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Discretionary Trading: While other trading styles emphasize the reading of signals based on mathematical formulas or price action patterns, or fundamental analysis alone, discretionary traders are the "jack of all trades" of the Forex market and tend to incorporate all forms of analysis. These traders not only rely on their well developed trading processes and framework of the fundamentals and technicals to make a decision, but also sometimes intuition as well (i.e., years of market experience). Because of their experience, discretionary traders tend to be flexible with their trading rules and more adaptable to market changes.
The downside to the discretionary trading style is that trading decisions are more susceptible to the strong emotional effects of managing financial risk. Also, depending on the time frame, it requires more attention to the market than mechanical or automated trading methods.
Daily Candlestick Chart for RBCC
[img]stockcharts.com/c-sc/sc?s=RBCC
Long-term Trends as a Strength of Fundamental Analysis
Fundamental analysis is good for long-term investments based on very long-term trends. The ability to identify and predict long-term economic, demographic, technological or consumer trends can benefit patient investors who pick the right industry groups or companies.
Drawdown: Drawdown is a measure of peak-to-trough decline, usually given in percentage form. In trading, drawdown refers to the reduction in your trading account from a trade or a series of trades.
For instance, your trading account is initially at $10,000 then you lost $2,500 today and $2,500 the next day. Your account would then be at $5,000 and you would’ve had a 50% drawdown. In other words, a drawdown measures how much you’ve lost before you get your account back to par. But with a $5,000 remaining balance, you’d need to win another $5,000 to bring your account back to breakeven … That’s a 100% gain!
Knowing your trade’s drawdown is an important part of risk management. Traders usually take note of their maximum drawdown, which is the largest top-to-bottom loss incurred under a trading strategy. While “Maximum Drawdown” sounds like your typical summer blockbuster movie, it ain’t cool since it basically measures your biggest losing streak!
Daily Candlestick Chart for FXPT
[img]stockcharts.com/c-sc/sc?s=FXPT
General Steps to Fundamental Evaluation
Even though there is no one clear-cut method, a breakdown is presented below in the order an investor might proceed. This method employs a top-down approach that starts with the overall economy and then works down from industry groups to specific companies. As part of the analysis process, it is important to remember that all information is relative. Industry groups are compared against other industry groups and companies against other companies. Usually, companies are compared with others in the same group. For example, a telecom operator (Verizon) would be compared to another telecom operator (SBC Corp), not to an oil company (Chevron Texaco).
Daily Candlestick Chart for PARA
[img]stockcharts.com/c-sc/sc?s=PARA
Kagi Chart Parameters
There are three ways to specify the reversal amount that is used in the construction of a Kagi chart: Absolute points, Percentage, and Average True Range (ATR).
Absolute Points
With the Absolute Points method, you specify the number of points that a stock must reverse before a change in the Kagi line occurs. The advantage of this method is that it is very easy to understand and predict where reversals will occur. The disadvantage is that the point value needs to be different for high priced stocks than for low priced stocks. Typically, you will need to choose a value that is roughly 1/20th the average price of the stock during the time frame you want to chart. Common values include 1, 2, 4, and 10.
Important Note: The Default for Kagi "Pts" method is currently 14, which is too large for most stocks. You'll need to change it to a smaller number to get a useful chart.
Percentage
The Percentage method causes a reversal each time prices move more than the percentage that you specified. This has the advantage of not needing to change the setting if the value of the stock changes significantly during the time period being charted. The disadvantage is that it isn't easy to predict exactly where the next reversal will occur.
Average True Range (ATR)
The Average True Range (ATR) method uses the value of the ATR indicator to determine where the next reversal should occur. The ATR indicator is designed to ignore the normal volatility of a stock, and thus it can "automatically" find good reversal levels regardless of the value or volatility of the stock selected. ATR with a value of 14 is the default value for Kagi charts and should generate a very usable chart in most cases.
Bank of England (BOE) Rate Decision: Release schedule : 11:00 AM GMT (about 7:00 AM EST); Monthly in the first or second week.
Source of report : Bank of England Monetary Policy Committee
Web Address : http://www.bankofengland.co.uk
Address of release : http://www.bankofengland.co.uk/monetarypolicy/decisions.htm
Daily Candlestick Chart for XSNX
[img]stockcharts.com/c-sc/sc?s=XSNX
Building Permits - Canada: Release Schedule : 8:30 AM (EST); monthly, on the first week of the reporting month
Revision Schedule: The report following next month
Source of Report : Statistics Canada
Web Address : http://www.statcan.ca/start.html
Address of Release : http://www.statcan.ca/english/Release/index.htm
Daily Candlestick Chart for GTMM
[img]stockcharts.com/c-sc/sc?s=GTMM
Bailout: A bailout is a financial term referring to an extraordinary act of lending, or outright giving, capital to an entity (a company, bank, individual, etc.) that is in danger of failure due to bankruptcy or insolvency. A bailout can also be given to a failing entity to allow it to exit gracefully without leading to a contagion.
