ECONOMIC INDEX OF STOCK MARKET OVERBOUGHT AND OVERSOLD

Анотація

Introduction. Our stock market and stock exchange infrastructure are far behind European or US counterparts. Borrowing from them the experience of creating and using the developments in the domestic market will allow to develop the economy. Foreign indicators, research and sources, most of which are in the open, can give impetus to young and prospective scientists to improve the economic system in general and the development of the stock market in particular. The imperfection of the domestic legislation and the lack of transparency in the economic system do not allow to develop the stock market fully and effectively. It is not possible to find the perfect metric for every market, for every generation and for every asset, but it is possible and necessary to look for ways of analyzing and exploring data to be able to extrapolate them to current economic and geopolitical conditions. The purpose of the study is to analyze one of the known in the West indexes, but not common in the domestic expanses in the world of finance and quotations on Wall Street. Objectives of the article: increase the financial literacy of the population; to encourage prospective specialists to develop the stock market; to analyze known world sources and economic indicators; to convey the opportunity and feasibility of analyzing the economy based on stock market analysis. Conclusions. An important advantage of this indicator is its consolidated structure and the presence of several evaluation criteria. An easy and understandable form of presentation and prognostic character are also additional positive features. Skeptics argue that this index is more a tool for researching the current market condition than a predictive indicator, also pointing to its volatile nature and not always accurate signals. It is definitely worth using this indicator in your own analytical system, but it needs to be analyzed in parallel with other macroeconomic indicators. Keywords: stock market, economy, stock market, trading, volatility, stocks, bonds, options, futures.

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