Elliott Wave Analysis
A method of technical analysis of financial markets based on the theory of Ralph Nelson Elliott. The basic assumptions of this approach suggest that markets move in waves, creating a system of five waves in the pursuit in accordance with the direction of the main trend followed by three corrective waves in the opposite direction.
Empire State Manufacturing Index
A survey conducted by the Federal Reserve on manufacturing companies in the US. It measures their bosses’ feelings about the economy. The most traced part of this report is the business confidence indicator, responsible for the overall attitude of manufacturers to the economy. The report also contains a section with responsibility for employment and sales. The starting level is zero, any value below means that the sentiment is deteriorating, any value above means the contrary.
A report published monthly, consisting of a whole set of labour market indicators, such as the unemployment rate, average salary, wages in the economy, excluding agriculture. The latter is considered to be the strongest influencing the Forex.
A technical formation consisting of two candles imaging a market where opposing forces are winning the hitherto trend. The final evaluation should take into account the place in which they appear. For example, if a formation confirms the important area of support, its importance as a trend reversal signal will be greater. The basic definition of the engulfing pattern is that the second of the two bodies must comprise the first body of the opposite colour.
European Central Bank (ECB)
The central bank called for the common European currency – the euro. Its main task is to maintain price stability in the euro area.