Basic Analysis

Market Opportunity Analysis

In the words of T.I. Glushakova, situational analysis is: the "heart" of the rationale for the marketing plan; it is a foundation on which to justify your decisions and the reasons for the chosen approach; an assessment of how the goals, objectives, strategies and tactics of the departments of a given enterprise correspond to the premise and plan, support them and help to fulfill them.

Market analysis is the collection of data and its interpretation in order to find out where you occupy or intend to occupy in the market, and to get an idea of ​​​​the requirements for specific products or the content of marketing programs. Market analysis is based on identifying the size of the market and its segmentation (breaking the market into quantitative categories with homogeneous characteristics), identifying the structure of the market, existing trends, shares and the relationship between structures within the market and beyond.

Any company should be able to identify emerging market opportunities. No firm can rely forever on its current products and markets. Many firms will attest that most of their current sales and profits come from products they either didn't produce or sell even five years ago. Companies may feel that their capabilities are very limited, but this is just an inability to mentally see the future of the business they are engaged in and recognize their strengths. After all, in reality, any company has many market prospects open to it. An organization may seek new opportunities either occasionally or systematically. Many people find new ideas by simply keeping a close eye on changes in the market. Company executives visit specialized exhibitions, study competitors' products, collect market information in other ways.

Analysis of market trends and market environment

Knowing market trends is always important, but it is especially important for developing marketing plans. Ultimately, the company will decide which markets to serve, which can bring it a large volume of sales, both in the short term and in the long term. The marketing planning process determines at what stage of development the markets are, which allows you to correctly allocate resources. The study of market trends, as a result of which a general picture of the market is built, consists of an analysis of the actual trends and statistical data of the market.

Any organization has factors over which it has no direct control, but which affect the company itself and the performance of its commercial activities. These are aspects such as social pressures, laws, regulations, politics, technological change, economic booms and busts, as well as more "narrow" factors related to the activities of suppliers and competitors. Together they make up the market environment.

A market can be defined as a collection of people or companies who require specific products or product classes and who have the ability, desire, and authority to acquire them. The market can be divided into segments: each segment is a group of buyers with similar characteristics, as a result of which they have relatively the same needs for products.

To make sound strategic decisions, a company must have quantitative information about market trends. Then you should pay attention to the potential financial value of the market for the company. Below is a list of major market trends that should be considered in the marketing planning process.

Sales: volume.

Sales: turnover.

Profitability.

Market size.

Market shares.

Number and size of buyers.

Number of main competitors

The market environment can be defined as the set of external forces that directly or indirectly affect an organization's revenue generation and output. In other words, these forces represent various aspects that are almost beyond the control of the company, but which can significantly affect the way the company conducts business and performs its tasks. To keep track of changes in the market environment, firms must regularly survey and analyze it. Some companies do this individual workers or entire committees whose function is to collect and verify data on market trends and various aspects of the market environment.

Environmental survey is the process of obtaining information from observations, secondary sources (primarily industry press and government reports), databases, information services, and market research. As a rule, the market environment is divided into two main areas: the macro environment and the micro environment.

The microenvironment of an enterprise is those entities with which the enterprise constantly and directly interacts. Elements of the microenvironment are those aspects that are peculiar only to individual companies or organizations, and not to the market as a whole. The degree of control a company has over these factors is usually low.

The elements of the microenvironment include:

Direct and indirect competition

Influence of suppliers

Resource Availability

Purchasing power of consumers

The macro-environment of the enterprise is the factors that your enterprise does not directly encounter, but which, nevertheless, have a serious impact on its activities. The macro environment has two important features: it affects not only the enterprise itself, but also the micro environment: competitors, partners, customers; the enterprise cannot influence the macro environment.

The elements of the macro environment are:

Legal forces

Regulatory forces

Political forces

Social forces (culture)

Technological Forces

Economic situation

To analyze the macro environment of an enterprise, secondary information is used, which can be obtained from publications of the State Statistics Committee and its regional divisions, from newspapers and magazines, the Internet (including industry portals, websites of specialized firms, etc.). Once the information has been collected, each document should be evaluated for validity and relevance, and checked for consistency with other information at your disposal. To analyze the microenvironment of an enterprise, secondary information from the sources listed above, as well as data collected at industry exhibitions, can also be used, however, it is additionally recommended to collect primary data on buyers, suppliers, competitors. To do this, you can use the two most popular methods of collecting primary data - observation and survey.

Introduction.

Most often, it is necessary to know the future values ​​of such indicators as the price of goods on the market, the volume of demand, the volume of own sales, the volume of production and sales of competitors, market conditions, the structure of the product range of competitors. The value of such knowledge increases significantly in an aggressive market environment with a volatile nature of demand, in conditions of seasonality and cyclicality.

The forecast can be expert, or it can be calculated mathematically using predictive models. Mathematical forecast is objective, open and scientifically grounded. Only mathematical predictive models allow for multivariate modeling. A mathematical predictive model is a mathematical model economic system: the market as a whole, an individual enterprise or a group of interrelated enterprises. Such a model is developed to calculate the predictive values ​​of one or more indicators of the system under study.

The use of predictive models is permissible under conditions of stationarity of the system under study. This means that the rules of the game in the market must be known and these rules must not change much over time. At its core, a predictive model is a model of the rules of the game in the market. Factors and strategies of market players may change. These changes are taken into account by the model, which allows it to calculate accurate forecasts.

A mathematical predictive model is a set of formulas with coefficients that are formed in the process of model development, at the stage of numerical modeling. Factors selected during the development of the model are substituted into the formulas at the stage of qualitative modeling.

Analysis of market trends.

Effective market activity is impossible without a comprehensive, comprehensive analysis of the current state of the market and forecasting the dynamics of further changes in its conjuncture.

Market conditions are the state of the market or a specific economic situation that has developed on the market at the moment or for a limited period of time under the influence of a complex of forces, factors and conditions.

An important element of market analysis is the analysis of trends in the development of market conditions. Knowing market trends is always important, but it is especially important for developing marketing plans. Ultimately, the company will decide which markets to serve, which can bring it a large volume of sales, both in the short term and in the long term. The marketing planning process determines at what stage of development the markets are, which allows you to correctly allocate resources. The study of market trends, as a result of which a general picture of the market is built, consists of an analysis of the actual trends and statistical data of the market.

Any organization has factors over which it has no direct control, but which affect the company itself and the performance of its commercial activities. These are aspects such as social pressures, laws, regulations, politics, technological change, economic booms and busts, as well as narrower factors related to the activities of suppliers and competitors. Together they make up the market environment.

