Internal indicators in market analysis are primarily based on which of the following?

Internal indicators in market analysis focus specifically on the data generated from the market itself, particularly examining price movements and trends. This includes metrics such as price patterns, volume analysis, moving averages, and various technical indicators that reflect the momentum and behavior of the market directly. By analyzing these internal factors, traders can infer the direction and strength of price movements, providing valuable insights into market dynamics.

The other choices pertain to different aspects of market analysis. External economic conditions involve factors outside immediate market data, such as GDP growth or unemployment rates. Fundamental analysis looks at a company's financial health, earnings potential, and overall economic performance, which is not internal to the market. Investor sentiment and psychological factors focus on the collective emotional response of investors, but they do not directly derive from market price and trend data. Therefore, the focus on price and trend makes the second choice the most fitting for internal indicators in market analysis.