HOW DO Economic Events impact Global Currencies:
Pratiyogita
kiran Technical analysis tracks the past; it does
not predict the future. You have to use your own intelligence to draw
conclusions about what the past activity of some traders say about the future
activity of other traders. For me, technical analysis is like a
thermometer. Fundamentalists who say
they are not going to pay any attention to the charts are like a doctor who
says hes not going to take a patients temperature. If you want to be a
successful trader in the market, you always want to know where the market is-
up – down- trending or choppy .You want to know everything you can about the
market to give you an edge. Technical analysis reflects the vote of the entire
marketplace and, therefore, does pick up unusual behavior.
pratiyogita
kiran subscription online By definition, anything that creates a
new chart pattern is something unusual. It is very important to study the
details of price action to see and observe. Studying the charts is absolutely
crucial and alerts to existing disequilibrium and potential changes. For forex
traders, the fundamentals are everything that makes a country tick. The release
of economic & inflation indicators (i.e., consumer spending, employment
cost index, government spending, producer price index, etc.), political actors,
government policy or an individual event can set the market in a frenzy. These
have to be considered when making the decision to trade or not to trade. Technical analysis,
is a way of using historical price data in different ways to predict the future
price of a currency pair. Fundamental analysis is a very effective way to
forecast economic conditions, but not necessarily exact market prices, and you
SHOULD trade in agreement with the supporting technical indicators
pratiyogita
kiran magazine.
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