A market can be defined as a collection of people or companies who require specific products or product classes and who have the ability, desire, and authority to acquire them. The market can be divided into segments: each segment is a group of buyers with similar characteristics, as a result of which they have relatively the same needs for products

So, the trend of market development is an economic and statistical concept that characterizes the pattern of changes in its main parameters over time.

To make sound strategic decisions, a company must have quantitative information about market trends. Then you should pay attention to the potential financial value of the market for the company. Below is a list of major market trends that should be considered in the marketing planning process.

Sales: volume.

Sales: turnover.

Profitability.

Market size.

Market shares.

Number and size of buyers.

Number of main competitors

On the basis of statistical information, time series of indicators are constructed that characterize changes in the main market parameters (enlargement of the interval of the dynamic series; moving average method; analytical alignment of the time series), and then the growth and growth rates are calculated.

Enlargement of the time series interval. The meaning of the reception is to move from smaller intervals to larger ones: from monthly to quarterly, from quarterly to annual, etc. The levels of the enlarged series are calculated by summing the levels for the periods included in the new interval, or by calculating the average level for the enlarged interval.

moving average method. To determine the moving average, we form enlarged intervals consisting of the same number of levels. Each subsequent interval is obtained by gradually shifting from the initial level of the dynamic series by one level. Then the first interval will include levels y 1 , y 2 , .... y m ; the second - levels y 2 , y 3 , .... y m +1 and so on. Thus, the smoothing interval, as it were, slides along the dynamic series with a step equal to one. Based on the formed enlarged intervals, the sum of the values ​​of the levels is determined, on the basis of which the moving averages are calculated. The resulting average refers to the middle of the enlarged interval. If there is an even number of levels, an additional centering procedure is required. Moving averages can be calculated on enlarged intervals of different duration. The size of the interval must be chosen in such a way as to obtain a clear trend in the development of the process.

Analytical alignment of a series of dynamics. Allows you to get a description of the smooth line of development of the series. In this case, the empirical levels are replaced by levels that are calculated on the basis of a certain curve, where the equation is considered as a function of time. The form of the equation depends on the specific nature of the dynamics of development. It can be defined both theoretically and practically. Theoretical analysis is based on the calculated indicators of dynamics. Practical analysis - on the study of a line chart.

The task of analytical alignment is to determine not only the general trend in the development of the phenomenon, but also some of the missing values ​​both within the period and beyond. The method of determining unknown values ​​within a time series is called interpolation. These unknown values ​​can be determined:

1) using a half-sum of levels located next to the interpolated ones;

2) by average absolute increase;

3) by growth rate:

, where y 0 and y 1 are the levels of the dynamic series of the base and reporting periods, respectively.

More reliable way identifying the main trend in the development of the market lies in the construction and graphical representation of trend models. Their essence lies in the redemption of random deviations from the line averaging the actual data and expressing graphically and mathematically the main development trend.

Trend is a graphical or mathematical expression of the pattern of dynamic development, i.e. reflection of the main trend of changes in the phenomenon under study.

This method has the advantage that it determines not only the vector, but also the average rate of development, as well as its nature.

Its essence lies in the fact that the change in the phenomenon is considered as a function of time: yt=f(t), where

t is the number of the level (period, date) of the dynamic series

To build trend models, equations are used that are selected according to the minimum residual variance. The general formula of the corresponding equations is:

and where

y t is the leveled (smoothed) value of the dynamic series levels;

a is a free term of the equation, not economically interpreted;

b i - i-th parameters equations characterizing the speed or acceleration of market development;

e is the base of the natural logarithm;

t is the number of the dynamic series level (period, date);

n - number i-th parameters in the equation.

To calculate the parameters of trend models, standard computer programs are used, and for linear models, a system of normal equations can be used.

However, in practice, the system of normal equations can only be used to a limited extent: for models constructed from a function of no more than a second order. Otherwise, more than three equations will have to be solved.

Basic trend equations.

Power.

It is difficult to accurately predict the future, but you can try to understand where the modern financial world is heading. Seventy-five years ago, the World's Fair was held in New York, where the public saw a new and unknown technology called television. At that time, many people did not know what to do with television, and the New York Times claimed that television would not be interesting to the average American family, since people needed to sit and keep their eyes glued to the screen all the time.

Today, humanity has learned to better analyze trends and predict the future. Of particular interest are forecasts for the development of the capital market, since this area has a high degree unpredictability. Experts identify three modern tendencies, which will drive the markets in the coming years and are good indicators for smart investors.

First global trend- these are demographic changes in the world community and the aging of the world economy.

Humanity began to age rapidly, people began to relax more and monitor their health. This has resulted in a shorter working period and reduced working hours per week. Many people began to try to retire early in order to safely use the accumulated assets. pension funds and long-term savings programs have made it possible to accumulate enough funds for a comfortable old age. But the aging of the world's population leads to the transition of the financial world to a new level and dramatically changes market priorities. In the future, the number will increase pension savings and retirees seeking fixed income, creating a structural imbalance in the sector. Therefore, the yield on bonds, real estate and other assets will be significantly lower. These phenomena can already be seen in the US, Japan, Europe and China, where populations are rapidly aging and the workforce is shrinking. Investors will look for higher returns in bond funds or use a diversified strategy. But they'll all have to use Insurance companies and those will have to look for additional funding.

second world trend is urbanization and reurbanization.

People began to move more, migrating from villages to cities. High rates of urbanization are observed in developing countries, but in the USA and European countries there is also a rapid merging of suburbs and cities. Experts believe that reurbanization is associated with the priorities of young people who do not want to live in the suburbs and are trying to change their lifestyle. Many of them prefer the urban lifestyle and this trend will only grow. Demographic changes have resulted in people renting more than they are buying. Currently, the rental housing market will be more important to investors than the mortgage market.

The third global trend is too much production of goods.

Since the second half of the twentieth century, there has been a tendency for an oversupply of goods and industrial production. The increase in productivity and the urbanization of industry have dramatically changed the pricing policy of many companies. There is a significant deflationary trend in global markets, and new technologies such as 3D printing are only exacerbating this problem. Some experts believe that the marked oversupply of commodities is debatable. But if we consider the entire cycle of production of goods, we can notice an increase in offers for many types of products. This is especially evident in the energy, metallurgical and food industries. High prices for many goods have resulted in greater savings in consumption and increased supply in the markets.

Investors need to remember that the world tomorrow will be very different from today. At the same time, capital markets are an integral part of this evolution, so by analyzing trends and challenges, solutions for future investment can be developed faster.

