Stock exchange expansion effect in technical analysis

Discussion in 'Technical Analysis' started by Poirot, Aug 24, 2010.

  1. Poirot


    Hi all,

    In my country's stock exchange, all stocks are included in the calculation of the index. As the number of listed stocks increases everyday, will historical data (with a smaller number of listed companies) affect technical analysis?

    For example, in 2009, the index which includes 100 stocks makes a support at 150. In 2010, the number of stocks increases to 200. What happens if the index drop back to 150, will the previous support have any significance on the current price?