Fundamental Indicators – A Crystal Ball? : stocks


Introduction

If you are somewhat familiar with investing and trading, you undoubtedly already had contact with indicators. Many inexperienced traders solely focus on Technical Indicators used in Technical Analysis to predict price changes of one asset based on current trends or technical patterns in the charts.

There are other categories of indicators, as well. In this article, I’d like to introduce you to a simplified model of the financial markets, a theory that is built on top of that model, and two indicators that give you an (albeit imperfect!) crystal ball to provide you with a clearer picture of the economic conditions in the future.

Instead of Technical Analysis, we look into the methodology of Fundamental Analysis. Economic indicators measure the current state of economies and allow the prediction of growth (or shrinking) of industry sectors, regions, or even the global economy.

Economic Backdrop

Let’s start with building a simplified model of financial markets. Like every model, it simplifies the real world but should allow valuable forecasts for the future.

The movements of financial markets on very short timeframes (seconds, minutes, hours) seem entirely random. We can identify phases where markets move up and down in cycles on higher timeframes…

Fundamental Indicators – A Crystal Ball?



Source link

Related articles

The Advantage of Endurance: Why Conservative Buying and selling Wins within the MQL5 Market – Buying and selling Methods – 17 September 2025

Within the fast-paced, usually exhilarating world of algorithmic buying and selling, it is simple to get swept up within the pursuit of fast...

Logitech’s Professional X2 Superstrike gives haptic clicks and fast set off

Logitech’s subsequent flagship wi-fi gaming mouse is ditching mechanical switches for an analog system outfitted with haptics actuators to simulate the sensation of a click on. The mouse is known as the Professional...

REX Shares Claims Its DOGE And XRP Spot ETFs Will Be Accepted By US SEC Tomorrow

US-based REX Shares has stirred vital anticipation within the crypto group by asserting the launch of its Dogecoin (DOGE) and XRP exchange-traded funds (ETFs) on September 18.  Imminent Launch Of REX Shares’ DOGE And...

The European indices shut blended German DAX and UK’s FTSE 100 rising

Main European indices are closing the day with blended outcomes:German DAX +0.13%France's CAC -0.40%UK's FTSE 100 +0.14%Spain's Ibex -0.24%Italy's FTSE evaluation was the worst performer with a decline of 1.29% different markets, the...

10 Greatest Worth Shares For Excessive Complete Returns

Revealed on September seventeenth, 2025 by Bob Ciura The concept behind worth investing is to purchase belongings for lower than they're price. The bigger the discrepancy between worth and worth, the larger the margin...
spot_img

Latest articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

WP2Social Auto Publish Powered By : XYZScripts.com