JPY seems to be relenting some of the gains made from BoJ Governor Ueda’s comments yesterday, while USD traders are…
Read MoreJPY seems to be relenting some of the gains made from BoJ Governor Ueda’s comments yesterday, while USD traders are…
Read MoreOne of the most widely anticipated IPOs of the year is set to take place on Thursday, with Arm LTD…
Read MoreWith the week nearing its end, we note that Canada’s Employment data for August have yet to be released. On…
Read MoreApple’s share price tumbled yesterday as the Chinese government widened the curbs on iPhone use by Government officials. The market’s…
Read MoreDuring yesterday’s trading session, we highlight the BoC’s decision to remain on pat, yet the bank stated that they are…
Read MoreA certain degree of uncertainty tended to characterise US stock markets in the past few days, allowing for a sideways…
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Technical Analysts believe that every relevant market factor is already counted in the instrument’s price. As such, the only thing they need to analyse is the price movement.
Prices are always expected to form and follow trends, even at random. It is more likely for a price to continue a past trend than to move erratically.
Technical Analysts base their predictions on the observation that history tends to move in circles and thus repeat itself. They attribute historic price movement to market psychology based on fear or excitement. By trying to pinpoint these emotions when analysing chart patterns and understanding movement trends, analysts aim at predicting future price movement from market sentiment.
Peter Iosif
Senior Research Analyst
Chartered Accountant (ACA), Member of ICAEW
All trading involves risk. It is possible to lose all your capital.