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Forex Tutorial: The Basics Of Forex Analysis

Forex Tutorial: The Basics Of Forex Analysis

The Forex trading market is an around-the-clock cash market where the currencies of nations are bought and sold, typically via brokers. For example, you buy Euros, paying with U.S. Dollars, or you sell Canadian Dollars for Japanese Yen. Forex prices can change at any moment in response to real-time events, such as political unrest, crude oil prices, inflation, import and export prices, or industrial production.

Currency market players typically use “Forex analysis” as a tool in predicting currency price movements. Forex analysis itself is divided into two types: fundamental and technical. A fundamental analysis uses economic and political factors as a means of predicting currency movements. A technical analysis uses reliable historical data as a means of forecasting these movements. The purpose of this article is to discuss the basic principles of fundamental and technical analysis.

A fundamental analysis uses economic and political factors, such as housing starts, the unemployment rate, or inflation, as a means of predicting currency movements. Fundamental analysis is concerned with the reasons or causes for currency movements. Many Forex traders who rely on fundamental analysis plan their trading strategies around a number of key U.S. Government economic indicators. Some of these indicators are the Gross Domestic Product (GDP), Foreign Exchange Rates, Import and Export Prices, Industrial Production/Capacity Utilization, the Composite Index of Leading Indicators, Consumer Credit, the Consumer Price Index (CPI), Retail Sales, Housing Starts, the Employment Cost Index, and Consumer Confidence.

All of these Federal economic indicators have a marked effect on both the stock market and Forex. Some of these indicators are released weekly, while others are released monthly or quarterly. Their sources include the Federal Reserve Board, the U.S. Bureau of Labor Statistics, the U.S. Department of Agriculture, the U.S. Bureau of Economic Analysis (BEA), and the U.S. Census Bureau.

Forex traders must take other economic indicators into consideration as well. The world’s leading economies (for example, the United Kingdom, Japan, France, and Germany) also release their own economic indicators that will have an impact on the Forex market. For example, leading economic indicators in the United Kingdom include Housing Prices, Gross Domestic Product (GDP), Vehicles per 1,000 People, Telephones per 1,000 People, and the Percentage of People Employed in Agriculture.

A technical analysis uses historical data as a means of predicting currency movements. The technical analyst believes that history repeats itself over and over again. Technical analysis is not concerned with the reasons for currency movements (for example, interest rates or inflation). Instead, it believes that historical currency movements are a clear indication of future ones.

Investopedia states that “In a shopping mall, a fundamental analyst would go to each store, study the product that was being sold, and then decide whether to buy it or not. By contrast, a technical analyst would sit on a bench in the mall and watch people go into the stores. Disregarding the intrinsic value of the products in the store, his or her decision would be based on the patterns or activity of people going into each store.”

For example, during the back-to-school buying season, the technical analyst might observe that more people are going into clothing stores than into stores selling flowers. Likewise, the technical analyst might observe that more men are going into stores selling flowers on Valentine’s Day than into clothing stores.

Here is another example. Oil prices dramatically increase, thus creating inflation. Interest rates rise as a means of controlling inflation. One historical result of higher interest rates is less money to spend, thus slowing economic growth. Another historical result is increased foreign investment in the currency affected by the higher interest rates, thus strengthening it.

The technical analyst typically uses charts as a tool for predicting currency price movements. The three most popular kinds of charts are line charts, vertical bar charts, and candlestick charts.

Some Forex traders depend on fundamental analysis while others depend on technical analysis. However, many successful Forex traders use a combination of both strategies. However, the important point to remember here is that no one strategy or combination of strategies is 100% certain.

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Simple Trader Pro Analysis – Great Or Bad?

Simple Trader Pro Analysis – Great Or Bad?

I decided to create this Simple Trader Pro review following having a chance to find the program inside action initial hand. Watching it function, I saw for me how it lived as much as its claims plus stacked as much as additional betting systems. Hopefully, following reading regarding my experiences with all the product, you’ll have a greater learning of how Simple Trader Pro functions plus whether it really is value a time plus effort to look into further.

I used to love betting. The excitement of the wins usually overpowered the heartbreak of the losses plus kept me coming back for more. Unfortunately, following awhile I started to have heartbreak following heartbreak, as well as the wins were limited plus far between. I lost so much income I had to call it quits. Next I stumbled over the Simple Trader Pro program, plus have yet to look back.

