Market Calls

The Market Calls placed here may or may not be Live and REAL Time each one will be Identified;
You will may find these on Facebook, Twitter, Google+ and Linkedin.  Although that is for Generally short term Daily market expectations.  If you wish to see Long Term Market Calls you will need to come back to this page often.
List:
1. 2013 Are you Prepared?
2. August 2011 Unfavourable Planetary Alignments.
2.1 August 2011 could be a tough Month for the Stock Market.  Date posted 25thJuly 2011.  NON Live indication of what might be a tough month.

3. Favourable & Unfavourable Planet Alignments in 2012.  NON live indications of Favourable & Unfavourable  planetary Alignments as discribed below.

3.1  Favourable Alignment in October 2012. Date Posted 27/12/2011

3.2 Unfavourable Planet Alignment April 2012. Date Posted 27/12/2011

3.3 Unfavourable Planet Alignment August 2012. Date Posted 27/12/2011

4.0 XJO Double Top & Pennant Formation REAL TIME Posted 15/01/2012

5.0 Further Explanation on Are you Prepared for 2013 Posted 15/01/2012.

6.0 S&P 500 Sqaures Out on the 26th January 2012 at NYSE LIVE Posted 26 Jan 2012 @ 10:14 New York Time
7.0 AUD/USD Targets Date Posted AET 8AM 04/02/2012 REAL TIME.
8.0 TOP in the DOW, S&P 500 & NASDAQ – VIDEO DATE Posted 23/02/2012

Charts & Videos Below

8.0 TOP in the DOW, S&P 500 & Nasdaq – Video Date Posted 23/02/2012


7.0 Target for the AU/USD is $1.19886 and with Extension to $123.795

6.0 S&P 500 Squares Out on the 26th January 2012 at NYSE LIVE Posted 26 Jan 2012 @ 10:14 AM
The S&P 500 Squared out at 1333.47 on the 26th January 2012 @ 10:10.  This was double its Low of 666.79, It made on the 06/03/2009.  Gann said he discovered Securities must Square out.  He did not site a reason but I believe it is because God said “he would bring all things to be know whether Good or Bad”.  In other words all things are squared out.
Points (1) Looking at the Synodic Planet Alignments, as an angle against the backdrop of the stars, they travel a certain number of degrees.
Mars – Earth 120 Degrees -  Moved 4 star signs
Venus – Earth 300 Degrees Moved 10 Star Signs
Mercury-  Earth 360 Degrees – Moved Back to the same spot reative to the Stars.
Ceres – Earth 91 Degrees – Square
Jupiter – Saturn 60 Degrees – Moved two star signs
Jupiter – Neptune 90 Degrees – Square
Jupiter – Pluto 90 Degrees – Square
Ceres – Saturn 90 Degrees – Square
Earth – Saturn 90 Degrees – Square
Vensu – Saturn 90 Degrees – Square
Mercury – Saturn 90 Degrees – Square
Note: that when a cycle goes more than 360 degress I.e. goes round more than once the 360 is dropped off.,  for example 420 degrees becomes 60 degrees (420-360 = 60 degrees).
Point (2) The Square of 52.
Gann used the Square of 52, because the year had 52 weeks in it.  The squaring out took 1056 calendar days or 20*52 (1056).
It also took 728 days Trading Days or 14*52
Point 3 Earth – Ceres Chart below showing 1054 days Calendar Days

Gann box is displayed below to illustrate Gann’s Angles and how the S&P 500 respected the Time and Price Points (angles)

Other points of Anaylsis could be shown to support the above.  Like the Sqaure of 144, the Number 666, the Number 7 and  The Pentagram.  However enough has been shown if you wish to see more on this please email Barry Gumm at barry.gumm@eminance.com.au

5.0 Further Explanation on Are you Prepared for 2013 date posted 15/01/2012.

Within this 17 year Stock Market Correction Cycle, there are other cycles are work notably the 5, 8 and 13 year cycles. (Fibonacci Numbers). The 13 year cycle is due in 2013.  Eminance will reveal the actual cycle due date closer to the time it falls due.  It is enough to know that this 13 year cycle is usually brutal. There is going to be a lot of money made for those who short the market in fact fortunes made for those are not in cash and long the market fortunes lost.  You have been warned.

