The size of the main interest rate is the base for the interest rates of other instruments, such as state and corporate bonds, credit rates for legal entities and physical persons. Central banks resort to changing interest rates rather seldom; such changes are considered major market events, and market players keep a close eye on them.
Author: Victor Gryazin
Non-Farm Payrolls (NFP) are essential data on employment in the USA, which shows changes in the number of employees out of the agricultural sector of the country during the last month. The indicator is based on a poll answered by some 400,000 companies and 50,000 households. Empirically, it has been figured out that if the NFP increases stably by +200,000 every month, the GDP surplus equals roughly 3%.
The Williams Percent Range (Williams %R) is an oscillator of the price movement speed showing the position of the current price in the range between the low and high of the previous periods. The indicator is drawn in a separate window under the price chart and consists of the main line %R and two areas: the overbought and oversold ones.
Exchange-Traded Funds (ETF) are investment trust funds which stocks are traded on the exchange. An index ETF replicates the structure of its basic index. ETF stocks are available for the very same operations as normal stocks on any exchange.
I suggest splitting the preparation for trading the news into three parts: choosing the time, preparing a trading plan, and trading in accordance with the plan.
One of the most known and popular trading instruments on Forex are the Fibonacci levels (or lines). They appeared thanks to a famous Italian mathematician Leonardo from Pisa, better known by his nickname Fibonacci (son of Bonacci)
The Flag and Pennant patterns appear rather frequently on price charts. They are trend continuation patterns, working in the presence of a strong trend, same as trend reversal patterns. When such patterns appear, we may forecast that the trend will continue.
The Triangle pattern appears on different charts rather frequently. Normally, the Wedge is considered a reversal pattern, forming on maximums and minimums of a price chart in an up- or downtrend. A Wedge is quite similar to a Triangle, forming between the two converging support and resistance lines.
To succeed in market trading you should learn to analyze and forecast price movements. The market price is influenced by a whole range of various factors, all of which we literally cannot know. A question emerges: in this case, how does forecasting become possible? This question is answered by one of the basic and most necessary types of market analysis — technical analysis.
Stochastic Oscillator chart is drawn in a separate window under the price chart and consists of two lines: %K, quick one, and %D, slow one. Its values vary from 0% to 100%; at the levels of 20% and 80% signal lines, defining the oversold (0-20%) and overbought (80-100%) areas, are drawn.