Ultratrend & Ultratrend 2 (unfx.ru)
Ultratrend
About Us
Ultratrend
Advantages of Technical Analysis
Ultratrend
Of all the financial instruments, the forex market is best suited for technical analysis, for several reasons:
- Forex exceeds the volume of all other markets. This volume in the last thirty years has grown by about 2000 percent, from 1 billion a day in 1974 to about $ 2 trillion in 2005, so the liquidity of the market is almost unlimited.
- Currency market never closes for the trading week, so here there is no build-up or delay of customer orders. There are virtually no gaps, leading to uncontrolled losses. The trading week starts in Sydney, Australia, Monday morning, when the North America and Europe still Sunday and ends in New York on Friday afternoon.
- We know the two main types of market – trending and side. It is much easier to make money in a trending market. Currencies tend to go longer-term trends that can last for many months or even years. This makes them ideal for trend-trading and breakout system. For the same reason as good forex analysis works of graphic patterns. With such a wide spread market in the world a huge role in the movement of exchange plays a crowd behavior, and it is – the basis of the tools and methods of technical analysis.
- Partially because of its size, forex less volatile than other markets. Lower volatility means less risk. For example, the daily trading range index SP 500 – from 4 to 5 percent, while the daily range Euro – about 1 percent.
- Forex – an ideal market for intermarket method of market analysis, developed many years ago by Louis Mendelsohn (Louis B. Mendelsohn). Trading veterans know that the markets are interdependent, with some more than others influence the movement of the selected currency pair. Program analysis Mendelssohn, VantagePoint, discovers hidden repeating patterns occurring between related markets. Using neural networks to analyze data from a set of related markets (see. Figure above), the program projects the medium that turns precede the actual medium in 80% of cases.
Forex Fundamentals
Do not forget about the fundamentals
Successful forex traders, like their trademark and the drain colleagues should not forget the fundamental factors that affect the forex market.
- The decision to change the central bank interest rate.
- The numbers of government debt and budget deficits show the changes for better or worse. The growth deficit, for example, often presages an increase in interest rates as the government competes with the private sector for investment capital. The difference between the stock market and forex is that rising rates are generally favorable news for the currency.
- Quarterly Report on GDP (gross domestic product).
- The economic and geopolitical events. It can be elections, armed conflict, political riots, etc., which, according to investors or traders, could destabilize the market.
- Economic indicators. For example, the industrial indicators of jobs (non-farm payrolls in the US) and employment. They can affect the markets, including foreign exchange, because they directly affect the national interest rates and economic policy.
- Japanese reports. Traders yen monitor quarterly reports Tankan.
- Review of market sentiment. These commentators publish reviews and information services. They help to buy on the rumor and sell – on the news.
Available forex trader – the whole arsenal of tools of the trade. The better these fundamental and technical tools, the greater their chance of successful trading.
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