4.0 XJO Double Top & Pennant Formation REAL TIME Posted 15/01/2012

Eminance has had this chart going for months now since the end of April 2011 (8 M0nths) based on the assumption that the two April highs was a possible Double top.  Only updating it with the black lines when the Market drew a pennant.  April 201o and April 2011 was only 3-4 days short of one calendar year, However it is one Gann’s 360 Degrees formations that he said to watch for.  With this possible double top and the announcement of the Downgrades of European Countries after Market close on the 13/01/2012 USA NYSE time then it is highly likely that this pennant formation will break down over the new few days and over the course of the next month the XJO head down to the targeted 3319 level.  Also note that on the 27/11/2011 Eminance Posted that February 2012 may be tough for the market also there may be a lead up to 2012, its seems we are now receiving the lead up to the unfavourable mathematical formation in February 2012.

3.3 August has 9 unfavourable Planet Alignments.

August 2012 is looking like a tough month.  The chart below is from the 15th August 2012.  Also from a Heliocentric point of view (viewed from the Sun) the Helioalignments seem to hover around the number 153.  153 is a important number it is a perfect 5 month cycle.

3.2  April 2012 has a lot of unfavourable planet alignments below is 27th April 2012.

April is looking like a tough month.  However you should be aware as in August 2011.  Although August was a tough month for the markets the markets were alreadly falling well before August 2011.  Therefore it could be that before April comes along the market may be falling a few months before hand.

3.1

Do not know why but October 2012 has a favourable indication, particularly the 29th October 2012 with 9 favourable alignments.  Maybe this is becuase it is close to the US elections, we will find out as the time draws near.

2. & 2.1

Below are two charts of the Planetary alignments for the 22nd August 2011, Gann used these a lot to accuratley predict future events.  This one is from a man named L. J Jensen Economic Trend Analyst.  He died in 1981 of old age.  In his book titled Astro-Cycles & Speculative Markets he named favouable and unfavouable planetary alignments.  As the planet cycles are a massive elliptical musical clock if you will, (goto www.revampyourmind.com if you wish to read more on this subject) it is wise to make note of these alignments.
The problem with the approach is sometimes, it’s like / sort off telling the markets what to do and therefore subjective.  Mr. Jensen studied the Astro-Cycles in relation to speculative Markets for 40 years.  In January 2011, I went through the whole year for both his Favourable andUnfavourable alignments.  August came up by far the most unfavourable, at the time I did not know why, yet it is only in the last couple of months that the Debt ceiling in the USA has become an issue along with Italy and the European debt problem again..  In other words how is it that a planet cycle can warn of trouble months and years into the future, before man (or politians) realises it themselves?…… goto www.revampyourmind.com then investing Gods wya to find out why…!
Below is a chart of August the 22nd 2011, showing 13 alignment or shapes, triangles for example.  I am not saying it is it going to crash, but the mathematicial clock and Mr Jensen studies suggust it may be a tough month.  The 22ndAugust is the worse day of the month but the whole of August had significantly higher unfavourable alignments than the other 11 mnths of the year.  Natal Chart.
Emphesis Chart 22nd August 2011.
Well As it turned out August was a terrible month for the Markets,  its good to know in advance what may happen, If one is better prepared the returns are so much greater.

Fibonacci Analysis and Elliott Wave Theory

Elliott Wave Theory (EWT)

Ralph Nelson Elliott referred to three important aspects of price movement in his theory: pattern, ratio and time. Pattern refers to the wave patterns or formations, while ratio (the relationship between numbers, particularly the Fibonacci series) is useful for measuring waves. To use the theory in everyday trading, the trader determines the main wave, or supercycle, goes long and then sells or shorts the position as the pattern runs out of steam and a reversal is imminent.

