TECHNICAL ANALYSIS OF THE FINANCIAL MARKETS

Financial markets represent a space for trading financial assets. They are driven by supply and demand - the first term refers to the product amount a seller can offer potential buyers at a specific price. The second is the item amount a buyer can purchase for the price determined by the seller. Supply and demand create value by exchanging value (commonly referred to as trading). Since these markets are digitized nowadays, they are analyzed using digital tools. However, before you delve into that, you must familiarize yourself with a few crucial players in the financial market game. As you'll learn from the thorough explanations provided in this book, financial market analysis requires the study of current and market events and prices to predict future trends. Financial market analysis lies on two pillars - technical analysis and fundamental analysis. The first allows you to evaluate the financial impact of political and other economic events on several levels - from changes in employment rates to wars. Fundamental analysis helps you identify short and long-term trends and changes in the trading sector. The events leading to these changes are quantitative (measurable reports) or qualitative (immeasurable changes). This book will give you an immeasurable bargaining tool for performing in-depth fundamental analysis by introducing you to a comprehensive investment philosophy regarding fundamental changes. Technical analysis is the evaluation of the historical price charts to identify distinct trends and patterns - indicators of future market movements. Historical price trends include support and resistance, uptrends and downtrends in specific prices, and much more. Regardless of the cause, asset prices will always fluctuate due to continuous changes in supply and demand conditions. All the economic events affecting investor risks will perpetually drive the demand.