Daily Candlestick Chart for BAYN
[img]stockcharts.com/c-sc/sc?s=BAYN
Industry/Company Specific As A Weaknesses of Fundamental Analysis
Valuation techniques vary depending on the industry group and specifics of each company. For this reason, a different technique and model is required for different industries and different companies. This can get quite time-consuming, which can limit the amount of research that can be performed. A subscription-based model may work great for an Internet Service Provider (ISP), but is not likely to be the best model to value an oil company.
Daily Candlestick Chart for MWIP
[img]stockcharts.com/c-sc/sc?s=MWIP
Daily Candlestick Chart for BMPI
[img]stockcharts.com/c-sc/sc?s=BMPI
Prices Movements are not Totally Random
Most technicians agree that prices trend. However, most technicians also acknowledge that there are periods when prices do not trend. If prices were always random, it would be extremely difficult to make money using technical analysis. In his book, Schwager on Futures: Technical Analysis, Jack Schwager states:
Ascending Triangle: An Ascending Triangle is a price action formation signal based on continuation pattern theory.
Continuation patterns also include symmetrical triangles, descending triangles, wedges, flags, rectangles and pennants and are essentially technical patterns that are expected to lead to the continuation of an existing trend. Continuation patterns are considered a powerful trading tool as they usually result in extremely low risk trading opportunities and spectacular returns.
An ascending triangle demonstrated within a chart pattern is recognized as having a bullish position and occurs as a result of price highs and price lows that have begun to converge so that they, in effect, form a point. If a line is drawn above and below the pattern the top line will appear straight whilst the bottom will slope upwards at an angle.
Ascending triangles are considered to be at their most reliable when occurring during an uptrend, and a buy order should be placed on a break above the upper resistance area of the triangle. If however, the pattern is proved to be false, or if the ascending triangle pattern should fail, then it is advisable to sell when the market breaks out and below the triangle.
Daily Candlestick Chart for BPWRF
[img]stockcharts.com/c-sc/sc?s=BPWRF
Biflation: Biflation is a phenomenon where both inflation and deflation occur at the same time. This term was coined by Dr. Osborne Brown, a Senior Financial Analyst for the Phoenix Investment group.
During biflation, the prices of commodities and earnings-based assets (equities) rise while the prices of debt-based assets (bonds) fall
Daily Candlestick Chart for FITX
[img]stockcharts.com/c-sc/sc?s=FITX
Company Analysis
With a shortlist of companies, an investor might analyze the resources and capabilities within each company to identify those companies that are capable of creating and maintaining a competitive advantage. The analysis could focus on selecting companies with a sensible business plan, solid management and sound financials.
Daily Candlestick Chart for OHRP
[img]stockcharts.com/c-sc/sc?s=OHRP
Daily Candlestick Chart for PHOT
[img]stockcharts.com/c-sc/sc?s=PHOT
Classic Heikin-Ashi TA Patterns
Classic patterns and trend lines can also be used on Heikin-Ashi charts. In contrast to normal candlesticks, Heikin-Ashi Candlesticks are more likely to trend with strings of consecutive filled (black) candlesticks and strings of consecutive hollow (white) candlesticks. The chart below shows Apache (APA) falling with a string of filled candlesticks in late October. The Heikin-Ashi candlesticks formed a falling wedge and APA broke resistance with a surge in early November. A triangle consolidation then took shape as the stock consolidated in November. The upside breakout signaled a continuation of the bigger uptrend.
The next chart shows Monsanto (MON) with a classic correction in June 2011. The Heikin-Ashi Candlesticks were more than adequate to identify this correction and subsequent breakout. Notice how a falling channel formed as the stock retraced around 61.80% of the prior decline. The big breakout in late June signaled an end to this correction and resumption of the advance.
Daily Candlestick Chart for EFIR
[img]stockcharts.com/c-sc/sc?s=EFIR
Daily Candlestick Chart for KADR
[img]stockcharts.com/c-sc/sc?s=KADR
Daily Candlestick Chart for PUBNF
[img]stockcharts.com/c-sc/sc?s=PUBNF
Binary Options: In finance, binary option (also called fixed return option, all or nothing or digital option)is a type of option where the payoff is either some fixed amount of some asset or nothing at all.[1] Binary options have been available since the middle of 2008. Binary options are trading options that pay out a pre-set and fixed amount if the underlying asset on which the option is based reaches the trader’s selected ‘direction’ (up or down compared with advertised value at the time of purchasing that option) at expiry time.[2]
The Binary Option is a prediction on which way the price of a stock, commodity, index or foreign currency will move by a designated expiration time. Traders can never purchase or own the asset, they can only predict the direction that the asset will go. There are only two possible outcomes and the price of the asset does not matter, all that matters is if the prediction was correct or incorrect.
Charts ~ The Basics
Even though many different charting techniques are available, one method is not necessarily better than the other. The data may be the same, but each method will provide its own unique interpretation, with its own benefits and drawbacks. A breakout on the point
Daily Candlestick Chart for SIMH
[img]stockcharts.com/c-sc/sc?s=SIMH
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