• The Five-Wave Pattern In its most basic form the Elliott Wave Theory states that all market action follow a repetitive rhythm of a five waves in the directions of the main trend followed by three corrective waves (a "5-3" move).
  The advance waves are denoted 1-2-3-4-5 and the retreat waves are denoted a-b-c. In the advance waves' phase, waves 1, 3, and 5 are "impulse waves" and move in the direction of the trend, while waves 2 and 4 are called "corrective waves". After the five-wave advance is completed, a three-wave correction begins denoted a-b-c. In the correction waves' phase, waves 'a' and 'c' move in the direction of the retreat, while wave 'b' heads in the opposite direction.
  
  Note: In the chart shown here an uptrend is described and therefore the advance waves are moving upwards. In a downtrend the descending waves will be referred to in the form 1-2-3-4-5, with the ascending waves addressed as a-b-c.
  
• Wave cycles When a three-wave retreat is complete, another five-wave advance begins and so on, until a reversal is prompted. It is possible to see then, that each five-wave advance can be identified as a single advance wave. Similarly, when viewed from a larger perspective, and vice versa, each wave can be broken down into smaller waves.
  The Elliott Wave Theory classifies waves according to cycle length, ranging from a Grand Supercycle, spanning for decades; to a subminuette degree, covering no more than a few hours. However, the eight-wave cycle remains constant.
  
  Note: The largest two waves, 1 and 2 here, can be subdivided into eight lesser waves that in turn can be subdivided into 34 even lesser waves. The two largest waves, 1 and 2, are only the first two waves in a larger five-wave advance. Wave 3 of that next higher degree is about to begin. The 34 waves that constitute a cycle can be broken down further to the next smallest degree which would result in 144 waves.
  

Fibonacci Analysis

Fibonacci numbers provide the mathematical foundation for the Elliott Wave Theory. While the Fibonacci ratios have been adapted to various technical indicators, their utmost use in technical analysis remains the measurement of correction waves.

• Fibonacci Series Characteristics The Fibonacci number sequence is made by simply starting at 1 and adding the previous number to arrive at the new number:
  0+1=1, 1+1=2, 2+1=3, 3+2=5, 5+3=8, 8+5=13, 13+8=21, 21+13=34, 34+21=55, 55+34=89,…
  This series has very numerous interesting properties:
  + The ratio of any number to the next number in the series approaches 0.618 or 61.8% (the golden ratio) after the first 4 numbers. For example: 34/55 = 0.618
  + The ratio of any number to the number that is found two places to the right approaches 0.382 or 38.2%. For example: 34/89 = 0.382
  + The ratio of any number to the number that is found three places to the right approaches 0.236 or 23.6%. For example: 21/89 = 0.236
  These relationships between every number in the series are the foundation of the common ratios used to determine price retracements and price extensions during a trend.
  
• Fibonacci Price Retracements A retracement is a move in price that "retraces" a portion of the previous move. Usually a stock will retrace at one of 3 common Fibonacci levels - 38.2%, 50%, and 61.8%. Fibonacci price retracements are determined from a prior low-to high swing to identify possible support levels as the market pulls back from a high.
  Retracements are also run from a prior high-to-low swing using the same ratios, looking for possible resistance levels as the market bounces from a low.
  
• Fibonacci Price Extensions Fibonacci price extensions are used by traders to determine areas where they will wish to take profits in the next leg of an up-or downtrend. Percentage extension levels are plotted as horizontal lines above/below the previous trend move. The most popular extension levels are 61.8%, 100.0%, 138.2% and 161.8%.
  
• Advice In reality it is not always so easy to spot the correct Elliott wave pattern, nor do prices always behave exactly according to this pattern. Therefore it is advisable for a trader not to rely solely on Fibonacci ratios, but rather to use them in conjunction with other technical tools.
  

Mathematical Trading Indicators

The mathematical trading methods provide an objective view of price activity. It helps you to build up a view on price direction and timing, reduce fear and avoid overtrading. Furthermore, these methods tend to provide signals of price movements prior to their occurring in the market.
The tools used by the mathematical trading methods are moving averages and oscillators. (Oscillators are trading tools that offer indications of when a currency is overbought or oversold). Though there are countless mathematical indicators, here we will cover only the most important ones.