The Simple Trader Pro program is 1 which consistently churns out income. After the crowd, we end up with a break-even balance, as well as the program takes this into consideration. If you want, you are able to even employ the Simple Trader Pro system to become a full-time gambler. Imagine how more time we can invest with your children, vacationing or viewing TV with the newfound versatility from a day job! Imagine generating additional money than we did functioning 9-5 each Monday from Friday. With Simple Trader Pro, those dreams may become a fact.

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Market Analysis for HEALTHNOSTICS Inc

Company Background

Healthnostics Inc (PINK: HNSS) is a biotechnology analytics company and deals comprehensive patient clinical monitoring and risk management systems to acute care hospitals and clinical facilities. The company also delivers valuable medical content and biotechnology resource information to professionals and its readers.

Based in New York, Healthnostics Inc offers wide range of products and services for its customers. The product portfolio includes MedGuardian, Med Bio World and Family Medical Net.

Med Guardian is a Web-based patient care monitoring and risk management system specially designed for hospitals. The application offers automated data collection and analysis of improving clinical treatments.

The application reduces the medical errors up to maximum level resulting in better monitoring and tracking of clinical complications. The system also keeps record and track of information about patients, visitors and employees.

MedBio World is an online resource portal offering medical and biotechnology information to industry professionals. The portal gathers its information from online directories, targeted search engines, newsletters, specialized databases, blogs and other reference tools.

One of the main features of Med Bio World is its Health News Explorer with provides news from Reuters Health based on proprietary keyword search. Its research tools include medical guidelines, education, medical journals, clinical trials, article, abstracts, education and training.

Med Bio World is highly ranked in Google in all the categories related to medical and biotechnology such as oncology, dermatology, pediatrics, internal medicine, biochemistry, neurology, anatomy and bio statistics.

Family Medical Net is a web site specializing in high quality content and information about health and medical sciences. The site gather the information about the subject form the most reliable sources over the internet such as federal government health and medical websites, databases, publications and associations. Familymedicalnet.com focuses audience of all ages and brings the most updated information for its readers.

Technical Analysis

Healthnostics Inc’s share price last closed on $ 0.0165 as on October 26th, 2010 with total traded volume of 3.45 million shares for the day. The share price reported the surge of 10% with market capitalization of 12,900. The average volume for HNSS stands around 1.86 billion shares per day.

The beta value stands at 0.64 times depicting that the share price is likely to react by 0.64 times against 1 point change in market index.

The share price traded between the prices ranges of $ 0.003 to $ 0.06 in last 52 weeks. A support level of $ 0.003 and a resistance level of $ 0.06 can be derived from the price history of one last year.

Comparison of moving averages shows a clearer picture of the trend. A short-term 10-days moving average is compared with long-term 100-days moving average. On plotting the both moving averages on graph it can be seen that the short-term moving average line clearly cuts the long-term moving average line from bottom toward the upward direction. The movement of the short-term moving average signals a major bullish trend for Healthnostics Inc’s share price.

MACD moving average convergence/divergence depicts a somewhat the same trend for the share price. The MACD line signaled the upward movement in share price of HNSS in the first week of October when the MACD clearly cuts the trigger line in upward direction. A continuation of the bullish trend can be assessed by looking at the MACD indicator.

60 day relative strength index value for HNSS stands at 53.83. The current value of RSI shows that the share price is neither in the oversold or over bought level. The 60 day RSI value shows that the share price still have considerable margin for capital gain. On the other hand looking at the short-term price movement the 14-day RSI value crosses the ceiling value of 70 to reach at 85 times at the much over bought level.

More precise trend can be assessed with Bollinger bands. The wide loosening of Bollinger bands clearly indicates volatility in price movements. Prices moving outside of the Bollinger bands clearly indicate the continuation of the same trend in which they are moving. Currently the share price is moving outside the bands in upward direction clearly indicating the continuation of bullish trend.

Latest Achievements and News

The company has recently announced the development of its Mobile Clean Room. As per the regulation of FDA clean rooms with specific standards of ventilation for contamination controls are required for every biotechnology company. HNSS latest Mobile Clean Room is a class 100 clean room developed specifically for MicroFill-2160, Healthnostics Inc’s latest high production machine.

The latest development will benefit the company with in house water purification system, low cost and overhead manufacturing facility, reduced utility usage and separate units for separate production. The new developed facility will result in rapid expansion and development to prime market locations.