Effective market activity is impossible without a comprehensive, comprehensive analysis of the current state of the market and forecasting the dynamics of further changes in its conjuncture. The most complete study of the state of the market and make a reliable forecast of its development allow marketing tools.

Market conditions (from Latin Conjungere - I connect, I connect) - this is the state of the market or a specific economic situation that has developed on the market at the moment or for a limited period of time under the influence of a complex of forces, factors and conditions.

The main goal of studying the market situation is to determine the nature and degree of its balance, primarily the relationship between supply and demand.

The conjuncture is measured by a certain range of qualitative and quantitative features that can be measured and evaluated. These features of the conjuncture can be realized only with sufficiently complete statistical information about the state of the market.

Market conditions have three fundamentally distinctive features: variability, cyclicity, dynamism. The market is inherently prone to spontaneity, and therefore, is subject to fluctuations, both random and constantly manifested: cyclical and seasonal. Therefore, estimates of variability, characteristics of the development cycle, gradations of the state of the market are a necessary condition for marketing activities for making commercial decisions.

The need to study market conditions is determined by the essence of modern marketing, its clearly defined orientation to the interests of the market. Therefore, market analysis is an important part of marketing analysis and marketing research in general. It has a strong influence on all stages of the marketing cycle. The position of the company in the market, its chances for commercial success, the choice of strategy and marketing activities are largely dependent on external conditions and, in particular, on market conditions.

Market conditions have four fundamentally distinctive features. Consequently, market analysis should also reflect these four characteristics:

Analysis of dynamic patterns, trends;

Proportional development;

Market stability analysis, its evaluation in statics and dynamics;

Market development repeatability analysis, selection of cycles.

The market, the scale of which is formed in space, develops in time. Dynamism is the most important property of the market, its ability to renew itself, grow or shrink, or remain stable. Characterization of changes in market parameters, the phenomenon of its development trends, expansion prospects is the first task of market analysis. The spatial limitation of the market is manifested: firstly, in the number of its participants, secondly, in the volume of transactions, thirdly, in its hierarchical structure. There are four levels of the hierarchical structure of markets: international, federal, regional, municipal (local).

The spontaneity of the market, although limited within certain limits by marketing, remains its main feature. It is, as it were, embedded in the market mechanism. Changes in the main parameters of the market in some periods of time occur at different rates, which leads to short-term or longer-term disturbances in the proportionality of the market process, to deviations from the main development trend. The desire of supply and demand for balance manifests itself as a tendency aimed at overcoming the emerging imbalances, manifesting itself in the form of constant fluctuations in time and space.

The state of the market can be characterized through a system of quantitative and qualitative indicators, each of which reflects a certain side of the market situation.

The main indicators of market conditions are the following indicators:

market scale- its capacity, the volume of operations for the purchase and sale of goods (commodity turnover), the number of enterprises of various types operating on the market;

degree of market balance- the ratio of supply and demand;

market type- (competitive, monopolistic, etc.);

market dynamics- (changes in the main parameters of the market, their vector, speed and intensity, main trends);

degree of business activity- (the volume of the company's economic portfolio, the number and size of orders, the volume and dynamics of transactions, etc.);

the level of stability of the main parameters of the market in dynamics and space(economic - indicators);

market risk level(assessment of the probability of being defeated in the market);

strength and scope of competition(number of competitors, their activity);

market cycle(market position at a certain point/stage of the economic or seasonal cycle);

average rate of profit(sum of gross and net profit and profit margins).

Just as the commodity market is a constituent element market economy, the conjuncture of the commodity market is part of the general economic conjuncture. Many processes in the commodity market are explained or caused by the situation in other markets. Therefore, a deep study of the commodity market should be comprehensive, linked to assessments of different types of markets: valuable papers, services, investments, real estate, labor, etc. The securities market is sensitive to market fluctuations in the commodity market. Such comprehensive assessments serve as the basis for attempts to build an integral model of the conjuncture - an economic barometer.

Market analysis

Analysis of market conditions should begin with a description of the scale and type of market. The scale of the market is determined by the volume of goods sold, as well as the number and size of firms acting on it as sellers. Firms are ranked by size and ownership, and by market share. The qualitative characteristic of the share (large, medium, small, etc.) is derived from a comparison of the share owned by the company and the share of the largest competitors.

The assessment of the scale and type of the market is complemented by a description of the potential of the market, which determines the possibilities of a product offer and consumer demand. The market potential is divided into production and consumer. The production potential determines the marginal possibilities of the product offer. Accordingly, consumer potential is determined by the magnitude of demand and the dynamics of its possible changes.

The second most important characteristic of the market is its balance. The characteristic of the market balance is determined by the ratio of supply and demand. The balance or equality of these two main categories is not very common, the ratio between them is constantly changing. This, in particular, is one of the manifestations of the spontaneity of the market. The balance or imbalance of supply and demand determines the type of market (seller's market or buyer's market). To analyze the balance of the market, various methods are used: balance, ratios of dynamics indicators, indirect - with the help of indicators, informal and expert assessments. The complexity of the market balance analysis lies in the fact that if the product offer is a documented indicator, then demand cannot be directly assessed (demand is a potential category that exists in the mind of the buyer and in his wallet). Of course, the main regularities and trends in demand can be judged by the turnover (realized demand) or the purchasing funds of the population, but in fact, demand, for a number of reasons, may not significantly coincide with it. Still, imputations need to be taken into account.

The essence of the calculation is as follows: the volume of the product offer is determined (according to data on the receipt or actual sale of goods), and the population's purchasing funds are calculated (income adjusted for the increase in savings minus mandatory payments). After determining, thus, the commodity supply and demand, their comparative assessment is made and a conclusion is made on the balance of the market.

Commodity stocks are sensitive to any changes in the balance of supply and demand. The excess of demand over supply causes a reduction in inventories, and the excess of supply over demand (or their qualitative discrepancy) is immediately accompanied by an increase in inventories (overstocking). The balance of supply and demand is a necessary condition for stability commodity markets. Commodity stocks in this case serve as an indicator of market conditions.

An important element of market analysis is the analysis of trends in the development of market conditions. The market development trend is an economic and statistical concept that characterizes the pattern of changes in its main parameters over time. The essence of the analysis is to determine quantitative estimates and models of market dynamics that characterize changes in the market situation: a growing / developing market, a stable (developed) market, a declining market.

To determine the vector and rate of market development, dynamic series of indicators characterizing the main parameters of the market are built, and then the growth rates are calculated. Market development trends are determined on the basis of an analysis of changes in its main indicators (deliveries, sales, prices). Dynamic series or their graphic images (diagrams) are visually examined, and on this basis a descriptive characteristic of trends is given.