1. Simple and Exponential Moving Average (SMA - EMA)
2. Moving Average Convergence-Divergence (MACD)
3. Bollinger Bands
4. The Parabolic System, Stop-and-Reverse (SAR)
5. RSI (Relative Strength Index)

Moving Average

A moving average is an average of a shifting body of prices calculated over a given number of days. A moving average makes it easier to visualize market trends as it removes – or at least minimizes - daily statistical noise. It is a common tool in technical analysis and is used either by itself or as an oscillator.
There are several types of moving averages, but we will deal with only two of them: the simple moving average (SMA) and the exponential moving average (EMA).

1. Simple moving average (SMA)
   • Definition The simple moving average is an arithmetic mean of price data. It is calculated by summing up each interval's price and dividing the sum by the number of intervals covered by the moving average. For instance, adding the closing prices of an instrument for the most recent 25 days and then dividing it by 25 will get you the 25 day moving average.
     Though the daily closing price is the most common price used to calculate simple moving averages, the average may also be based on the midrange level or on a daily average of the high, low, and closing prices.
     
   • Advantages Moving average is a smoothing tool that shows the basic trend of the market.
     It is one of the best ways to gauge the strength a long-term trend and the likelihood that it will reverse. When a moving average is heading upward and the price is above it, the security is in an uptrend. Conversely, a downward sloping moving average with the price below can be used to signal a downtrend.
     
   • Drawbacks It is a follower rather than a leader. Its signals occur after the new movement, event, or trend has started, not before. Therefore it could lead you to enter trade some late.
     It is criticized for giving equal weight to each interval. Some analysts believe that a heavier weight should be given to the more recent price action.
     
   • Example You can see from the chart below examples of two simple moving averages - 5 days (Red), 20 days (blue).
     
     
2. Exponential Moving Average (EMA) The exponential moving average (EMA) is a weighted average of a price data which put a higher weight on recent data point.
   
   • Characteristics The weighting applied to the most recent price depends on the specified period of the moving average. The shorter the EMA period, the more weight will be applied to the most recent price.
     An EMA can be specified in two ways: as a percentage-based EMA, where the analyst determines the percentage weight of the latest period's price, or a period-based EMA, where the analyst specifies the duration of the EMA, and the weight of each period is calculated by formula. The latter is the more commonly used.
     
   • Main Advantages compared to SMA Because it gives the most weight to the most recent observations, EMA enables technical traders to react faster to recent price change.
     As opposed to Simple Moving Average, every previous price in the data set is used in the calculation of EMA. While the impact of older data points diminishes over time, it never fully disappears. This is true regardless of the EMA's specified period. The effects of older data diminish rapidly for shorter EMAs than for longer ones but, again, they never completely disappear.
     
   • Example You can see from the chart below the difference between SMA (in blue) and EMA (in green) calculated over a 20-day period.
     
     

MACD (Moving Average Convergence-Divergence)

The moving average convergence-divergence indicator (MACD) is used to determine trends in momentum.

• Calculation It is calculated by subtracting a longer exponential moving average (EMA) from a shorter exponential moving average. The most common values used to calculate MACD are 12-day and 26-day exponential moving average.
  Based on this differential, a moving average of 9 periods is calculated, which is named the "signal line".
  MACD = [12-day moving average – 26-day moving average] > Exponential Weighted Indicator
  Signal Line = Moving Average (MACD) > Average Weighted Indicator
  
• Interpretation Due to exponential smoothing, the MACD Indicator will be quicker to track recent price changes than the signal line. Therefore,
  When the MACD crossed the SIGNAL LINE: the faster moving average (12-day) is higher than the rate of change for the slower moving average (26-day). It is typically a bullish signal, suggesting the price is likely to experience upward momentum.
  Conversely, when the MACD is below the SIGNAL LINE: it is a bearish signal, possibly forecasting a pending reversal.
  
• Example of a MACD You can see from the chart below example of a MACD. The MACD Indicator is represented in green and the Signal Line in Blue.
  
