Today we will analyze the price movement that distinguishes every financial instrument. All this to give us the opportunity to predict more reliably the trend of the market on which we intend to invest. We assume that the dispute between sellers and buyers, which is consumed every day in the financial markets, shift its balance alternately between one of the two parties in a non-random manner. These are the price movements exploited by the technical analysis of trading.
Are there reliable trading signals? Can we trust sites that offer them for a fixed time and free of charge?
As with reliable signals in Forex or for the calculation of the strategies used to analyze the signals for binary options, the prudent investor have to give a significant weight to these price changes, analyzing at the same time important corporate communications or the presentation of budgets that can shift the psychological balance of those who invest. Consequently, in addition to the prices we should also analyze the market graphs and these possible statistical trading signals: all, we repeat, to predict the shift of future market trends.
We can consider reliable trading signals serious and decisive indications about the investment operation we want to carry out. Many successful traders publish the best strategies to operate on their channels of diffusion or on online magazines, helping investors by showing them precisely on which reliable signals are.
Some market analysts criticize technical analysis and especially the fact that every economic event can be discounted in prices. In this regard, the graphs would not be able to predict the real trend of the trends because they would only represent a "screenshot" of the current market situation. On the other hand, the market is full of successful analysts who, by better understanding their personal experience and the history of the last months / years of investments, are able to obtain good results constantly.
As in all fields, we can recommend a good deal of study and analysis through paper trading. In order to fully understand if this type of approach is for us. Among the graphical elements with which the investor will have to deal:• Prices• Time lapse: it is very important above all for what concerns the planning part. In fact, it is fundamental to understand before and until certain price changes are made• Volumes: indicate the quantity of exchanges that occurred for a financial instrument. Analyzing the volumes in detail helps us to understand the real strength of buyers and / or sellersIn addition to those mentioned (which however we will investigate with other specific articles) there are other indicators that allow traders to analyze the market through their simple analysis.
As mentioned, the price channels are intelligent techniques for analyzing the various trends in the financial markets. The graphic illustration is composed by two lines, at the minimum and maximum of the period analyzed (the upper line will illustrate the trend of the maximums becoming resistance, on the other hand the lower line will follow the lows and will represent a support ). Discovering a trend is therefore a practice that is the basis for the identification of price channels.
We are going to talk about a strategy that studies price escapes from technical channels, all to find and then analyze the signs of purchase and / or sale. We have a price break if:• Prices "defeat" a resistance and / or a support• Prices grow a lotIf a break occurs, the market usually assumes a volume of volatility, often reversing some of its trends. Let us clarify one thing: volatility can lead to false signals. For this reason, it is necessary to:• check that reliable technical indicators and oscillators also accompany the break• Program the exit from the trade well in advance
They are a technical training that is often proposed; they are based on price compression and cause volatility spikes. There are three different types:
The last two types are similar in that they present one of the two constant horizontal lines on the same price level. It is therefore very important to analyze and keep a close eye on the evolution of the "price battle".
The signals are based on technical analysis that must be channeled into a system that takes the name of the trading system. The whole is placed in the optics of choice, by the investor, of:
We can list its different methodologies with which to analyze and understand the various trading signals and the service they offer:
Leverage is the mechanism that allows an entity to buy or sell financial assets for an amount greater than the capital held and therefore to obtain much higher profits. Of course, as in the positive case, you earn a lot, but in the case of loss, that is huge. Care must therefore be taken to use such mechanisms, which are common especially in the forex market.
Apps for online trading are many, and it is difficult to find the ideal solution without wasting time with non-functional applications. So, we try to make it clear by recommending a range of trader applications to download and test directly with your strategies.
The Macd (Moving Average Convergence/Divergence) is an indicator designed by Gerald Appel. This is a delayed indicator, convergence divergence of moving averages, as it is constructed with moving averages; for the same reason its use is more indicated in trend phases.
Before we talk about Strike price we need to take a small look at some concepts related to call and put options.