The S&P500 looks pretty cheap these days. Low interest rates set by the Federal Reserve make it easier for both retail and institutional investors to get into the market. Low interest rates mean that businesses and consumers can borrow money cheaply (i.e. at low interest rates). This money can then be used to buy homes, consumer goods, new buildings for businesses, new R&D – you [...]
Continue
Gold and silver prices are never easy to predict. Economic experts nearly always have different opinions about where prices will sit at the end of each quarter or year. Most economists agree that prices for gold and silver follow the rhythm of geopolitical climates. Gold and silver prices, whether high or low, are usually a direct reaction to economic and power struggles worldwide. Experts believe [...]
Continue
For indirect currency pair, the domestic currency is the quote currency and the foreign currency is the base currency. That means the quote indicates how many domestic currencies are needed to purchase one unit of foreign currency.
Continue
Head and shoulders is a classical chart pattern. It is one of the popular and most reliable trend-reversal patterns, meaning that the price is likely to move against the previous trend. There are two types of head and shoulders pattern: ‘Head and shoulders top’ and ‘Head and shoulders bottom’, the first one occurs in an uptrend and later one in a down-trend.
Continue
Hedging is a type of investment intended to nullify potential losses that may be incurred by another investment. In simple terms, when you hedge, you insure yourself in case of a negative event. Hedging is widely used in Forex.
Continue
Using Harmonic patterns one can point to a specific area which can be the possible turning points on the price chart of any currency. It makes use of Fibonacci extensions and Fibonacci retracements. Harmonic patterns are effective because the guesswork is least and the pattern depends on the fixed Fibonacci numbers.
Continue
The Hanging Man candlestick pattern is a bearish reversal pattern. Just like its name, the candlestick looks like a hanging man. It is characterized by a small real body near the high of the candle. The real body can be black or white, although a black candlestick is preferable. It has a long lower shadow that should be at least twice the length of the [...]
Continue
Hammer is a candlestick chart pattern used in technical analysis. It is made up of only one candle. As the name suggests the candle looks like a hammer. It has a long lower shadow and a short body at the top of the candlestick with little or no upper shadow, the lower shadow must be at least two times longer than the length of the [...]
Continue
Fundamental analysis is a way of predicting future currency value by studying the economic, political and social factors that are relevant for the currency. fundamental analysts study the supply and demand for the country’s currency, products or services, quality management, government policies, past and forecast of performance, future plans and all the economic indicators like Gross Domestic Product (GDP), industrial production, interest rates, international trade, [...]
Continue
Forex stands for ‘Foreign Exchange’. Forex market is a global, worldwide financial market for trading currencies. Forex is a decentralized market meaning it does not have one physical location or exchange like in stock market where all the trading happens. It is the most liquid financial market in the world. It has the largest daily volume of around US$ 4 trillion dollars. Forex market contains [...]
Continue