  

Bollinger Bands

Bollinger Bands were developed by John Bollinger in the early 1980s. They are used to identify extreme highs or lows in price. Bollinger recognized a need for dynamic adaptive trading bands, whose spacing varies based on the volatility of the prices. During period of high volatility, Bollinger bands widen to become more forgiving. During periods of low volatility, they narrow to contain prices.

• Calculation Bollinger Bands consist of a set of three curves drawn in relation to prices:
  The middle band reflects an intermediate-term trend. The 20 day - simple moving average (SMA) usually serves this purpose.
  The upper band is the same as the middle band, but it is shifted up by two standard deviations, a formula that measures volatility, showing how the price can vary from its true value
  The lower band is the same as the middle band, but it is shifted down by two standard deviations to adjust for market volatility.
  Bollinger Bands establish a Bandwidth, a relative measure of the width of the bands, and a measure of where the last price is in relation to the bands.
  
  Lower Bollinger Band = SMA - 2 standard deviations
  Upper Bollinger Band = SMA + 2 standard deviations.
  Middle Bollinger Band = 20 day - simple moving average (SMA).
  
• Interpretation The probability of a sharp breakout in prices increases when the bandwidth narrows.
  When prices continually touch the upper Bollinger band, the prices are thought to be overbought; triggering a sell signal.
  Conversely, when they continually touch the lower band, prices are thought to be oversold, triggering a buy signal.
  
• Example of Bollinger Bands You can see from the chart below the Bollinger Bands of the S&P 500 Index, represented in green.
  
  

The Parabolic System, Stop-and-Reverse (SAR)

The parabolic SAR system is an effective investor's tool that was originally devised by J. Welles Wilder to compensate for the failings of other trend-following systems.

• Description The Parabolic SAR is a trading system that calculates trailing "stop-losses" in a trending market. The chart of these points follows the price movements in the form of a dotted line, which tends to follow a parabolic path.
  
• Interpretation When the parabola follows along below the price, it is providing buy signals.
  When the parabola appears above the price, it suggests selling or going short.
  The “stop-losses” dots are setting the levels for the trailing stop-loss that is recommended for the position. In a bullish trend, a long position should be established with a trailing stop that will move up every day until activated by the price falling to the stop level. In a bearish trend, a short position can be established with a trailing stop that will move down every day until activated by the price rising to the stop level.
  The parabolic system is considered to work best during trending periods. It helps traders catch new trends relatively early. If the new trend fails, the parabola quickly switches from one side of the price to the other, thus generating the stop and reverse signal, indicating when the trader should close his position or open an opposing position when this switch occurs.
  
• Example of an SAR parabolic study You can see from the chart below in green the Parabolic System applied to the USDJPY pair.
  
  

Relative Strength Index (RSI)

The RSI was developed by J. Welles Wilder as a system for giving actual buy and sell signals in a changing market.

• Definition RSI is based on the difference between the average of the closing price on up days vs. the average closing price on the down days, observed over a 14-day period. That information is then converted into a value ranging from 0 to 100.
  When the average gain is greater than the average loss, the RSI rises, and when the average loss is greater than the average gain, the RSI declines.
  
• Interpretation The RSI is usually used to confirm an existing trend. An uptrend is confirmed when RSI is above 50 and a downtrend when it's below 50.
  It also indicates situations where the market is overbought or oversold by monitoring the specific levels (usually “30” and “70”) that warn of coming reversals.
  An overbought condition (RSI above 70) means that there are almost no buyers left in the market, and therefore prices are more likely to decline as those who previously bought will now take their profit by selling.
  An oversold condition (RSI below 30) is the exact opposite.
  
• Example of RSI You can see in red from the chart below the Relative Strength Index of the GBPUSD pair.
  

Support and Resistance

Support and Resistance are lines that illustrate the ongoing battle between the buyers (the bulls) and the sellers (the bears).

• Support levels indicate the price where the majority of investors believe that prices will move higher. As the price declines towards support and the price become cheaper, buyers become more inclined to buy and sellers become less inclined to sell.
• Resistance levels indicate the price at which a majority of investors believe that prices will move lower. As the price moves towards resistance and the price becomes higher, sellers become more inclined to buy and buyers become less inclined to sell.

