Global Market Trends Analysis Software – Learn How to Identify Market Trends.

Global Market Trends Analysis Software – Learn How to Identify Market Trends.

What is Market Trend Analysis?

All financial markets will go through periods where they exhibit a trend to move in a certain direction. From individual stocks and shares to global indices, commodities and forex, each one will regularly show a tendency to either move up or down. These trends are obvious when you look at historical price charts, in which you can often see trends which last for months at a time.
These market trends can be very profitable for investors who are able to identify them. They can provide very valuable trading signals telling you whether or not you should buy or sell a particular stock, index or commodity In fact market trend analysis – the art and science of identifying market trends, is one of the main types of technical analysis (investor research using charts and tools). If you can identify a medium or long term trend close its beginning, or even in the middle, and then trade with the trend until close to its end you can make very good profits. But, of course, this is not nearly as easy as the description makes it sound. A market can last for hours, days, weeks or months – potentially even years. So just because you spot one in historical price information, doesn’t mean that it will continue.

Read more at http://marketcurator.com/global-market-trends-analysis-software-a-free-guide/#7b1XoEORuqPucBoy.99

The Importance of Timing in Trend Analysis

Timing is absolutely key to trend analysis. Being able to identify when a price movement becomes a sustained trend can help you to get in close to the beginning and ride it all the way to substantial profits. Careful analysis and comparisons can identify different stages in the development of a trend, and give some indications of whether or not it is likely to last and even for how long. It is also possible to spot indicators which give a forewarning of when a trend is likely to turn and if a correction may be on the cards in the near future.

Identifying and Using Global Market Trends

As I wrote at the start of the article, you can identify trends for individual stocks and shares. This should only be used, however, in combination with a careful consideration of the company’s fundamentals and your own intuition about their products and management team. Although identifying a trend in the price movement of a particular share can be useful, it  does not necessarily mean that this will influence the future price movement for that stock.
In my personal opinion broader global market trends are much more useful. Generally speaking, the broader a trend is the larger the number of different factors which are involved. This can make your identification more reliable, but it also means that the price movement is less likely to turn without warning on a single piece of news which you couldn’t have predicted.
You can also use global market trends to help inform more specific investment decisions. If your analysis is giving a buy signal on a specific share within a market (such as the Wall Street Index) which is also giving you a global buy signal, for example, you have twice the reason to think that you are onto a winner.
Read more at http://marketcurator.com/global-market-trends-analysis-software-a-free-guide/#7b1XoEORuqPucBoy.99


Share this

Related Posts

Previous
Next Post »