Forex expert analysis

Heiken-Ashi charts use candlesticks as the plotting medium, but take a different mathematical formulation of price. Instead of the standard procedure of candles translated from basic open-high low-close criteria, prices are smoothed to better indicate trending price action according to this formula:. Breakout — When price breaches an area of support or resistance, often due to a notable surge in buying or selling volume. Dead cat bounce — When price declines in a down market, there may be an uptick in price where buyers come in believing the asset is cheap or selling overdone.

However, when sellers force the market down further, the temporary buying spell comes to be known as a dead cat bounce.

Proponents of the theory state that once one of them trends in a certain direction, the other is likely to follow. Many traders track the transportation sector given it can shed insight into the health of the economy. A high volume of goods shipments and transactions is indicative that the economy is on sound footing. A similar indicator is the Baltic Dry Index. Doji — A candle type characterized by little or no change between the open and close price, showing indecision in the market.

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Elliott wave theory — Elliott wave theory suggests that markets run through cyclical periods of optimism and pessimism that can be predicted and thus ripe for trading opportunities. Harmonics — Harmonic trading is based on the idea that price patterns repeat themselves and turning points in the market can be identified through Fibonacci sequences.

Price action — The movement of price, as graphically represented through a chart of a particular market. Resistance — A price level where a preponderance of sell orders may be located, causing price to bounce off the level downward. Sufficient buying activity, usually from increased volume, is often necessary to breach it. Retracement — A reversal in the direction of the prevailing trend, expected to be temporary, often to a level of support or resistance.

Support — A price level where a higher magnitude of buy orders may be placed, causing price to bounce off the level upward. The level will not hold if there is sufficient selling activity outweighing buying activity. Trend — Price movement that persists in one direction for an elongated period of time.

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Technical indicators fall into a few main categories, including price-based, volume-based, breadth, overlays, and non-chart based. Coppock Curve — Momentum indicator, initially intended to identify bottoms in stock indices as part of a long-term trading approach.

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MACD — Plots the relationship between two separate moving averages; designed as a momentum-following indicator. Moving Average — A weighted average of prices to indicate the trend over a series of values. Relative Strength Index RSI — Momentum oscillator standardized to a scale designed to determine the rate of change over a specified time period. Stochastic Oscillator — Shows the current price of the security or index relative to the high and low prices from a user-defined range.

Used to determine overbought and oversold market conditions. Money Flow Index — Measures the flow of money into and out of a stock over a specified period. Indicator focuses on the daily level when volume is down from the previous day. On-Balance Volume — Uses volume to predict subsequent changes in price. Proponents of the indicator place credence into the idea that if volume changes with a weak reaction in the stock, the price move is likely to follow.

Focuses on days when volume is up from the previous day. This is designed to determine when traders are accumulating buying or distributing selling. For example, when price makes a new low and the indicator fails to also make a new low, this might be taken as an indication that accumulation buying is occurring. Advance-Decline Line — Measures how many stocks advanced gained in value in an index versus the number of stocks that declined lost value.

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Central banks are likely to maintain their ultra-loose monetary policy for longer than the pandemic. With Brexit talks out of the way, markets can focus on the consequences of this historic change. Coronavirus vaccination should finish the crisis by year-end, yet a bumpy road awaits. We also indicate the average price forecast as well as the average bias. Traders can check if there is unanimity among the surveyed experts - if there is excessive speculator sentiment driving a market - or if there are divergences among them. When sentiment is not at extremes, traders get actionable price targets to trade upon.

When there is deviation between actual market rate and value reflected in forecasted rate, there is usually an opportunity to enter the market. No lag in the data : Contrary to other indicators, there is no delay. A very useful tool to combine with other types of analysis of technical nature or based on fundamental macro data, like trading positions , rates table or live chart. Significant sentiment data , based on a representative sample of 25 to 50 leading trading advisors for 5 years. Do not follow a single guru but rather a balanced group of well chosen experts.