classical trade theory proposes three methods for the analysis of financial markets:
- Fundamental analysis.
- Coach (screen) for analysis.
- The empirical (graph) analysis.
Fundamental analysis is based on the study and comparison of macro-economic financial market and economy as a whole during a previous time interval.
The amount of these parameters can be significant and the correlation (mutual influence between the two) is very large.
Access to the parameters of the organization, although his account and the analysis requires the creation of the analytical structure equipped with all personnel and engineering experts to the availability of mathematical models of economic processes and maintenance hardware and software.
Therefore logical that this fact is the fundamental analysis of financial markets in trade is mainly used by large financial structures, banks, etc.
It is clear that fundamental analysis is nearly inaccessible to dealers only.
Technical analysis is based on the study and comparison of the significance of the technical parameters of the financial markets for a certain period of time before, as the number of bids, the rate of change of the elements of trade cost, etc. by through technical indicators.
As the technical indicators are described as purely mathematical formula, which are simple to program and thus the basis of Internet commerce automated calls.
Therefore, in practice excludes the market research and business choice.
technical indicators have been their shortcomings key is inertial.
The indicator shows a point of entry and exit point in a market with a lag when the market “already done” these points to a certain distance.
These distances are the more, probability is the less to receive the income and probability is the more to receive the loss there.
The merchant is able to influence the size of these distances and is forced to just wait, with indicators, after the completion of a number of transactions that the overall gain will generally be more than the total loss.
It is clear that trade using technical analysis has similarities with a game in the roulette red or black.
But, unlike a roulette where the probability of a 50х50 price also depends on a case, the probability of profit in the trade using technical indicators in general are above, not the total loss probability.
Thus, the trade based on technical analysis of financial markets in general revenue guarantee from the operator, if the dealer can not affect the size of the income and living conditions of their reception.
In addition, the operator does not need to “work as a chef, is mechanically linked only signal indicators that it only if it is performed by the program written by him.
The empirical analysis is based on the study and comparison of the significance of the parameters of financial markets by visual observation.
A topic considered here is to show that the market moves in the form of the program, so that the horizontal axis (horizontal axis) represents the time variation in the setting step (1 minute 5 minutes 15 minutes etc. ), and a vertical axis (vertical axis) is a change in the elements of trade costs.
The fourth property of financial markets, in this case, the screen is in the program’s ability to “draw” a certain figure numbers that characterize the market behavior in the time interval and can not predict with any degree of probability that most of market behavior.
These figures hardly yield to mathematical description, which are nearly impossible to schedule, can be identified visually unique.
Therefore, contrary to a technical analysis, empirical analysis of financial markets provides a direct exchange of the merchant in this process.
It is a concept as to the forefront as a quality of a figure.
What ‘more qualitative, the figure is lower than it is to “defects” have, and the closer to “standard”, which is probably an expected direction of market movement.
Since the quality of a figure can be described mathematically, the evaluation of the quality depends entirely on the skill of the operator.
If the operator is qualified for an accounting period which was identified as qualitative data, the probability of making profitable trades is 100%.
Therefore, the probability of occurrence of unprofitable operations is close to 0%.
Therefore, the effectiveness of the negotiation with the use of empirical analysis of financial markets depends entirely on the skill of the operator and does virtually no risk component.
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