Technical Analysis of Margin Debt | CFA Level 1 Exam Preparation

Increase in Margin Debt: Technical Analysts' View | CFA Level 1 Exam

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An increase in margin debt would by viewed by technical analysts as

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Those who purchase securities on margin tend to be relatively sophisticated investors. Technical analysts trying to follow the "smart money" would view an increase in margin debt (debit balances in brokerage accounts) as indicating that those sophisticated investors are bullish on the market, which would lead the analysts to also be bullish.