Healthnostics Inc (PINK: HNSS) has recently acquired a major manufacturer of specialty products. The latest acquisition is expected to have a positive impact on the earnings and revenue. The company projects substantial increase in its revenue for the first quarter of 2011.

Healthnostics Inc also completed the acquisition of Worldwide Wipes Co almost 2 months ago. Worldwide Wipes Co happens to be the major manufacturer and distributor of wipes for medical, disinfecting and veterinary industry. The company target market ranges from individual consumers to huge corporations.

The terms and conditions of Worldwide Wipes acquisition also specified profit benchmarks of $ 300,000 to $ 600,000 for the first year followed by $ 600,000 to $ 900,000 in the second year.

Healthnostics Inc new developed manufacturing fill and seal machine MicroFill-2160 is designed to produce 2,160 medical pads per minute. The new manufacturing facility promises the three times faster production than similar machines. Further Micro Fill 2160 is also smaller in size as compare to other machines which will result in less clean room space.

MicroFill-2160 will be operated by fewer operators as compared to the other machines. The high manufacturing speed and less labor is expected to save substantial overhead costs. The company is also seeking for patent rights for its Micro Fill 2160.

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Stock Market Trading Using Technical Analysis – Bolllinger Bands Squeeze

Using Bollinger Bands for market analysis has become a widely popular method for determining price direction. Bollinger Bands will work with any market and are useful for identifying price volatility.

The bands expand or move in the opposite direction when volatility of a stock, commodity or index increases. The higher the volatility the wider the bands become. As volatility decreases the bands begin to come together or move towards each other. Once volatility bottoms out the bands begin to move parallel to each other. Price action tends to move sideways and can touch the upper band and the lower band before breaking out to a more volatile environment.

During this period of low volatility the bands are in what is known as a “squeeze”. That is, the bands squeeze the price together and it seems contained for a period of time. This is a good price setup that often leads to large price movements when prices break out of the squeeze. Look for prices to move to one of the bands, touch the band and continue moving in that direction. The bands then begin to expand once again and volatility returns. Prices tend to continue in the direction of the break out for awhile, often correcting back to the trailing moving average, then continuing in the direction of the trend. Once prices correct back to the moving average and close above that point, caution is warranted as this could lead to a period of reversing price action and a change of trend.

It should be noted that occasionally when prices begin to break out of a squeeze and head in a certain direction that they may reverse in what is known as a “head fake”, and continue in the opposite direction in what is usually a very strong move. What this looks like on the chart is a move to one of the bands (either top or bottom), the band begins to expand in the direction of the move, prices begin a small correction and consolidate, then they either continue the break out direction or they reverse. Other indicators such as momentum or stochastics can help to determine if the move is for real or not. Either way there is going to be a strong move, it’s just a matter of getting on the right side of the move. If a position is taken on the direction of the initial break out and prices reverse, it would pay to reverse your position as well.

Learn how to take advantage of the opportunities that present themselves in these volatile times. Learn important stock market terms and discover how to spot trends and develop short and long term strategies.

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Stock Trading – Technical Analysis for Fun and Profit

How do you scrutinize the stock you’re considering buying as an investment vehicle? More and more traders are finding out that an excellent way to perform their analysis is technically rather than fundamentally. As a devout technical analyst, I believe there are more and quicker profits as a reward to the trader using the technical approach to study stocks. Even the most fundamentally sound stock may not be in favor and may not gain in share price for quite awhile. But when a tradable stock is found using technical analysis, the move will happen soon or most likely won’t happen at all. No more buying stock and waiting for a gain that may not happen. No more shotgun approach and diversifying to overcome the losses you hold in your portfolio. The technician lets go of losers quickly while letting their winners run. It’s an active approach to trading stocks, options, forex and commodities. Besides, technical analysis is much more enjoyable than pouring over a company’s profit and loss statement!

Proper technical analysis is the study of an equities chart and forecasting probable price moves based on patterns exhibited on the chart. To be a successful technician of the markets it’s best to keep things simple. One of the pitfalls a budding technical analyst has to overcome is the massive amount of information on the subject and not falling prey to the “holy grail” syndrome. Many people have forgotten that the most important considerations of the stock chart are price and volume. While indicators may be helpful to some, others have tried to use them as a timing system almost to the exclusion of the price chart itself. Indicators are mathematical algorithms of price movement, volume or a combination of both. They where meant to be used as a tool to help the trader validate what they see on the chart, NOT to enter a trade. The most probable trades come from the price chart itself. The price chart tells a psychological story and trades should be based on the confirmed break of a pattern such as a head and shoulders or bearish wedge.