The dynamic development of the market is characterized by the phenomenon of cyclicality, i.e. the repetition of trends and intensity of development. This phenomenon is due to both external factors and deep, internal properties of the market. There are intra-annual, seasonal cycles and economic cycles, covering several years, and reflecting the patterns of the market mechanism. Market cyclicity is changes in the level, vector, speed and nature of its development that are regularly repeated in time.

Seasonal cyclicality is due to the seasonality of agricultural production and seasonal and climatic changes in consumer needs. The simplest way to identify seasonal fluctuations is to calculate the seasonality index, which is defined as the ratio of each level to the corresponding average value calculated over a year, or over several years. The seasonality index shows the actual fluctuations in market parameters corresponding to certain seasons.

The second type of market cycle is economic cyclicality. According to economic theory in its development, the market goes through a series of cycles that replace each other according to the principle: rise - fall - rise, etc. The rise of the market leads to its glut, a crisis of sales (overproduction), it is replaced by a depression, a decrease in business activity, a recession, which gradually turns into a revival and rise of the market. The methodology for identifying market cyclicality includes the following fundamental operations: at the first stage, the market parameters that exhibit the greatest fluctuations are selected, and their time series or their graphic images (diagrams) are built. An analysis that allows us to draw conclusions about the change in the main market processes and their movement through the phases of economic cycles.

The adoption of effective commercial decisions is based not only on the analysis of the current situation, but also on the forecast of its further changes. A market forecast is a scientific prediction of the prospects for the development of demand, product offerings, prices, carried out within the framework of a certain methodology, based on reliable information, with an assessment of its possible error. There are groups of forecasts, the basis of which are: extrapolation of a series of dynamics, interpolation of a series of dynamics, calculation of coefficients of elasticity of demand, prices and commodity supply, economic and mathematical modeling, structural modeling, expert assessments, analogy.

Forecasting market elements by extrapolation of time series is the transfer of patterns and trends from the past to the future. The technical method of extrapolation is to extend the current dynamic series of demand, product supply or prices for a certain perspective. It is assumed that all the factors that determine changes in a particular element of the market are unchanged over time. When such an assumption is justified, extrapolation gives fairly accurate forecasts of market development. However, if one or another significant factor changes dramatically in the forecast period, then the forecast error can be quite large. And the longer the period, the longer it is. Therefore, extrapolation as a forecasting method is usually used only for short-term intervals.

The time series interpolation method is to find the missing members of the time series within it. According to the known initial and final levels of the series and the established interdependence of its members, any necessary level is calculated. The application of this method is associated with the need to have developed consumption norms, a reliable determination of the year when this norm was reached, and knowledge of the patterns of development of consumption time series. The accuracy of this method is relatively low. Therefore, this forecasting method is used in marketing relatively rarely. Most often it is used for long-term forecasting.

Extrapolation and interpolation methods do not take into account changes in market factors over time. At the same time, it is well known that demand, commodity supply and prices depend on a large number of factors. It is also known that it is impossible to take into account all factors when calculating the prospects for market development. The method of forecasting using the calculation of demand elasticity coefficients consists in choosing the main determining factors of the market and measuring their influence on a particular element of the market.

Elasticity is the ability of demand to change under the influence of changes in any factor. The elasticity coefficient shows how many percent demand will change when the factor changes by 1%.

Technical analysis great and varied. And there is no number of methods and indicators used in it, fundamentally different in terms of popularity and complexity, in ways of assessing and predicting the situation.

But first of all, every investor and trader begins to draw charts and lines to study price indicators, the relationship between price and demand, determine the direction and range of the trend.

Because trend analysis is a necessary skill for understanding and predicting market behavior, the key to your success. Only following the rules of trend trading will allow you to trade profitably.

Dow theory and the essence of TA, the main types of charts and price channels, trend line analysis and trend movement indicators - read about all this in the article.

Methods of financial analysis

The methods of financial analysis include: horizontal, vertical and trend analysis.

The task of financial analysis is to determine and evaluate the current state of the enterprise, to determine the parameters that are critical and that require management interventions. In other words, an enterprise needs to know its problem areas in order to develop most effectively.

The correct determination of the financial condition of the enterprise is very important both for the owners of the enterprise and for various interested parties: shareholders, potential investors.

1. Horizontal the financial analysis enterprise makes it possible to determine trends in individual items in balance sheet.

This method of analysis is based on determining the growth rate of individual items in the balance sheet or income statement. Horizontal analysis consists in the construction of analytical tables with absolute and relative growth rates of balance sheet items for a certain period.

2. Vertical analysis consists in determining the share of the balance line in the totals. Vertical analysis determines the structure of enterprise funds.

The expediency of this analysis lies in the fact that the transition to relative indicators makes it possible to compare economic potential enterprises of various sizes and volume indicators. In addition, relative indicators smooth out inflationary processes that distort absolute indicators.

3. Trend analysis is one of the varieties of horizontal analysis oriented to the future.

Trend analysis studies the values ​​of indicators over a certain range of time, where the current values ​​of the indicators are compared with their past values. One of the main tasks in trend analysis is to establish patterns of change in indicators over time, as well as to determine its trends.

Source: "beintrend.ru"

What opportunities provide horizontal, vertical, trend analysis methods

Horizontal analysis allows you to determine the absolute and relative deviations of individual reporting items compared to the previous period. For example, when analyzing the balance, the indicators at the beginning and end of the period are compared, and their change is assessed.

Vertical analysis is carried out in order to identify specific gravity individual articles in the overall total, taken as 100%. For example, you can determine the proportion of various items of an asset in the total amount of funds.

Horizontal and vertical methods of analysis are of interest to users within the company, as they allow to catch current changes, to some extent level the impact of inflation.

For example, a significant increase accounts receivable while maintaining its share in the balance sheet currency, it usually does not indicate a deterioration in the payment discipline of partners, and an increase in its share with the same absolute value may indicate problems at the enterprise.

Horizontal and vertical analysis also allow for cross-company comparisons.

Trend analysis can be of great help in decision-making, allowing you to identify trends in change. key indicators activities over a number of years. It involves the allocation of some base period (for example, the year the company was founded) and a comparison of the indicators of all subsequent periods with the base one.

It should be noted that in Russian conditions such an analysis is extremely difficult.

Comparison over a number of years is hindered by a sufficiently frequent change accounting policy in enterprises, constant adjustment of tax and related legislation, inflation.