See below a graph representing the support and resistance of the EUR/JPY.

As long as the price of a security moves between the support and resistance level, the trend is likely to continue. A break beyond a level of support or resistance can be the sign of:

• An acceleration of a trend
• A reversal of a trend

When a resistance level is broken, its role is reversed and it becomes a support level. Similarly, when a support level is broken, that level becomes a resistance level.
You will see below a graph representing a trend acceleration of the AUD/JPY where a resistance becomes a support level.

Support and resistance analysis is used by technical traders to make trading decisions and identify when a trend is accelerating or reversing. Being aware of these important levels should affect the way you trade and help you significantly improve your performance.

Charts

A price chart is a sequence of prices plotted over a specific time frame. On the chart, the vertical axis represents the price scale while the horizontal axis represents time.

Chart properties

When looking at a chart, there are several factors that you should be aware of as they affect the information that is provided. They include the time frame and the price scale used.

• Time frame Each bar, candlestick or dot in a chart contains information regarding a defined time interval. The length of this interval is the chart interval.
  Deciding on which chart interval to use depends on your trading style and investment horizon. Day traders may use chart intervals as short as 1 minute, while swingers (traders that hold trades between several days to a couple of weeks) usually use intervals varying from several hours to a day.
  
• Price Scale There are two methods for displaying the price scale along the y-axis: arithmetic and logarithmic.
  On an arithmetic price scale, each price point is separated by the same vertical distance no matter what the price level. Each unit of measure is the same throughout the entire scale. If a stock advances from 10 to 100 over a 6-month period, the move from 10 to 20 (+100% variation) will appear to be the same distance as the move from 90 to 100 (+11% variation). Even though this move is the same in absolute terms, it is not the same in percentage terms.
  On a logarithmic scale, each price point is separated by a vertical distance that is equal in percentage terms. An advance from 10 to 20 would represent an increase of 100%. An advance from 20 to 40 would also be 100%, as would an advance from 40 to 80. All three of these advances would appear as the same vertical distance on a logarithmic scale.
  

Type of Charts

There are three main types of charts that are used by traders depending on the information that they are seeking and their individual skill levels. The chart types are: the line chart, the bar chart and the candlestick chart.

• Line Chart INTERPRETATION: The line chart is the most basic type of chart. The line shown in the chart connects single prices over a selected period of time. The most popular line chart is the daily chart. Although any point in the day could be plotted, most traders focus on the closing price, which they consider the most important. However this presents an immediate problem; using a daily line chart, one cannot see the price activity that occurred during the rest of the day.
  BENEFIT: A line chart gives the trader a fairly good idea of where the price of an asset has traveled over a given time frame.
  
• Bar Chart
  
  INTERPRETATION: Each vertical bar represents one period of price activity from the chosen periodicity, which could be as short as 1 minute for intraday charts, or as long as several years for historical charts. On a daily chart, the vertical bar represents one day's trading whereby:
  + the top of the bar represents the market's high price
  + the bottom of the bar represents the low
  + the left hash mark on the bar indicates the opening price
  + the right hash mark on the bar indicates the closing price
  BENEFIT: By including open, high, low and close information, bar charts allow more detailed analysis than standard line charts.
  
• Candlestick Chart
  
  INTERPRETATION: The candlestick chart is closely related to the bar chart, as it also represents the four major prices: high, low, open, and close. Each candle represents a timescale of your choice. The following timescales are offered by different chart software: 1 min, 15 min, 30 min, 1 hour, 2 hour, 4 hour, 8 hour, daily, weekly and monthly.
  For a daily chart, each candlestick represents one day's trading range and is displayed as "open" or "closed":
  + An open candlestick represents a higher close than open and is shown in blue.
  + A closed candlestick represents a lower close than open and is shown in red.
  Each candlestick consists of two components, the real body and the shadows:
  + The real body is the thick part of the candlestick that represents the open and the close
  + The thin lines above and below the real body are the shadows that represent the session's price extremes. The upper shadow (above the real body) measures the high of the session and the lower shadow (below the real body) measures the low of the session.
  BENEFIT: The candlestick chart is the most common chart used for technical analysis. Many trading strategies are based upon patterns in candlestick charting.
  