The satisfaction of mastering the craft of technical analysis can’t be overstated. It’s very satisfying to find a stock that screams “buy me” and then watching as the price breaks out of a trading range and clocks ten to fifteen percent over the next few weeks. Learning to read charts takes time but not an eternity. The key is to spend some time each night studying stock charts and over time you will begin to recognize the technical patterns that tell you if a stock has bottomed, topped out or will continue its trend. Keep it simple, learn to think for yourself and soon you will be on your way to successful trading with technical analysis.

B.M. Davis is an active trader and the publisher of the Market Master Trading Course. If you would like more information about candlestick charting, technical analysis or trading stocks please visit [http://www.market-masters.com]

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Market Trend analysis helps in proper stock trading

Article by Alice Dylan

Most people have a notion that stock market dealing is about risk and no thinking. You get the share and just delay for the value to increase. But the fact is stock market has its own evaluation for every action and response. Every ups and down are estimated by professionals who use different techniques to evaluate and estimate the activity. According to the method of comprehension and examining how the industry goes, there are technical experts as well as essential experts. If you occur to look at any of the stock markets analysis developing on the television before the starting bell of the industry, you can notice the reasons of the fundamentalists as well as the technical experts for their estimations.

Stock markets go through different stages at different points of time. At time the industry is bullish, at times it is bearish and the industry has a correction stage and volatile stage as well. For investing available options industry, and to get profit from investments, it is important that you identify these stages, estimate the coming stage, and plan investment decisions accordingly. There are different methods that are used by the experts to estimate stocks and shares trend. The fundamental analysis is based on the primary durability of the share. It investigates all the hidden data, the conditions, the need and the economic climate etc, to decide how the share will take a position in the present conditions. They try to figure out the estimated built-in value of a particular share, and assess whether it has achieved its high price or is still overlooked. According to the built-in value, the fundamental analysts’ advice the individual to provide or buy. If the value of the share has well entered the built-in value, he desires a down fall and tips provide.

There are so many techniques for technical analysis that are used by the professionals to estimate pattern of the industry, particular segment and in some cases particular shares as well. The technical evaluation is done on the foundation the information gathered from the industry. There are some set styles in this analysis that are established from the past backgrounds that you can buy. Experts try and decide a design out of the information that they get from the industry and publish this information to make a graphic counsel of the stock price. Then they evaluate the information design to the past styles to find out if there is a common design and then estimate the long run conduct of the industry from these charts.

To decide if the market is going through a favourable trend or not, you need to decide if the industry is having more purchasers or more suppliers. If the industry is having more people investing in shares than number of suppliers, then the market is having a favourable trend. If there is more supplier than client, then of course the market is going through a bearish pattern. To find out which exactly is the existing stock market trend, you need to carefully watch on the cost of the share and variety of the share. If the cost at the industry is up and the variety of dealing is high then you can estimate that the market is positive in characteristics. On the other hand, if the prices are decreasing and the variety of dealing is low as well then the trend of the industry is critical.

About the Author

According to Alicia Hodkins one must possess is a basic knowledge on the stock and mental strength and patience for successful stock market trading. As per her review Dynamic Levels assists you to be an expert in stock market trading with the help of appropriate market index trend analysisand constant research on stocks.

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According to Alicia Hodkins one must possess is a basic knowledge on the stock and mental strength and patience for successful stock market trading. As per her review Dynamic Levels assists you to be an expert in stock market trading with the help of appropriate market index trend analysisand constant research on stocks.












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Forex Trading Analysis – How to Use Average Daily Range to Improve Your Trades

Are you looking for a consistent technical indicator? You may want to consider using the Average Daily Range also known as ADR. When I used to do manual Forex trading analysis, I found this to be quite useful. Although with my new software, indicators like this are no longer needed.

ADR will provide you with an idea of how far a currency pair price is expected to move over a certain period of time. I found this helpful when trying to determine my exit points. You never want to leave a trade too early if it’s trending well as you may miss out on a lot of Pips.

Like all Forex trading analysis indicators, this one is not perfect. It should only be used as a guideline. And, it must be used in conjunction with other technical analysis tools such as trend lines, MACD, chart patterns etc.

It’s smart to stay conservative with trading. Before I started using automatic trading software, I would always stay a certain percentage away from where an indicator was telling me to exit a trade. With ADR, I would exit a trade a few Pips behind the anticipated end of a range that ADR indicated.

