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EDUCATION
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Category Why is it important Indicator
NATIONAL ACCOUNTS National accounts broadly present output, expenditure and income in an economy. GDP, Balance of Payments, Current Account, Capital Account
SECTORIAL PRODUCTION, ORDERS AND INVENTORIES
This is a more up to date indicator of economic activity than GDP data.
Industrial Production, Machinery Orders, Factory Orders, Capacity Utilisation
LABOUR MARKET Employment is an indicator of economic activity. Unemployment Rate, Non-Farm Payrolls, ADP Employment Report
INFLATION AND PRICE INDICES Inflation data is watched as a guide to future monetary policy and interest rates.
Consumer Price Index (CPI), HICP, Factory Orders, Capacity Utilization
HOUSING MARKET INDICATORS The housing sector is a major part of US and UK economies.
Building Permits, Mortgage Applications, Mortgage Approvals, Housing Starts, Existing Home Sales, New Home Sales, Pending Home Sales, FHFA House Price Index, NAHB Housing Market Index
CONSUMPTION INDICATORS AND CONFIDENCE SURVEYS
Growth in business and consumer confidence can lead to future investment and expansion of the economy.
Retail Sales, Consumer Confidence Index, Purchasing Managers Index, Regional Fed Surveys, Beige Book, Ifo Business Climate Index, Zew Indicator of Economic Seniment, Tankan Survey
CENTRAL BANKSAll central banks have a board that takes decisions on interest rates and monetary policy. Analysts examine the minutes closely for clues to the next move in policy.
Central Banks and Monetary Policy, commodity prices, the stock market and political instability
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Type of Chart About the Chart Benefits
Line ChartLine charts help illustrate supply and demand by mapping time on the X-axis and price on the Y-axis. The most simple of all charts is the line chart which connects a timescale’s closing prices, without giving us any information about the trading range during the selected time interval.
This chart is helpful for understanding the major movements only.
Bar ChartThe top of the vertical line indicates the highest price a security traded at during the day, and the bottom represents the lowest price. The closing price is dis-played on the right side of the bar, and the opening price is shown on the left side of the bar.
Bar charts are very useful to draw trend lines. This type of chart can also detect short term breakouts.
Candlestick Chart
It is a combination of a line-chart and a bar-chart. It records four prices open, close, high and low. If the close price is higher than the open real body is white and if the close is lower than the open real body is black.
Candlestick charts are visually supe-rior to bar charts, and are preferred by traders, because their coloured bodies help to identify trend, support-resistance and trend lines and buy/sell signals.
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High HighUpper
Shadow
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Close Open
Open Close
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SUPPORT LINE
RESISTANCE LINE
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Global OperationsGlobal Leader in Online
Trading with offices in more than 60 cities worldwide
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