The awareness of the overall economic, financial, political and other related factors are useful for traders, which can influence positive or negative the financial market and financial instruments prices.
The Macroeconomic and Microeconomic data announced from time to time about a country can educated the traders to understand better the movements in a financial market. Economic and political announcements are released almost every day and can have a direct impact on the markets. Including the forex market.
The traders can find the economic calendar and see the upcoming financial announcements.
The traders should give attention and understand how to use and analyses the published information such as the Deficits and Surpluses, trade Trends and Levels, Inflation, unemployment, Retail prices index, Mortgage loans etc.
Past performance is not a reliable indicator for future results. Technical analysis helps traders to determine trends and acts as a signal or indicator to either buy or sell.
A Line Chart shows a line from one closing price to the next closing price
A Line Chart shows us the general direction of the instrument over time
A candlestick chart also shows the opening and closing prices in addition to the high and low of the specified period and resembles a candlestick.
A bar chart shows the opening and closing prices in addition to the high and low of the specified period using a straight bar and line format.
A trend describes the current direction of the financial instrument and or the investor outlook towards the direction of a financial instrument.
A bullish trend is the term given to an optimistic outlook whereby there is a belief that a particular instrument is about to rise.
A bearish trend is the term given to a pessimistic outlook whereby there is a belief that a particular instrument is about to drop.
A hawkish trend is the term given to a favored increase in interest rates.
A dovish trend is the term given to a favored decrease in interest rates.
A ranging/flat trend is the term given that the price of the instrument is neither rising nor falling. Its normally indicates a change in the overall direction of a trend.