The best time to use ADR is at the beginning of your trading day. I used it about 20 minutes before the London open to see how far the currency pair may trend for that session. If you are familiar with trading, you’ll know that the London session consistently moves 70 to 150 Pips every day.

As mentioned, this is one of many manual trading tools that you could use. There is an endless combination of indicators and oscillators you could use to create trade entry and exit set ups. To me, this is an archaic way to trade.

Using powerful software to do all of the Forex trading analysis for you is the only smart way to go. There’s no gray areas of interpretation with software. It tells you to take a trade. That’s it. You just do what it says instead of trying to interpret all of these old school trading Forex trading analysis indicators.

So there you have it. ADR is a decent way to help predict the price range for a particular trading session. However, you are far better off getting current and allowing a software system do the Forex trading analysis for you.

Hector Breton’s passion trading by using software for Forex trading analysis [http://www.automatedforexsystemtradingblog.com]. Find out what he recommends as the only proven method to trade at [http://www.automatedforexsystemtradingblog.com].

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Getting The Most Of Stock Market Trading Through Automated Analysis System Software

Article by Tim Keeley

There are a number of wonderful features in the technological arenas in a variety of sectors of the world’s markets. We now have the best, most efficient methods of communication, of information sharing, and even automated analysis software for a variety of different applications. All over the globe, cheating students are being busted by copy and pasting essays straight off of the Internet by teachers using copy scanning software that automatically analyzes each essay and determines where it was copied from, quickly, efficiently and error free. This same sort of technological prowess is being applied to stock market trading as well, with a number of stock trading programs coming onto the market.

These automated trading programs are far outperforming their human stock broker counterparts, realizing a greater ability to not only accurately read the current and near term markets, but to effectively recommend beneficial courses of action for a variety of investment styles.

There are a few reasons why this software is so much more accurate than human stock brokers and managers, and mostly all of stems from the numerous human limitations. One of the initial, early arguments against the success of automated stock trading programs was that an automated system could not account for unpredictable human action, and that during periods of market performance switching, an automated program would fail miserably. But, what many of the early pundits did not account for was the ability of automated algorithms to be made as a self-learning entity that could account for these switches. And, when acting in large enough numbers, human action is depressingly, frighteningly predictable in numerous ways.

There are two primary ways in which automated stock trading programs are superior to human brokered and managed stock trading systems.

First, human biases play no part in an automated analysis program, so they are able to render and present a dispassionate, rational view of current market conditions. Also, because automated trading programs do not possess the numerous human biases and emotional reactions that can often hinder human stock market brokering or fund management.

Second, automated trading programs are able to analyze a wide breadth of data at an accelerated rate. Human fund managers suffer from the same limitations that all humans do, they experience fatigue, they have bouts of boredom, and they can loose focus when going through large reams of data. Things can often be missed. With an automated stock trading program, the algorithms never tire, and the analysis is as clean and crisp at hour 10 as it is at hour one.

About the Author

Regardless of the direction of the market, we view every year as an opportunity to make money. By using our market timing software to navigate the markets’ short, medium, and long term trends, you have the potential to make money every year! Absolute Return Trading Systems Inc. provides a subscription based, proven and authenticated market trading system.

Use and distribution of this article is subject to our Publisher Guidelines
whereby the original author’s information and copyright must be included.

Regardless of the direction of the market, we view every year as an opportunity to make money. By using our market timing software to navigate the markets’ short, medium, and long term trends, you have the potential to make money every year! Absolute Return Trading Systems Inc. provides a subscription based, proven and authenticated market trading system.












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Getting the Most of Stock Market Trading Through Automated Analysis System Software

There are a number of wonderful features in the technological arenas in a variety of sectors of the world’s markets. We now have the best, most efficient methods of communication, of information sharing, and even automated analysis software for a variety of different applications. All over the globe, cheating students are being busted by copy and pasting essays straight off of the Internet by teachers using copy scanning software that automatically analyzes each essay and determines where it was copied from, quickly, efficiently and error free. This same sort of technological prowess is being applied to stock market trading as well, with a number of stock trading programs coming onto the market.

These automated trading programs are far outperforming their human stock broker counterparts, realizing a greater ability to not only accurately read the current and near term markets, but to effectively recommend beneficial courses of action for a variety of investment styles.