Thus, trend analysis for external users is currently generally useless and may even lead to erroneous conclusions. In internal analysis, it is possible, but its implementation involves significant work to ensure the comparability of the source material.

Source: economics.studio

Trend analysis is the definition of a trend in the market using a chart

In order to make money on Forex, you need only two things: a price chart and a trend. Understanding these components will give you the opportunity to trade profitably.

Trend analysis (TA) of the market is an important and necessary thing, as understanding how the market behaves is a significant part of your success.

The trend is your friend, following only the rules of trend trading, you can earn, while you really only need a chart and a few lines on it that show the direction of the trend and its range.

Trend analysis is a kind of technical analysis that is aimed at determining the trend in the market using a chart or price indicators of the instrument under study. We note right away that trend analysis can be carried out not only in the forex or stock market, but also in other markets.

For example, the trend in the housing market characterizes the balance of supply and demand. In different seasons, it may have a different direction or the absence of a trend as such. Trend analysis of the organization's balance sheet determines the growth of balance sheet components in a certain period of time.

By the way, it should be noted that this type of analysis always contains a time interval (time frame) as one of the indicators. Thus, technically, such an analysis can be carried out with any product that is sold or bought.

Importance

In addition to trend movements, there is a time in the markets without a pronounced direction, called a flat. During this period, one must be especially careful in trading.

Trend analysis requires practice, but there are important rules that I would like to dwell on in more detail:

• only 30% of the time the market is in a trend movement, the remaining 70% is in a flat;
• trade only with the trend and do not fight against it;
• when analyzing a market trend, always identify the trend cycle (initiation, maturity, and decay);
• trend analysis is a technical method that gives an understanding of what market participants want, sales or purchases;
• analysis of trend directions must be carried out before entering a market position, at the stage of drawing up a trading plan.

If you ask an experienced trader about what he likes most about his work besides making a profit, then almost everyone will answer - look at the price chart during a trend period. The presence of a situation where everything is more or less clear allows you to accurately find the necessary support and resistance levels, entry points to the market and exit from the transaction.

How to conduct

In order to conduct an analysis on your own, you need to find two peak maximum values ​​or two peak minimum price values ​​on the chart. Draw a line through these two points. The direction of the line will show you the direction of the trend.

Below we have presented two charts and an example of trend analysis on them:

And below is a chart that shows a flat in the forex market:

Flaws

It remains to talk about the shortcomings of trend analysis of the markets. Since this method uses the price chart, the errors that occur when determining the direction of the trend depend only on the price. Here are some of them:

1. False breakdowns of levels.

They are confusing, as the price draws a high or low, but it does not fit into the general trend, although it is at first glance an important point through which a trend line can be drawn.

2. Strong volatility.

During the release of macroeconomic data, the market experiences a shock, which ultimately causes strong price fluctuations, which, in turn, are not amenable to technical analysis.

It is better to wait out such moments, being out of the market.

3. Since trend analysis is a type of technical analysis, it does not take into account fundamental factors, which means it is incomplete.

Despite this, during the period of calm trading, it can still be taken as the basis of the strategy.

As you can see, conducting a trend analysis is not only easy, but also an interesting exercise, which will always show in which direction to trade, what trends prevail in the market, and which order should be opened to buy or sell.

Source: "forexidea.ru"

Trend analysis method

A trend or trend is a price movement up or down, since any financial instrument, or rather its price, never stands still, but moves in waves: either rise or fall, and vice versa. The price and its changes should always be closely monitored.

Trend method of analysis - the study of price charts and the application of technical analysis methods. The basis is formed by events that have already taken place and the prediction of their consequences for events that will occur in the future.

Knowing the market trends of the past, it will be possible to predict their behavior in the future. Also, this method is used to determine the demand for goods and services, their need for the consumer, for the product marketing system, etc.

essence

As already noted, a trend is a price movement in a certain direction, depicted on the chart.

According to most traders, Forex prices are always in motion: they fall, then they rise. However, studies show that prices can still be in fairly small ranges for a long time.

There are 3 types of trends:

• Upward (bullish) trend. If such a trend is present, then we should expect a price increase.
• Downward (bearish) trend. If such a trend is present, then we should expect the price to fall.
• Lateral trend. If such a trend is present, then the price is moving in narrow market ranges. Most often, this situation can be seen before a rapid rise or fall in prices.

How is it performed

The first task is to accurately determine the future direction of the trend. The second task is to set the strength of action for the trend.

To solve the first problem, it is necessary to use trend lines and channels, as well as indicators responsible for trend analysis. The second task is solved with the help of some indicators and graphical models.

Each trend is accompanied by a certain trading volume. At the moment when the dynamics corresponds to the trend, the trading volume in the Forex market increases significantly. When prices roll back, the trading volume decreases. If the trend does not correspond to the volume of trades, then it has a weak strength.

When applying the trend analysis method, some rules should be observed:

1. All transactions, without exception, must be carried out exclusively in the direction of the current trend;
2. You can not guess the future trend reversal and bet against it. No need to rely on your own intuition and hope for the weakness of the trend;
3. The trend will be active until clear signs of a reversal are formed. One of the signs is a trend line breakout.

All trends by the time of existence can be divided into:

• Short-term (4-5 days);
• Medium-term (1-2 weeks - several months);
• Long-term (1-2 months - 1-2 years).

Every novice trader should learn how to draw channel lines and trend lines on a time chart (timeframes), since these are the basics of trend analysis, without which it is almost impossible to do without in the future. You need to start with a large time interval, then move on to the average, and then to the small one.

It is very important for all traders who use the trend analysis method to accurately determine the boundaries of the channel that is responsible for prices.

Four main types of price channels

2 types of channels are designed to reduce the trend in the market, the other 2 - to increase. The trend channel combines the lowest and highest prices, at which current positions are closed.

Another important point is the correct construction of the trend channel lines. This is done as follows: draw a trend line, and parallel to it another one. The first line should connect the tops of the chart, and the second line should connect the lowest price values.

The purpose of the trend channel is to fix profit or loss and analyze the current state of the trend.

Even 3 points are enough to plot a trend channel. A channel can be built with 2 maximum and 1 minimum points, or vice versa. Therefore, building a trend channel is a real procedure on any chart.

Today, modern trend extensions are increasingly used in trend analysis. They are formed by duplicating large trend lines and creating new ones. Thus, one can get a detailed overview of the stock market.

Source: "finansovyesovety.ru"

Technical analysis and its components

Charles Dow is the father of technical analysis. Having created the railway and industrial indices, he developed a system for their analysis, which was based on several basic principles. Using many of the analytical findings of the Dow theory, it is possible to carry out technical analysis of various financial markets with great success.

