15. (a) Briefly explain the various market indicators used in Technical Analysis.

15 (a) Various market indicators used in Technical Analysis are as follows: (i) Breadth Index: It is an index that covers all securities traded. It is computed by dividing the net advances or declines in the market by the number of issues traded. (ii) Volume of Transactions: The volume of shares traded in the market provides useful clues on how the market would behave in the near future. A rising index/price with increasing volume would signal buy behaviour because the situation reflects an unsatisfied demand in the market. (iii) Confidence Index: It is the ratio of high-grade bond yields to low-grade bond yields. It is used by market analysts as a method of trading or timing the purchase and sale of stock, and also, as a forecasting device to determine the turning points of the market. (iv) Relative Strength Analysis: The relative strength concept suggests that the prices of some securities rise relatively faster in a bull market or decline more slowly in a bear market than other securities i.e. some securities exhibit relative strength. (v) Odd Lot Theory: The odd-lot theory is used primarily to predict tops in bull markets, but also to predict reversals in individual securities.