There are a few reasons why this software is so much more accurate than human stock brokers and managers, and mostly all of stems from the numerous human limitations. One of the initial, early arguments against the success of automated stock trading programs was that an automated system could not account for unpredictable human action, and that during periods of market performance switching, an automated program would fail miserably. But, what many of the early pundits did not account for was the ability of automated algorithms to be made as a self-learning entity that could account for these switches. And, when acting in large enough numbers, human action is depressingly, frighteningly predictable in numerous ways.

There are two primary ways in which automated stock trading programs are superior to human brokered and managed stock trading systems.

First, human biases play no part in an automated analysis program, so they are able to render and present a dispassionate, rational view of current market conditions. Also, because automated trading programs do not possess the numerous human biases and emotional reactions that can often hinder human stock market brokering or fund management.

Second, automated trading programs are able to analyze a wide breadth of data at an accelerated rate. Human fund managers suffer from the same limitations that all humans do, they experience fatigue, they have bouts of boredom, and they can loose focus when going through large reams of data. Things can often be missed. With an automated stock trading program, the algorithms never tire, and the analysis is as clean and crisp at hour 10 as it is at hour one.

Regardless of the direction of the market, we view every year as an opportunity to make money. By using our market timing software [http://www.absolutereturntradingsystems.com] to navigate the markets’ short, medium, and long term trends, you have the potential to make money every year! Absolute Return Trading Systems Inc. provides a subscription based, proven and authenticated market trading system [http://www.absolutereturntradingsystems.com].

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Technical Analysis in Trading

Article by Peter Grofik

Technical analysis is one from different forms of analysis in trading. Technical analysis is a trading and investing tool that involves the study of past market’s price and volume data for the purpose of forecasting future price movements and it’s very helpful in showing when to enter and exit the trade. There are traders whose trade decisions are based strictly on price and volume movement and there are traders who also use other tools like fundamental analysis to support their decisions. For technical analysis are needed charts, that reflect price movements.

Technical analysis is based on principle that history repeats itself. Behind this principle is human psychology. Charts reflect psychology of the market. Chart patterns have been studied and categorized over one hundred years. Some of these patterns have worked well in the past, so it is assumed that they will continue to work well in the future. These are based on study of human psychology, which tends not to change.

Next very important premise of technical analysis is that everything what can influence the price like fundamental, psychological, political, or other factor is actually reflected in the price of that market. And how is the price created? From technical point of view price movements reflect relation between supply and demand. If demand exceeds supply, price should rise. If supply exceeds demand, price should fall. This is basic economic principle. Behind demand are buyers and behind supply are sellers. Behavior of buyers and sellers is what drives the market. These willing buyers and sellers come to an agreement of price but are in disagreement as to value.

From all this results that analyzing price and it’s history is indirect analyzing of fundamental and other factors that influence market behavior. Although this argument is quite controversial, most of technicians would agree. The question of this article is – what is all this analyzing for? The purpose of studying price charts and supporting technical indicators is to show trader which way is the market most likely to go. This last sentence is very important and notice that technical analysis is not for predicting future actions as a sure thing. Technical analysis uses term probability. When graphical picture of change of price in chart is in some pattern there is some probability that price will go in certain direction. This claim is based on research and analyzing price movements in the past.

Oftentimes happens that some traders who are new to technical analysis are little disappointed when some of their trades doesn’t go well even though according to the chart analysis it should. Well, it’s not magic. And it doesn’t have to be. Technical analysis helps many traders and institutional investors to make very profitable trades, so it doesn’t have to prove it’s value.

One of the main objectives of chart analysis is to determine the trend of prices. The key concept and discovery in technical analysis is that prices move in trends. A trend represents a consistent change in prices in some direction. The most of trading techniques are based on determining trends and trading in the direction of those trends.

One of the most interesting facts about technical analysis is it’s adaptability. First is the adaptability to different time dimensions. Chart analysis is used in day trading and also in longer term investing. Next is the adaptability to various trading mediums. Charts are analyzed in trading with stocks, commodities, foreign currencies, and so on. This is because the same principles are so widely applicable. This is a big advantage against fundamental analysis where traders are more specialized.

The bottom line is that the same data like open, high, low, and closing price are available to all traders, but how they analyze, interpret, and act on the information available is one from factors that differentiate one trader from others.

About the Author

Peter Grofik is trader who is willing to share his knowledge and experiences at his blog Stock and Option Trading Blog.

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Peter Grofik is trader who is willing to share his knowledge and experiences at his blog Stock and Option Trading Blog.












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