Technical analysis has much in common with the major principles at work in flow analysis. Both focus on behavioural patterns within financial markets. Both claim that market behaviour can indeed impact future prices. In addition, both reflect a belief that markets must move and traders must trade irrespective of whether or not there are changes [...]
Posted on July 4th, 2009 by admin
Filed under: Charting | Comments Off
In addition to flow indicators, there are also sentiment indicators. These do not reflect flows directly going through the currency market, but more indirectly by representing the market’s bias towards exchange rates. A very useful indicator of market sentiment or “skew” is the option risk reversal. This is the premium or discount of the implied [...]
Posted on July 3rd, 2009 by admin
Filed under: Option Flow/Sentiment Models | Comments Off
The Euro-zone capital flows report for September 20015 shows that the Euro-zone, which had been recording monthly capital outflows (combined direct and portfolio investment) from 1999 through the first half of 2001 started to record capital inflows in the second half of 2001 and in September of that year saw the second highest monthly inflow [...]
Posted on July 2nd, 2009 by admin
Filed under: Medium-Term Flow Models | Comments Off
The second way we can approach this general issue of flow analysis is to look at the specific capital flows going into equity and fixed income markets. Here the availability and quality of the data vary widely. For instance, there are data reports focusing on what amounts of money are going into mutual funds. From [...]
Posted on July 1st, 2009 by admin
Filed under: Medium-Term Flow Models | Comments Off
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