Dow theory

Let us consider in more detail those provisions (postulates) on which the Dow theory is built.

1. Indexes take everything into account.
The essence of this statement is that any factors that can affect the balance of supply and demand will certainly affect the dynamics of the index. It is often impossible to predict or foresee these events, but they are instantly reflected on the index chart.

2. There are three types of trends in the market.

   Dow argued that in any time period of market dynamics, a certain trend can be observed. He identified three types of trends: upward, downward and horizontal.

   
   

   In an uptrend, each subsequent peak and decline is higher than the previous one. When descending - on the contrary, each subsequent peak and decline is lower than the previous one. When horizontal, all peaks and recessions are approximately at the same level.

   Dow also divided trends into three categories - major, secondary and minor:

   • He attached the greatest importance to the main. This trend lasts from a year to several years.
   • The secondary trend lasts from 3 weeks to 3 months and is corrective relative to the main one.
   • Minor trends are corrective for the secondary and last less than 3 weeks.
3. The main trend has three phases:
   • The first phase is called the accumulation phase.

   The market has taken into account all the adverse factors and at this moment the most informed and analytically far-sighted investors begin to buy.

   • In the second phase, those investors who use technical analysis to determine the trend begin active activity.

   All this is fueled by optimistic forecasts for the economic situation.

   • The trend enters the third phase when the market begins to rush and a wide mass of players feverishly begins to buy.

   All the media are trumpeting the economic recovery. Speculation is on the rise. And it is at this moment that those far-sighted investors who "accumulated" their assets begin to sell. The trend ends.

4. Indexes must confirm each other.
The essence of this statement of the Dow theory is that any factors that can affect the course should be reflected in the dynamics of changes in both indices (here Dow meant his two indices - railway and industrial).

5. The volume of trade should confirm the nature of the trend.

This means that the volume of transactions should correspond to the direction of the main trend.

6. The trend is valid until it gives clear signals that it has changed.

This statement speaks for itself, and its essence is fully understood from its formulation.

In the technical analysis of the foreign exchange market, several components or goals can be distinguished, each of which solves its own specific task. Let's consider in more detail the main goals of technical analysis:

• Determine the current trend (direction) of price movement. Three options are possible here: a bullish trend (the price is rising); "bearish" trend (price falls); side trend (flat).
• Estimate the age and lifetime of the trend. The following options are possible: short-term trend; long-term trend; beginning of a trend; trend maturity; end (death) of the trend.
• Determine the volatility (amplitude of fluctuations) of the price in the direction of the trend. Possible options: weak oscillation; strong fluctuation (more than 1% per day or more than 0.3% per hour).

The success of your trading depends on the accuracy of determining these three parameters when conducting trend analysis. With the right definition, you can make decisions to buy or sell a currency with a high degree of confidence.

Main types of price charts

There are five main types of price charts:

1. Linear.

On this type of chart, closing price points are marked for each time interval. It is convenient to use it only for short intervals, a maximum of a few minutes.



2. Bars.

The bar is a vertical bar with two side bars:



The top point of the vertical bar is the maximum price value, the bottom point is the minimum price value, the left side bar is the open price, the right side bar is the close price. This chart type is mainly used for time intervals of 5 minutes or more.

3. Japanese candles.

This figure is a vertical rectangle:



For an empty (white) rectangle, the lower side is the opening price, and the upper side is the closing price. The filled (black) rectangle has the opposite - the upper side is the opening price, and the lower one is the closing price.

The dashes above and below the rectangle indicate the maximum and minimum prices, respectively. It is recommended to use Japanese candlesticks at time intervals of 5 minutes or more.

4. Tic-tac-toe.

When plotting this chart, there is no time axis, and a new price column is built when the price changes its direction:



Each zero or cross means a price change by a certain number of points (reversal criterion), and when the price rises, a zero is drawn, and when the price falls, a cross is drawn.

5. Kagi.

On this type of chart, there is no time axis, as well as on the Tic-Tac-Toe chart. The graph itself is a series of vertical lines connected to each other:

The length and thickness of the lines depends on the dynamics of price changes. The graph is built as follows:

• If the price continues to move in a certain direction, then the length of the line increases.
• If the price changes its direction by the amount of the reversal (a predetermined number of points), then the next vertical line is drawn next to it.
• If the price has overcome its previous high or low, then the thickness of the line increases.

Signals for opening positions are: a transition from a thin line to a thick one (you can buy) or a transition from a thick line to a thin one (you can sell).

trend analysis

A trend, or, as it is also called, a trend, is a price movement in a certain direction. Trend analysis, first of all, allows you to determine the direction of the trend, which is the most important condition for successful trading.

There are three types of trends: ascending, descending and horizontal (lateral). In real life, the movement of prices in financial markets is never straightforward, the dynamics of price changes is a zigzag curve consisting of peaks and recessions. It is the prevailing direction of these very peaks and recessions that forms the trend.

Novice traders in the Forex market need to remember one golden rule: "The trend is your friend"! The consequence follows from it - Never trade against the trend.

There are several concepts that describe the existing trend, which are the basis of trend analysis:

General features and contradictions of figures and trend patterns

All trend patterns, figures and lines share some common features or characteristics. Consider these features below:

• the most likely direction of the trend movement is the current direction;
• only the intersection (“breakthrough”) of the support or resistance level can be considered a signal. Everything that happens up to this point can only be used to determine the emerging trend pattern of technical analysis;
• for any single signal, even a very strong one, confirmation signals of any kind are needed;
• All trend models can be divided into three types: those that warn of a trend reversal, those that confirm the trend, and those that operate within the framework of the current trend. The latter type of models is more correctly attributed to confirming the trend;
• when building graphic models, it is not at all necessary to use straight lines, these can be curves, and even geometric shapes in the form of ovals and circles;
• do not try to look for trends in short periods of time. The trend in this case will be fleeting and the possible profit cannot be compared with the significant size of the possible loss.

In this situation, you may encounter a contradiction in trend directions (a longer trend will be stronger than a short one). Contradictions of trend lines and patterns:

1. when a trend is detected, by building only one common figure, it becomes difficult to estimate the price of opening a position (in such a situation, you need to additionally draw support and resistance lines);
2. the contradiction may be in the difference between the predicted direction of the trend and the current direction. It is especially significant in the case of a trend reversal;
3. conclusions about the trend can also be contradictory if they are based on the analysis of different time periods (for example, the daily trend looks “bullish” and the weekly trend looks “bearish”).

If you have any of the above contradictions, then wait with opening positions until the situation clears up. Be extremely careful when conducting trend analysis.

