Welcome to Technical Analysis Guide
Technical Analysis On Forex Market Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
The Science of Stock Market Technical Analysis
from:
Without trade, there will be no progressive economy. One of the bases of a progressive economy is an active and continuous trade which facilitates the continuous flow of money around the market. As long as there is an existing trade between two individuals or entities, be it a commodity or other things that can be purchased or sell to generate profit, the flow of money around the market will go on and a progressive economy is within easy reach.
In addition, the existence of market further established a common ground for different trading activities. Apart from the physical structure or place of trade, the market is considered to be a systematic process allowing traders to ask and bid, thus helping sellers and bidders to interact and make various deals. It functions like a voting system wherein the candidates (the sellers) seek the support of voters (the buyers) by offering their platform of governance (their product and its market price).
One of the market systems that are very common among traders is the stock market (i.e. New York Stock Exchange). It is the market for company stock trading and its derivatives. For individuals outside the trading industry, stock is a term that is difficult to understand. Unlike other market system such as the foreign currency exchange market and commodities market wherein you can easily determine what is being traded (currency and commodities, respectively), stock creates confusion among non-traders and even to neophyte traders.
In finance, stock is the capital raised by a certain company or corporation. Such capital is accumulated through the issuance and release of shares to interested individuals or organizations. Like in acquiring a pair of foreign currency or a commodity for revenue, the acquisition of shares of a company’s stock allows you to partake in the revenues (based on the percentage of your share ownership) generated by that company.
However, the issuance and distribution of stocks in the market requires extensive study and evaluation. Like the currency or commodities wherein you need to take a position on a certain deal, there is a right time to distribute stocks in the market to raise more capital for the company. It is determined through a technical analysis.
Aside from determining the ideal time to distribute stocks on the market, technical analysis is also used to evaluate securities (the legal right that is awarded by the borrower to a creditor and often represented by a certificate such as shares of corporate stocks) by analyzing the statistics produced by the present market activities, volumes, and past market prices. It is done to forecast price trends in which the stocks could be sold for a profit.
Basically, technical analysis on the stock market is done through studying different charts of past price action. It includes variables such as the stock’s price, volume, and open interest (the total number of derivative contracts). In most cases, it only includes the analysis within the dimensions of the market and not the financial dimension of the company (such as dividends or cash flows). However, there are also companies who try to combine the fundamental (study of a company’s financial dimension) and technical analysis.
Even the accuracy of the results is disputed (since it is a predictive method that is based on price trend assumptions), technical analysis is one of the reliable tools that companies and stock traders can use for their quest of profitable capital raising and huge revenue generation, respectively.
Technical Analysis On Forex Market Specific links
Technical Analysis On Forex Market News
MahiFX Launches New Forex Technical Analysis Indicators and Charting Components
MahiFX introduces new graphical indicators, overlays and trend lines along with charting components to enable traders to zoom, draw and trade directly on interactive chartsLondon (PRWEB UK) 15 May 2012 MahiFX, the proprietary-built retail foreign exchange (Forex/FX) trading platform, has today released a new suite of charting components and market-timing technical analysis features and ...
Read more...Forex Trading Tips for Investors in the Global Currency Markets
SINGAPORE, May 23, 2012 /PRNewswire/ -- Forex Trading offers various benefits from tighter fixed FX spreads to greater leverage and substantial gains from small movements in the market.Foreign exchange ...
Read more...EUR/USD Classical Technical Report 05.23
EUR/USD : The market remains under intense pressure and the focus for now is squarely on a retest and break of the 2012 lows from January at 1.2625. While we would not rule out a possibility of a sustained break below this level over the coming sessions, short-term technical studies are correcting from oversold and are showing a nee d for some form of a bounce from where a fresh lower top is ...
Read more...EUR/USD Classical Technical Report 05.22
EUR/USD : The market remains under intense pressure and the focus for now is squarely on a retest of the 2012 lows from January at 1.2625. While we would not rule out a possibility of a test of this level over the coming sessions, short-term technical studies are correcting from oversold and are showing a need for some form of a corrective bounce from where a fresh lower top is sought out.
Read more...GBP/USD Classical Technical Report 05.23
GBP/USD: The market remains under intense pressure since breaking back below 1.6000 and setbacks could now extend towards next key support in he 1.5600 area over the coming sessions.
Read more...