We start 2024 by exploring recent fluctuations and projections for the new year. We will see everything from the performance of global stock markets to the movement of assets such as gold and the EURO/USD, discovering valuable insights for attentive investors. By examining trends in markets and global influences, we seek to provide a comprehensive view that guides strategies in the face of the uncertainties and opportunities that present themselves.
Technical analysis
Stock markets sustain year-end rally with low liquidity
The last week of the year reveals ups and downs, with stock markets sustaining a year-end rally while liquidity remains low. We will explore the optimism driven by record highs on Wall Street, the US interest rate outlook for 2024 and the opportunities and challenges in assets such as Gold and the Euro/USD pair. Last week, the New York Stock Exchange accumulated its 8th consecutive week of increase. Despite the sideways closure before Christmas, the week started with new records being set! November’s PCE, weaker than expected, strengthened the prospect of lower interest rates in 2024. American economic data released...
Market Analysis: Oil Soars on OPEC’s Cut
Oil contract prices soared after OPEC confirmed last week’s rumours, announcing a cut of more than 1 million barrels a day, equivalent to about 3% of production. The White House (USA) reacted immediately, accusing the organization of being “reckless”, as limiting production generates a shortage of supply, causing an appreciation of oil that, in the end, generates systemic inflation. Is OPEC the villain? Despite the negative effects, OPEC (Organization of Petroleum Exporting Countries) aims to guarantee the stability and balance of oil prices practiced by member countries. In this case, let’s remember that, although it seems obvious, cheaper oil that...
Bitcoin Forms ‘Death Cross’ and Price Pressure Shows No Sign of Easing
Analysts are turning to technical signals are a slew of news related to renewed crackdowns from China triggered a Bitcoin selloff. The recent downturn has seen the coin lose 40% over the past two months, forming the grim-sounding pattern, The technical analysis has formed a death cross, with its average price over the last 50 days crossing below its 200-day moving average. This indicator is typically seen as a closely-watched technical measure that could be a hint to downward pressure to come. According to Matt Maley, chief market strategist for Miller Tabak + Co., the current formation this time around...
MACD Strategies and Understanding
MACD Definition The MACD, also known as Moving Average Convergence Divergence, is a momentum indicator that signals the strength of the momentum for the underlying financial assets including Forex (foreign exchange trading), shares, commodities, indices and cryptocurrencies. Furthermore, it utilizes moving average crossovers to signal trend changes. The MACD value is calculated by the difference between two exponential moving averages, with more weight placed on recent price action in order to determine momentum changes via exponential smoothing. To apply the MACD indicator on MetaTrader 4 and MetaTrader 5, select Insert>Indicators>Oscillators>MACD. The MACD’s histogram is displayed as the outline of the signal line. Calculations behind MACD By default, the...
Three Must-know Powerful Candlestick Patterns
Despite there are more than 30 or more prominent candlestick patterns, the research team at ZERO Markets has selected the three most powerful and tested candlestick configurations, which can provide traders with more discretions and support for their own trading strategies. These configurations can suit different trading styles, including day traders, position (long term) traders, scalpers, and swing traders. These patterns are also applicable across a variety of financial assets, including Forex (foreign exchange trading), shares, commodities, indices and cryptocurrencies. Basic Characteristics of Candlestick The basic candlestick body is comprised of the open, close, high, and low points (Figure 1). The candle’s real body indicates...
Must-Have FX Trading Tools
It is an exciting prospect to have a career in foreign exchange trading (also known as forex trading or currency trading). ZERO Market’s research team has joined forces and listed some most useful Forex trading tools for our dear customers. Forex trading tools are divided into two main categories: infrastructural components and composed of analysis. This then can be further categorized as fundamental analysis and technical analysis. Trading Platforms A reliable and fast trading platform is essential. It allows traders access to financial markets, to trade forex or other financial assets such as shares, commodities, indices and cryptocurrencies. The most popular trading platforms among retail traders are MetaTrader...
What is Forex Volume?
Unlike exchanges that process stocks via a clearinghouse, the forex market is comprised of several commercial banks, proprietary trading firms, hedge funds, and individual traders. The fragmented nature sees forex transactions operate via electronic platforms in the absence of clearinghouse and a primary exchange. The foreign exchange market is decentralized and processed over-the-counter (OTC), which is an off-exchange transaction between two parties. This makes measuring the overall forex volume impossible. As a result, the volume data investors see on MetaTrader 5 (MT5) and MetaTrader 4 (MT4)platforms are fed by the broker. This means the volume reflects the trading activity of the broker’s clients and not the...
A Trader’s Guide: Fundamental Analysis Vs. Technical Analysis
This is a guide to the beginner or experienced traders who are looking to start their investing journey or looking to enhance their trading skills. What is Fundamental Analysis: Fundamental analysis is based on decomposing the factors including external and market events that may influence the price of an underlying asset. This form of analysis is a good starting point for those who believe in valuing assets based on their intrinsic value. The building blocks for good fundamental analysis come from the following: 1) The source and timing of the information 2) The lasting time effect of the information Advantage: Fundamental analysis allows trader to...