In the world of trading, indicators have long been considered essential tools for analyzing market trends, identifying entry and exit points, and making informed trading decisions. Traders often rely on indicators such as moving averages, oscillators, and trend lines to gain insights into price movements and potential trading opportunities. However, there is an alternative approach that challenges the conventional reliance on indicators: trading without indicators.
Key events: USA - Core PCE Price Index (MoM) (Mar) Canada - GDP (MoM) (Feb) Although there have been a number of positive earnings announcements, European markets have faced difficulties gaining momentum yesterday following yesterday's losses. However, there has been some minor buying activity in certain crucial sectors, with consumer staples and financials receiving a boost from strong company updates. The FTSE100 has not performed as well, mainly due to underperformance in the energy sector and weakness in BP and Shell.
Key events: USA - GDP (QoQ) (Q1) USA - Initial Jobless Claims USA - Pending Home Sales (MoM) (Mar) Yesterday, worries about the economic future loomed over European markets, resulting in a second consecutive day of decline. This was compounded by profit-taking in luxury markets and a lack of strength in defensive industries, creating a broader drag on the markets.
Stock market price charts are like a cardiogram on a medical monitor: the more frequent the change, the more lively the market. But if you know where to look, the monitor will show much more: breathing rate, blood oxygen saturation, and blood pressure levels. It is the same with a chart in the forex market: it does not only show the rise or fall of the price.
The analysis of the situation in the financial markets is carried out via text and graphical materials from specialized sources. Forex analytics implies studying the news, and economic and political factors to predict the movement of asset prices. It is an integral part of any trader, as opening and closing trades should be based on certain factors.
Fundamental analysis, which is very popular among traders dealing with stocks and other securities at the stock exchange, lends itself to well-founded criticism from traders of the forex market. The main reason is that influence of financial statements on the price of one stock cannot be compared to the influence of certain news on the national currency rate of the whole country.
The value of assets changes every second and this process can be represented in the form of a chart, and on the basis of the accumulated statistical data, it is possible to assume with a higher probability the forthcoming price movement. What are the graphical patterns and which tools are the most effective and popular among successful traders? Today we will talk about graphical analysis, its advantages, and stages.