How to Use Trading Central
Trading Central is a certified member of three Independent Research Provider (IRP) associations - Investorside Research, Euro IRP and Asia IRP. Other than these, it is also a Registered Investment Adviser (RIA) for the US Securities and Exchange Commission (SEC).
The signals given out by Trading Central are used by investors to work out their strategies and pick up the finer points of technical analysis. These signals incorporate a variety of analytical approaches into the forecasting methodology, providing a very valuable tool for traders under all market conditions and time frames.
Trading Central Signals
The Methodology Used
Acclaimed as the leading provider of technical strategies worldwide, Trading Central also offers deep market knowledge and expertise. However, reading signals and understanding them is not that easy and requires some expertise too.
Trading Central uses a unique approach, backed by years of research and time-tested indicators. The approach is tested and validated on the main asset classes and suits all types of investors, regardless of their approach to trading, ranging from intraday to long-term traders.
The research combines:
- A chartist analysis, conducted to determine price direction and targets.
- The use of mathematical models, to confirm this direction and to determine the timing relevance.
In order to trigger trading alerts and ideas, a rigorous selection of proven traditional indicators is added to the sophisticated mathematical models. In addition, to obtain confirmation of market reversal or acceleration, Japanese candlesticks and their signals are used.
Trading Central's team consists of highly qualified and experienced professionals who conduct research using this unique methodology. The strategies are offered for all classes of assets, including equities, indices, currencies, commodities and interest rates.
Principles of Technical Analysis
The basic principles on which analysis is based include:
The Market Takes Everything into Account
The first and most basic principle of technical analysis is that the entire history of the financial instrument has to be reflected, i.e., all the available information about it at a given moment in time must be shown accurately. The previous changes in the market may be used to predict future prices, if the market is liquid.
Trend is Essential
In order to be successful in the longer run, you may follow a trend and stick to it at any given moment in time.
Price is a Reflection of Psychology
All prices are a result of conflicts between buyers and sellers. Psychological effects play a vital role in it. Different states of mind and opinions may lead to different decisions, even in the same situation. Analyzing the majority opinion helps in acting efficiently in the market. Technical analysis may not provide you the reasons for the rise and fall of prices but measures their evolution, helping you to estimate their future behaviour.
The Market Can Be Irrational
An investor’s hopes, ambitions and moods are not taken into consideration but may often produce exaggerations in the market. Technical analysis is an essential tool for integrating this psychological dimension of the markets.
How to Use These Signals While Trading
Experienced forex traders monitor future economic events in an attempt to predict currency movements and act in time to make the most of the economic announcements. They usually already calculate the impact on their currency pair and plan their trade accordingly. They also tend to lay greater emphasis on specific indicators that they believe will be the most influential or meaningful for their currency pair.
How they use the economic calendar is that they keep track of approaching announcements. What usually occurs is that economic experts forecast the measures that are likely to be announced. The forex trader then uses these forecasts to price in the value into their currency pair, responding to currency movements before others have a chance and thereby maximising their gains. The reality is that economic events can alter the direction of currency movement within seconds and the quicker you respond with a trading decision, the more likely you are to gain. Of course, making a profit would ultimately depend on whether you have been able to predict the movement or volatility accurately. Often it is not about the actual data that comes out but whether the data is outside of expectations. So if for example people expect an NFP number of new jobs added to come in at 130,000 and it comes way above or below that number, then it’s possible to see some large moves for the US dollar in response.
Users' guide to Trading Central indicators for MetaTrader MT4. What are signals indicators, installation, features and upgrading.