxis to help narrow your research.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
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