Technical Indicators

Trend is the most important concept in technical analysis. A trend designates the general direction of a market movement. It is important to identify trends so that you can trade with them rather than against them.

Types of Trend

A trend may be:

• Upward – this is called a Rally ; the market trends the way up
• Downward – this is called a Downtrend ; the market trends the way down
• Sideways / Horizontal – this is called "flat market" or "trendless" ; the market trends nowhere

Trend Lengths

A trend of any direction can be classified according to its length

• Short-term Trend ; it usually lasts no more than three weeks
• Intermediate Trend ; it usually lasts somewhere between 3 weeks to several months
• Long-Term or Major Trend ; it is considered to last for a year or more. It is composed of several intermediate trends, which often move against the direction of the Major Trend

Trendlines

A trendline is a simple charting technique that consists of connecting the significant highs (peaks) or the significant lows (troughs) to represent the trend in the market. These lines are used to clearly show the trend and also help in the identification of trend reversals.
A trendline may be classified as:

• Rising trendline
• Declining trendline
• Sideways trendline

Example:

On the chart below, you can see a representation of a long-term upward trend in the EURUSD, along with a rising trendline.

 

Channels

A price channel is the addition of two parallel trendlines that act as strong areas of support and resistance. One trendline connects a series of price highs while the other connects a series of lows. A channel can slope upward, downward or sideways. Traders expect a given security or currency to trade between the two levels of support and resistance until it breaks beyond one of the levels. They used channel lines to point out where to place "take profit order" and "Stop Loss Order".
You can see below a chart of an upward channel in the S&P 500 Index.

http://www.markets.com/education/technical-analysis/technical-indicators.html

What is Technical Analysis?

Technical analysis is a technique used to forecast the future direction of prices through the study of historical market data, primarily price, volume and open interest.
Technical traders use trading information (such as previous prices and trading volume) along with mathematical indicators to make their trading decisions. This information is usually displayed on a graphical chart updated in real time that is interpreted in order to determine when to buy and when to sell a specific instrument.

Dow Theory

The ideas of Charles Dow, the first editor of the Wall Street Journal, form the basis of modern technical analysis. They are based upon three main premises:

1. The price is a comprehensive reflection of all market forces. At any given time, all market information and forces are reflected in the prices.
2. Prices move in trends that can be identified and turned into profit opportunities.
3. Price movements are historically repetitive.

• Advantages of Technical Analysis It requires much less data than fundamental analysis. From price and volume, a technical trader can obtain all the information he needed.
  As it is focused on identifying trend reversal, the question of timing to enter a trade is easier to address with technical analysis.
  
• Drawbacks of Technical Analysis Technical analysis can become a self fulfilling prophecy. When many investors, using similar tools and following the same concepts, shift together the supply and demand, this can lead to the prices moving in the predicted direction.
  

Technical and/or Fundamental Analysis

Technical Analysis is one of the most significant tools available for forecasting financial market behaviour. It has been proven to be an effective tool for investors and is constantly becoming more accepted by market participants. When used in conjunction with fundamental analysis, technical analysis can offer a more complete valuation, which can make the difference in executing profitable trades.

http://www.markets.com/education/technical-analysis/what-is-technical-analysis.html

Main Macroeconomic Indicators

Macroeconomic indicators are statistics that indicate the current status of the economy of a state depending on a particular area of the economy (industry, labor market, trade, etc.). They are published regularly at a certain time by governmental agencies and the private sector.
Markets.com provides an Economic Calendar for the dates of critical fundamental announcements and events. When properly used, these indicators can be an invaluable resource for any Forex trader.
In truth, these statistics help Forex traders monitor the economy's pulse; thus it is not surprising that these are religiously followed by almost everyone in the financial markets. After publication of these indicators we can observe volatility of the market. The degree of volatility is determined depending on the importance of an indicator. That is why it is important to understand which indicator is important and what it represents.

