Monday, 29 October 2012

Market Forecasting Secrets for Traders and Investors

Market Forecasting is the science and art of determining in advance when a market is most likely to change direction and can also be the probable duration of the expected move.
Market Analysis is all about taking current price data and the use of technical analysis and / or fundamental analysis to determine what the market has done and what it is doing, and may or may not include the market Forecasting .
If market projections, the extent to which it is recorded strong analyst to another. The method of forecasting can be as simple as anticipating the intersection of a line indicator or the response to the outbreak of a degree of resistance, or as sophisticated as the very date to predict when the market is likely to change direction (new trend direction or the beginning / end of a trend correction).
The method of forecasting involved in my analysis of the price data is very advanced and of course property. The science behind my work is strongly based on the mathematics of market cycles. Market Cycles a roadmap for future price direction and the likely culmination of a movement to a new.
There are several approaches to the analysis of price data for cycle footprints. These cycles are exposed to oscillators and moving averages (indicators), following seasonal influences, and even control the various planetary bodies and the effect it has on the earth (products and psychology).
A trader or investor can do quite a bit of market forecasting without really delve into the technical aspects that I use for my clients. Here are some suggestions to help you get started in determining the trend and the probable duration.
Start with the weekly price chart.
Using a weekly price chart, where each price bar represents one trading week, find the beginning of a new movement. What that means is finding a definite swing bottom or top where the new direction starts from.
Usually the prices tend to change direction on Fibonacci points in time. For example, searching for a possible turn 3 bars later than 5 bars later than 8 and so-forth. If you are not familiar with Fibonacci, much has been written on this subject.
Please note that not only can you do this for each clearly defined swing top or bottom, but they overlap. For example, you can note that a certain week in 8 weeks of a previous top / bottom, and also 3 weeks from the most recent top / bottom.

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