The Properties Of Price Movement
You might look at the stock prices at the bottom of your television screen or, if you are trading currencies in the forex market, you might look at the exchange rates go up and down your computer screen. Prices move and you wonder whether their behaviour means something. Could the market be sending out signals that you can use to make your decisions? How, exactly, are you going to study the market?
For anybody to make money from the market, they must have a way of studying it. There are predominantly two approaches: fundamental and technical. Fundamental analysis focuses on value but this is the subject of another article.
Technical analysis, on the other hand, focuses on price and its movement.
The movement of price has the following properties which traders can study to aid in their decisions:
Trend = its persistence to move in one direction,
Volatility = the magnitude of its fluctuations on a periodic basis,
Momentum = the rate of its acceleration and deceleration,
Cycle = its tendency to move in cyclical patterns, most especially in the futures market,
Market Strength = the number of transactions supporting its movements,
Support and Resistance = its tendency to rise or fall to a certain level and then reverse, repeatedly.
Analysts, using the technical approach of analysing the markets, have developed their own set of indicators, different to those used by fundamental analysts. These indicators are used to measure the properties of price movement. Fortunately for modern-day traders like you, you do not have to devise your own tools.
You just need to learn how they work and how to use them.
- END OF ARTICLE -
Please include the paragraph below if you are republishing this article online or in print..
Online Currency Trading System
David C. Arena has been professionally trading stocks, options, futures and foreign currency for years. He says that you will not find a more exciting and faster moving market than the forex market. Trading in foreign currency has become one of the most lucrative businesses in the world where an investor can turn a couple thousand into six figures in a very short amount of time.Despite all it's excitement, there is some risk involved in this trade and only a few people knows how to trade the forex market successfully. The professional trader David C.
Arena has compiled a great resource at http://online-forex-trading.cjb.net/ to help the average person to profit by trading forex. He teaches everything from the basics, in an easy to understand language, but manages to teach very advanced topics, which allows you to trade like a pro. See what Paul O. (Retired-Naples, Fl) had to say after referring the forex course...
Online Currency Trading System
Forex > Online Currency Trading System
Online Future Trading For Dummies?
(ContentDesk) August 22, 2005 -- Online trading whiz kid Chris Kobewka thinks it's not a difficult thing to make money trading the markets. In fact he believes that online future trading in particular, is a doddle. Not only that, he believes he can teach anyone to be successful with his unique trading system. A system he describes as the "Most SIMPLE Trading System Ever." His words. Pure advertising schlock?
Not if his numerous devotees are to be believed.Chris is the author of one of the internets hottest selling online future trading systems, dealing with commodity futures, stock, and forex trading.
An online trading system unique to him, and found nowhere else on the net, Chris has perfected his system over 4 years of successful trading, once making $2000 in less than an hour. He claims that even people who have never traded before will find it simple to understand -- and more importantly that if they stick to the 'rules' they cannot fail to make money.Too good to...
Online Future Trading For Dummies?
Forex > Online Future Trading For Dummies?