Indicators DZ and RDZ: Essence, Methods of Calculation, Signals and Rules of Trading
Investment Management and Financial Innovations, Volume 8, Issue 3, 2011
8 Pages Posted: 3 Oct 2014
Date Written: July 6, 2011
Speculators exert more and more influence on prices on world exchange markets. Often the result of this is a formation of so-called “bubbles” with subsequent shocks to national and global economy. The purpose of speculators is earnings in a relatively short period of time using the differences in prices for exchange assets. Most of the speculators as a reference point for decision-making use technical analysis methods (prediction of future prices based on previous prices).
Using more sophisticated methods gives advantage and opportunity to earn on a relatively short-term fluctuations in the exchange markets.
General rules of technical analysis applied to all types of exchange markets – foreign exchange and stock markets, commodity markets and markets for derivative financial instruments. Thus, developing of a new technical indicator or trading strategy for FOREX (foreign exchange market) can be applied to analyze prices of gold or oil, stock indices and stock prices.
Keywords: technical analysis, indicator, oscillator, normal distribution
JEL Classification: C15, G10, G14
Suggested Citation: Suggested Citation