ow will you study the focuses on price and its
markets? Marquez Comelab – movement.
author of The Part-Time
Currency Trader – discusses the The movement of price has the
properties of price movements to following properties which
help you analyse the markets. traders can study to aid in their
decisions:
You might look at the stock
prices at the bottom of your Trend – its persistence to move
television screen or, if you are in one direction,
trading currencies in the forex
market, you might look at the Volatility – the magnitude of its
exchange rates go up and down fluctuations on a periodic basis,
your computer screen. Prices move
and you wonder whether their
behaviour means something. Could Momentum – the rate of its
the market be sending out signals acceleration and deceleration,
that you can use to make your
decisions? How, exactly, are you Cycle – its tendency to move in
going to study the market? cyclical patterns, most
especially in the futures market,
For anybody to make money from
the market, they must have a way
of studying it. There are Market Strength – the number of
predominantly two approaches: transactions supporting its
fundamental and technical. movements,
Fundamental analysis focuses on
value but this is the subject of Support and Resistance – its
another article. Technical tendency to rise or fall to a
analysis, on the other hand, certain level and then reverse,
repeatedly. used to measure the properties of
price movement. Fortunately for
Analysts, using the technical modern-day traders like you, you
approach of analysing the do not have to devise your own
markets, have developed their own tools. You just need to learn how
set of indicators, different to they work and how to use them.
those used by fundamental
analysts. These indicators are
About the Author:
Marquez Comelab is the author of the book: The Part-Time Currency Trader . It is a guide for men and women interested in trading currencies in the forex market. Discusses analysis, tools, indicators, trading systems, strategies, discipline and psychology. See: http://marquezcomelab.com.
