Pivot Points Summary

Pivot Points is a very useful techniques that uses previous bar's high, low, close to project the support and resistance for the current bar. Daily pivot points are usefull swing trading while 4 hours pivot points are useful for intraday trading. Meanwhile, hourly pivots can be used for identifying better entry/exit points within the day. Just take a look at the follow charts and you'll see traders do respect pivot levels a lot.

* Daily pivots are calculated from previous day's high, low, close which ends at 5pm est or 21pm GMT.

* 4 Hours pivots are calculated from previous 4 hours bar which ends at 2100, 0100, 0500, 0900, 1300, 1700 GMT.

* Hourly pivots are calculated from previously hourly bar.

Fundamental Reports

Fundamental analysis refers to the study of the core underlying elements that influence the economy of a particular entity. Fundamental analysis, including forex fundamental analysis, is a method of study that attempts to predict price action and market trends by analyzing economic indicators, government policy and societal factors (to name just a few elements) within a business cycle framework.

Forex fundamental analysis can be used to forecast economic conditions very effectively. But forex fundamental analysis may not necessarily forecast exact market prices. Forecasting models in forex fundamental analysis are as numerous and varied as the traders and market buffs that create them. Two people can look at the exact same data and come up with two completely different conclusions about how the market will be influenced by it. Therefore is it important that before casting yourself into a particular mold regarding any aspect of market analysis, you study the fundamentals and see how they best fit your trading style and expectations.

For forex traders, the fundamentals are everything that makes a country tick. From interest rates and central bank policy to natural disasters, the fundamentals are a dynamic mix of distinct plans, erratic behaviors and unforeseen events. Therefore, it is best to get a handle on the most influential contributors to this diverse mix than it is to formulate a comprehensive list of all "The Forex Fundamentals."

This section: Forex Forecast and Analysis - Forex Fundamental Analysis Reports focuses on forex market and world economy. Reports are contributed by external analysts.

Technical Reports

Technical analysis is a method of forecasting price movements by looking at purely market-generated data. Price data from a particular market is most commonly the type of information analyzed by a technician. The bottom line when utilizing any type of analytical method, technical or otherwise, is to stick to the basics, which are methodologies with a proven track record over a long period. After finding a trading system that works for you, the more esoteric fields of study can then be incorporated into your trading toolbox.

Almost every trader uses some form of technical analysis. Even the most reverent follower of market fundamentals is likely to glance at price charts before executing a trade. At their most basic level, these charts help traders determine ideal entry and exit points for a trade. They provide a visual representation of the historical price action of whatever is being studied. As such, traders can look at a chart and know if they are buying at a fair price (based on the price history of a particular market), selling at a cyclical top or perhaps throwing their capital into a choppy, sideways market. These are just a few market conditions that charts identify for a trader. Depending on their level of sophistication, charts can also help much more advanced studies of the markets.

The building blocks of any technical analysis system include support/resistance, price charts, volume charts, and technical indicators that include trend indicators, momentum indicators, volatility, cycle, etc.

This section: Forex Forecast and Analysis - Forex Technical Analysis Reports provides technical analysis reports to our readers, contributed by external analysts.

Yield

The income as percent on the invested capital over one year.

Yard

1 billion US dollars (slang).

Volatility

A statistical measure of a markets price movements over time. For example, when there are sharp upward fluctuations in the market, the volatility is said to be high.

Uptick

Movement of the price upwards.

Two Way Quote

The quotation where a dealer quotes a rate of purchase and a rate of sale.

Trend

Steady long-term movement of the price (rate) in the market in a certain direction. Growing peaks and hollows form the upward tendency, whilst decreasing peaks and hollows form the downward tendency.

Trader

Participants of the market making operations using either their own funds or funds held on behalf of other investors.

Technical Indicators

The mathematical formulas used for construction of auxiliary schedules, facilitating the analysis of the market.

Technical Analysis

Using of the price chart and technical indicators for forecasting a situation in the market.

Support

Level of the price where the output on the market of significant number of buyers is expected or orders on purchase are concentrated. A term used in technical analysis indicating a specific price level at which analysts think people will buy. The opposite of resistance.

Stop Order

Order type whereby an open position is executed at a specific price.

Square

When an account has no open positions.

Spread

A difference between the price of the seller (ask) and the buyer (bid) in the bilateral quotation.

Spot Date

The delivery of a settled transaction, which usually occurs within two business days.

Spike

A significant difference between two quotations. Usually this occurs following overindulgence by spectators, and significant world news when the maket becomes nervous.

Speculator

Any person willing to take a risk on transactions to make a profit.

Soft currency

The currency exchanged for other currencies with some restrictions.

Slippage

Situation when stop - order is carried out at a worse rate than what it was ordered at. This situation could happen at a quickly varying market. For example, it can occur after the output of important fundamental data relating to the performances of known politicians. The size slippage can vary from one point up to numerous points. Slippage frequently takes place when trade opens on Sunday evening.

Short position

Position (in relation to the same currency). An open position where quantity of the sold currency exceeds quantity of the bought currency.

Scalper

The trader earning profit on insignificant (minimal) changes of the price (rate).