When, in the 80s computer-based trading appeared on Wall Street, the environment reaked of gold diggers. Profits that had been hardly conceivable until that time, were now being realized as the result of automatic trading algorithms. Within a short period of time, stock exchanges were technically revolutionized, thus redefining the rules and balance of power […]
Central bank policy and monetary system Since the financial crisis, the global trend that the central banks are pursuing is evident. Currently, an expansive monetary policy is being propagated by central banks, which was originally intended to rescue the traditional banking system. However, this policy is now being further continued in the hopes of achieving the vision of eternal growth without recessionary periods. Low […]
Technical analysis (TA) is an observation of the historical price movements of an asset.These observations are used to discuss possible future forecasts. Technical analysis is a frequently used instrument in trading with various assets. TA is particularly popular in trading with crypto-currencies, as the price is determined exclusively by supply and demand of the market participants. As different as the approaches to analyze a price trend may be, there are a few common denominators: Principles of Technical Analysis The only basis for decision-making is the price trend. This reflects the historical investor(s) behaviour. It reflects sentiment, rational and irrational decisions. Through the information acquired via TA, a forecast can be generated from historically recurring patterns. The current price is the equilibrium between supply and demand of all market participants; effectively it is a weighted factor that reflects all opinions and decisions. Thus, the TA deals exclusively with the price development. Fundamental data is not important. Because of this, TA of prices are not an exact science. Due to the mass of indicators, their formations and interrelationships, price charts can be interpreted in many ways. Even the selected time interval can provide different results on the possible future course of prices. Price movements are not purely coincidental. Trends arise. It is preferably traded with the trend (trend is your friend). The chances are better to earn money with the trend than against a prevailing trend. The trading volume confirms, confirms a trend. TA only works when trading activity is brisk, i.e. when price movements are meaningful. Technical analysis does not predict the future “Forecasts are based on probability, not on a result that can be expected with certainty. The aim is to identify trading opportunities with a low risk and potentially high return profile”. The approaches of technical analysis and their interpretations are diverse and extensive. There is a huge selection of approaches and approaches. Therefore, one should not strictly cram the approaches, but find out the best approach for oneself personally. An introduction to technical analysis can be found here. Rules, which you should follow when trading, can be found here. * Originally published in German at CVJ.ch
The following rules can pave the way to a successful trading strategy: Define a strategy Your strategy should be based on the fundamentals that you have observed or learned in the market. Technical analysis, i.e. the closer examination of price movements, is an important tool for this. Analyze the market and try to discover recurring patterns. Develop a strategy and […]
The crypto-phenomenon is a global one. Public blockchain networks such as bitcoin or ethereum are not controlled by a state or a company. Rather, they connect people from different walks-of-life across national borders. Yet, despite all this decentralization, this new world, where the primacy of the digital rules, needs points of contact with the physical world. In other words, even blockchain needs a home. Outgoing Federal Councillor Johann Schneider-Ammann offered his hand to […]
The internet has developed rapidly over the last two decades. It has become the lifeline of our everyday lives. While our toasters now can exchange information with their manufacturer, we keep up to date with what’s happening, send and receive messages, download videos or romp around on platforms. The internet has fundamentally changed the way […]
What is crypto currency? Crypto-currencies are digital means of payment that are managed by a central office and are cryptographically encrypted. The first functioning crypto currency was bitcoin, which has been in existence since 2009. Now there are now hundreds of other crypto currencies. What is the idea behind cryptocurrencies? Crypto-currencies are supposed to be an alternative […]