So, for example, if the breakout of a key level goes unnoticed for you, then you will build all your subsequent analysis on false opinions, which, ultimately, will lead you to very disastrous results. This trend behavior is typical when it accelerates or reverses, when the resistance line becomes a support line and vice versa.

Source: "forex-dostupno.ru"

Forex market trend analysis

The basis of trend analysis is the study of price charts, as well as the application of technical analysis methods on them. Trend analysis is based on the understanding that what happened in the past gives some approximation of what will happen in the future.

It is a way of identifying past market trends in order to possibly determine them in the future. In addition, trend analysis methods are used to determine the demand for services and goods, assess their needs, and forecast the sales system.

Trend as the basis of TA

The trend is the movement of the market price on the chart in any direction.

Most traders believe that currency exchange Forex price either rises or falls. But as it turned out, prices are still in small ranges, sometimes for quite a long period of time.

The trend is classified into 3 types:

• uptrend or bullish trend. The presence of such a trend indicates an increase in prices. He received this name as a comparison with a bull throwing his victim up.
• downward, the second name is a "bearish" trend. The presence of this trend indicates a fall in prices. It is believed that the bear lies with all its weight on the price, thereby lowering it.
• side trend or "flat". Price movement is observed mainly in narrow market ranges. Often, a sideways trend appears before a rapid fall or rise in price.

Main goals

Firstly, it is precisely to determine the future direction of the trend. Secondly, to establish the strength of the trend.

To solve the 1st task, trend channels, lines, and trend analysis indicators are used. To solve the second problem, graphical models and some indicators are used.

Any trend is always accompanied by at least a small trading volume. At the time when the price dynamics will correspond to the trend, the trading volume will foreign exchange market Forex usually strengthens.

When prices roll back (i.e., their decline), trading volume usually decreases. The inconsistency of the trend with the trading volume of transactions indicates a weak strength of the trend, but this is not yet a reason to open exchange transactions against the current market trend, since there are no obvious signs that it will change its direction.

trend analysis Forex market, requires strict adherence to the following rules:

1. All trading transactions must be carried out only in the direction of the trend.
2. A trend is considered active until there are clear signs of a reversal. These signs include - a breakdown of the trend line, with a further change in the direction of the market trend.
3. Do not try to guess the future trend reversal and make trades against it. It makes no sense to rely only on the intuition and weakness of the trend, hoping that its reversal is already close.

By the time of existence, trends are classified into long-term, medium-term and short-term:

• A long-term trend in duration can last from a month to 1-2 years.
• Medium-term type of trend - from a week to several months.
• Short-term trend - exists up to several days.

Every novice trader should learn how to draw trend lines and channel lines on any time frame (time chart), as these are the basics of trend analysis. It is best to start with the largest time frame, gradually moving to trend analysis on a shorter time frame.

Exchange trading trader with open positions longer than 1 day, at best, should be held exclusively in the direction of the long-term trend (only if not otherwise applicable in the rules of his trading system). The primary task of a trader using trend analysis is to accurately determine the boundaries of the price (trend) channel.

There are 4 main types of price channels in trend analysis:

1. The two kinds of price channels are for an uptrend in the market.
2. The other two are for a down market trend.

The trend channel combines the highest and lowest prices, and the position is closed on them. In the trend analysis of the Forex market, a very important point is the correct construction of channel lines. Because they serve as limiters to price fluctuations.

• the first trend line connects the peaks on the chart,
• the second is the minimum price values.

The main purpose of building a trend channel is that it makes it possible to take profit or loss and even analyze the state of the trend.

To plot a trend channel on a chart, only 3 points are enough:

1. For example, it is possible to build a channel by 2 maximum points and 1 minimum.
2. And vice versa - by 2 minimum points and 1 maximum. Therefore, it is quite possible to create a trend channel on any chart.

At present, modern trend extensions are widely used in trend analysis. They are formed by duplicating large trend lines and creating new resistance lines. Based on this, we have a more detailed overview of the market.

Any price channel line is a power line, we need it to analyze and place protective or pending orders.

This trend analysis tool is very simple at first glance. However, despite this, trend channels are very important.

The trend channel becomes the strongest when there are several price waves within it - 2, 3 or more. Based on practice, the most effective trading method is trading from the beginning of the boundaries of the trend (price) channel inward, with stop-loss orders placed outside the channel.

In some cases, the right move may be not just a stop-loss, but a reversal, since going beyond the channel boundaries has always been and is a fairly strong signal. Such a signal is especially significant when the breakout (or going beyond the boundaries) coincides with the direction of the trend.

But if the channel was broken in the opposite direction relative to the trend, then this is rather a signal that the current trend is moving into a side trend, i.e. flat, it can also be a signal of a change in the direction of the trend.

Source: "t-traders.com"

Trend analysis in binary options

Trend analysis in binary options is a fairly significant component that gives an understanding of the behavior of the binary options market and makes it possible to trade as efficiently as possible.

There are several types of trends, and there are also corrective waves on the market that make up the general wave structure of the price behavior of the asset you have chosen. Undoubtedly, you yourself could see how the growth is replaced by a fall, and pullbacks indicate a new strength of the participants who will drive the price further towards the main price movement.

A trend is a stable price trend and to make it easier to find, traders, especially beginners, use technical analysis indicators. Some of them analyze not only the trend, but also its strength in order to enter to buy a binary option at the most convenient point.

Trend analysis is a method of technical analysis that allows you to find the main price trends at a given time and there is nothing complicated about it. It is aimed at identifying and analyzing the trend in the binary options market. Also, you can analyze the price indicators of the asset and the strength of the trend movement.

The trend always characterizes the balance of supply and demand, since any exchange is a market, and this law works in all equally good markets.

Trends replace each other from time to time, there are also rollbacks to the markets, which correspond to the main trend in Fibonacci percentages: 38.2%, 50.0%, 61.8%. You can conduct technical analysis on any asset, and it works best on stocks and currencies.

Each type of trading assets has its own advantages, so you can see for yourself where it works best for you and trade on selected currencies or indices that are available in any terminal of a binary company.

There are several phases of a market movement:

• trend;
• Flat;
• Correction.

A trend is a directional price movement characterized by an excess of demand over supply or vice versa. Most often, price trends are born due to the interventions of central banks, important statistics.

A flat is a sideways trend, which is characterized by erratic price fluctuations in a narrow horizontal corridor. It is quite easy to make money on it, which is what many beginners do.

Correction is a small rollback against the main trend, which is characterized by a smooth price return to recruit new participants.