• Interest Rates Announcement

  Interest rates play the most important role in moving the prices of currencies in the foreign exchange market. As the institutions that set interest rates, central banks are therefore the most influential actors. Interest rates dictate flows of investment. Since currencies are the representations of a country’s economy, differences in interest rates affect the relative worth of currencies in relation to one another. When central banks change interest rates they cause the forex market to experience movement and volatility. In the realm of Forex trading, accurate speculation of central banks’ actions can enhance the trader's chances for a successful trade.
  

• Gross Domestic Product (GDP)

  The GDP is the broadest measure of a country's economy, and it represents the total market value of all goods and services produced in a country during a given year. Since the GDP figure itself is often considered a lagging indicator, most traders focus on the two reports that are issued in the months before the final GDP figures: the advance report and the preliminary report. Significant revisions between these reports can cause considerable volatility.

• Consumer Price Index

  The Consumer Price Index (CPI) is probably the most crucial indicator of inflation. It represents changes in the level of retail prices for the basic consumer basket. Inflation is tied directly to the purchasing power of a currency within its borders and affects its standing on the international markets. If the economy develops in normal conditions, the increase in CPI can lead to an increase in basic interest rates. This, in turn, leads to an increase in the attractiveness of a currency.

• Employment Indicators

  Employment indicators reflect the overall health of an economy or business cycle. In order to understand how an economy is functioning, it is important to know how many jobs are being created or destructed, what percentage of the work force is actively working, and how many new people are claiming unemployment. For inflation measurement, it is also important to monitor the speed at which wages are growing.

• Retail Sales

  The retail sales indicator is released on a monthly basis and is important to the foreign exchange trader because it shows the overall strength of consumer spending and the success of retail stores. The report is particularly useful because it is a timely indicator of broad consumer spending patterns that is adjusted for seasonal variables. It can be used to predict the performance of more important lagging indicators, and to assess the immediate direction of an economy.

• Balance of Payments

  The Balance of Payments represents the ratio between the amount of payments received from abroad and the amount of payments going abroad. In other words, it shows the total foreign trade operations, trade balance, and balance between export and import, transfer payments. If coming payment exceeds payments to other countries and international organizations the balance of payments is positive. The surplus is a favorable factor for growth of the national currency.

• Government Fiscal and Monetary policy

  Stabilization of the economy (e.g., full employment, control of inflation, and an equitable balance of payments) is one of the goals that governments attempt to achieve through manipulation of fiscal and monetary policies. Fiscal policy relates to taxes and expenditures, monetary policy to financial markets and the supply of credit, money, and other financial assets.

Conclusion: There are many economic indicators, and even more private reports that can be used to evaluate the fundamentals of forex. It's important to take the time to not only look at the numbers, but also understand what they mean and how they affect a nation's economy.

Source: http://www.markets.com/education/fundamental-analysis/main-economic-indicators.html

What is Fundamental Analysis?

Fundamental analysis is a method that attempts to predict the intrinsic value of an investment. It is based on the theory that the market price of an asset tends to move towards its 'real value' or 'intrinsic value'.
Fundamental analysis in Forex entails predicting the price valuation of a currency and its market trends by analyzing current economic conditions, government policy and societal factors within a business cycle framework. Forex Traders gauge a country's economic state by examining macroeconomic indicators covering:

• Interest Rates Announcement
• Gross Domestic Product (GDP)
• Consumer Price Index (Inflation) and Spending Indicators
• Employment Indicators
• Retail Trade and Consumer Confidence
• Balance of Trade Surplus or Deficit
• Government Fiscal and Monetary Policy

Visit our economic indicators page and learn more about the different indicators and their impacts on the markets.

Fundamental Analysis Benefits

Determining the intrinsic value of an investment

Identifying long-term investment opportunities

Fundamental Analysis Drawbacks

Too many macroeconomic indicators and indicator can confuse novice investors

Source: http://www.markets.com/education/fundamental-analysis/what-is-fundamental-analysis.html