The order used by currency investors to close positions automatically when they reach a certain price threshold for automatic profit-taking.
It is the examination of the market situation by means of graphs. The primary objective of the analysis is an attempt to predict future price trends, usually on the basis of phenomena that occurred in the past. The vast majority of participants in the Forex market base their investment decisions on technical analysis.
More on technical analysis
Short-term treasury bonds issued for one year or less. These are securities without interest, sold at a discount and redeemable on the day of performance at a nominal price.
It indicates the direction in which the market follows. Three types of trends distinguished: the upward trend – peaks and bottoms arranged at increasingly higher levels, the downward trend – peaks and bottoms arranged at increasingly lower levels and the lateral trend – peaks and bottoms are at similar levels, otherwise known as horizontal movement or consolidation.
The most popular technical analysis tool included in most patterns. To determine trend lines, it is enough to just join peaks and bottoms. There are two types of trend lines: the upward and the downward. The line of the upward trend arises when we join greater and greater bottoms. In contrast, the downward trend line results from joining increasingly lower peaks. The trend lines have many uses in the technical analysis, they are fundamental in the determination of support and resistance. But they are also used as components in more advanced technical formations including e.g. channels and wedges.
A technical formation usually promising the continuation of an ongoing trend. It consists of two lines through the maxima and the minima. Only after such designation, we can talk about the proper shape of a triangle formation. The buy signal is generated after breakout of the upper edge – often with an adjustment movement.
Tripple Witching Hour
This occurs when stock options, index futures and index options expire. This takes place once every three months on the third Friday of March, June, October and December.