Most often, such rollbacks can be used by beginning trends to gain new positions along the trend. This is the right decision that allows you to earn quite effectively on the binary options market. Flat price movements are quite pronounced and are not uncommon. During this period, you need to trade extremely carefully, although there is a special contract on binary options "Range (Range)".

Trend analysis can take practice, but it's worth it. Here are the main features that many brokers have hidden from you:

1. Only 30% of the time trading assets are in a trend, the remaining 70% are rollbacks and flat;
2. Work only in the direction of the main trend, because it will be difficult for you to swim against the current at the waterfall;
3. When analyzing the current market trend, try to always determine the "age" of the trend: the beginning, maturity, old age or reversal;
4. By doing trend analysis, you will gain an understanding of what the majority of participants want. If the price is actively growing, then everyone is buying, and if it falls, then everyone has started active sales;
5. It is always important to analyze the trend before entering the market, so as not to worry and not experience emotions about a hastily opened binary option.

Try to analyze the market, even if it is technical analysis or not, while drawing up a trading plan, which it would be desirable to even write down on paper, because the screen will be busy trading terminal rather than Word or Notepad.

When learning to trade in the financial markets, experienced traders understand which phases of the market bring him the most money. Perhaps, you will earn on trends, and, for example, lose on flats. If this is the case, then choose an active trading time, when the main price movements for the trading asset take place on the market.

There are situations when it is worth waiting a bit until the price approaches the support or resistance level. As soon as the situation in the market is completely clear to you, buy a binary option, but hurry with it so that the transaction is carried out with the highest quality. Entry and exit points are very important components of a really good trade.

How to conduct TA on binary options

To conduct trend analysis yourself, you need to mark two peak minimum or maximum values ​​on the chart. Draw a line through these points. The direction of the trend line will indicate the direction of the price trend.

You have an uptrend. As you can see, the chart is directed upwards and we have drawn the trend lines just through the minimum and maximum points.

Also, beginners can make mistakes, so try to “fill your hand” before using technical analysis on a binary options chart.

Let's break down the disadvantages of trend analysis, as every beginner should know them.

• False breakdowns of levels.

They are usually confusing, because if the price makes a low and a high and this pattern does not fit into the main trend of the asset, although these points can sometimes seem quite important and you can mistakenly draw a line through them.

Try, if in doubt, to compress the graph or switch to an older time interval. In this case, you will be able to see the trend more objectively.

Experienced traders can see a trend without trend lines at all.

• High volatility.

At the time of the release of strong news or the speech of influential politicians, financial markets lack liquidity, traders are afraid to trade and the binary options market is in shock. As a result of this, powerful price spikes occur that can change the trend, especially if you are trading turbo options.

A small price range can be destroyed by a powerful candle, for example, during a public consideration of the impeachment of Trump. At such times, try not to trade.

Trend analysis is a subtype of binary options technical analysis, but it does not take into account strong news and fundamental factors, so it is worth avoiding moments of strong news release. You can decide this point using economic calendar.

Strong news here is news with 3 bull heads or dots, who knows how. During periods of calm and measured trading, you can not be afraid to trade according to your strategy. The news will not spoil the technical picture, which means that the effectiveness of trading tactics will be maximum.

Trend analysis is an interesting and simple activity aimed at improving the effectiveness of a trading strategy. Actually, even the price chart itself can be a kind of strategy if you can distinguish between trends, flats and pullbacks, as shown in the example above.

Indicators of the strength of a trend movement

Some binary options brokers allow you to use interesting technical indicators. Sometimes it is very important to analyze the strength of the trend, since the price trend is, in principle, visible to the naked eye. One such indicator is the ADX, which measures the strength of a price trend.

ADX is a unique tool of its kind that allows you to determine the strength of a trend from its beginning to its very end, so you can use it as a leading indicator.

The main band of the ADX indicator is in tandem with two others that are almost mirror images: +DMI and -DMI. The combined use of all indicator lines allows the trader to see the strongest trends or moments of trend acceleration.

The main indicator of the ADX indicator can take values ​​from 0 to 100, and the stronger the trend, the higher values ​​the indicator takes, and vice versa. Most of the time, the indicator fluctuates between 10 and 50.

If its value falls below 20, then this indicates the absence of trends, which means that the market has either a pullback or a flat side range, and you can already determine this even visually.

At values ​​above 40, there is a significant acceleration of the price movement. It is during these minutes or hours that your profit will be maximum.

ADX is an indicator for analyzing the strength of a trend movement in binary options, so looking at this indicator, you can tell if the trend is strong or not.

Indicators over 40 indicate a possible imminent price breakout to some kind of extreme, for example, a new all-time high may occur in a few weeks, especially if it is not far away.

Do not forget that ADX, unlike other indicators and oscillators, indicates the direction of the trend, and its strength, so when ADX rises, the price can both fall and rise. Above 80, do not trade at all on this chart. Such indicators can cause a price reversal.

The intersection of the DMI indicator bands (-DMI and +DMI) does not matter, since the main line here is DMI. Much more important is their behavior at the moment of breaking through the level 40 - the main line of the indicator.

It can be seen here that there was a very powerful breakout of the local maximum point, which coincides with the high indicators of the ADX trend strength indicator, which surpassed the level of 40 and reached 42.5.

The best trend indicator

To date, there are a fairly large number of indicators that fit the definition of trend indicators. For decades, many traders have used the moving average, but now there are more and more such indicators.

By right, the best indicator for determining the trend in binary options is MA50, MA200 and the innovative tool AutoTrandForecast.

Technical analysis in binary options is difficult to carry out without additional indicators.

If we take the same moving average that shows the average price for a certain time period, by its direction on the price chart, you can even visually determine the direction of the main price movement. It smooths out fluctuations so that the trader sees a clear trend, according to which he trades in binary options.

The higher the period of the moving average, be it SMA 20, EMA 60 or EMA 100, the more long-term and stable trend this indicator will show you at the same time, the accuracy of the signals will slightly drop, so you should not choose heavy moving averages, for example, EMA 500.

Use two or three easy movings, for example, EMA 8, EMA 13, EMA 21, to trade as efficiently as possible. You will quickly react to all changes in the market trend, which in 90-95% of cases is predicted by the Moving Average quite correctly.

To date, there are many indicators without redrawing, for example, AutoTradeForecaster.

Many indicators, especially arrow ones, sin by redrawing, but your task is to use those that quite accurately show the reversal point of the price trend. Everything is pretty simple. The red line is a downtrend and the blue line is an uptrend. The signals are very reliable and accurate, so take this indicator into service.