What is AvaTrade's Trading Central and How can I access it?

How to use Trading Central?

Trading Central is an accredited member of three independent research provider (IRP) associations: Investorside Research, Euro IRP and Asia IRP. He is also a registered investment advisor to the US Securities and Exchange Commission (SEC).

The signals emitted by Trading Central are used by traders to successfully implement their strategies and pick out the finer points of technical analysis. These signals have predictive methodologies, and these signals incorporate a variety of analytical approaches into their forecasting methods, making them extremely valuable tools for traders in all market conditions and timeframes.

Get access to AvaTrade’s Trading Central

Trading Central Signal – Method used

Trading Central is globally recognized as a leading provider of technical strategies, providing traders with deep market knowledge and expertise. However, reading and understanding the signal is not so easy and requires some expertise.

Trading Central uses a unique approach backed by years of research and proven indicators of efficacy. This approach has been validated and certified in key asset classes and is suitable for all types of investors, from day traders to long-term traders, regardless of the approach to the trade they apply.

The study combines the following two.

• Churchist analysis conducted to determine price direction and goals.
• Use of mathematical models to support that direction and determine timing validity.

AvaTrade have added rigorously selected and proven traditional indicators to AvaTrade’s sophisticated mathematical model to trigger trade alerts and inspiration. Japanese candlesticks and signals are also used to support market reversals and accelerations.

The Trading Central team is made up of highly skilled and experienced professionals who have conducted research using this unique methodology. This strategy is offered for all types of assets, including stocks, indexes, currencies, commodities and interest rates.

Open AvaTrade’s Account

Principle of technical analysis

The basic principles on which the analysis is based are:

The market takes everything into account

The first basic principle of technical analysis is that it needs to reflect the entire history of financial instruments. This means that all the information available about financial instruments needs to be displayed appropriately and accurately. Previous changes in the market may be used to predict future prices if they are in flux in the market.

Trends are essential

You need to keep up with trends to be successful in the longer term.

The price is a reflection of psychology

All prices are the result of a conflict between the buyer and the seller. Psychological effects play an important role in pricing. Different states of mind and opinions can make different decisions in the same situation. Analyzing the opinions of the majority will help you to act efficiently in the market. Technical analysis does not tell you why prices are soaring or falling, but it can help you measure price evolution and predict future trends.

Markets may not make sense

Investor hopes, ambitions and moods are not taken into account, but they can often create exaggerations in the market. Technical analysis is an essential tool for integrating the psychological aspects of this market.

Go to AvaTrade Official Website

How to use signals during trading?

Experienced Forex traders predict currency movements to get the most out of economic announcements and observe future economic events to take immediate action. They usually already calculate the impact on currency pairs and plan what transactions to make according to the calculation results. They also tend to focus on certain indicators that they believe are most influential and important to the currency pairs they trade.

Traders can use the economic calendar to keep track of future announcements. Predict the measures that economic experts are likely to announce Usually, the economic experts anticipate the measures that are likely to be announced. Forex traders use these forecasts to price currency pairs in response to currency movements before other traders seize the opportunity and maximize profits. In reality, economic events can quickly change the direction of a currency’s movements, and the quicker you react to a trading decision, the more likely you are to make a profit. Of course, the ultimate profit depends on the ability to accurately predict currency movements and volatility. It may not be the data that actually comes out, it is about whether the data is unexpected. For example, if you predict that NFP will have 130,000 new employees and are far from the numbers, you may see a correspondingly large movement in the US dollar.

Trade with the Trading Central

How can I use fundamental analysis to trade?

Fundamental analysis shows the economic, social and political forces that can affect the supply and demand and value of currencies. In general, improving fundamentals leads to a rise in the currency, and deterioration leads to a depreciation of the currency.
How do you measure the improvement/deterioration of fundamentals? One way is to observe the country’s economic report as an indicator to compare the situation from one period to the next, such as GDP, CPI, employment fluctuations, and retail sales. See the important economic indicators.

These reports are readily available online and are instantly updated with economic indicator calendars like those offered to easyMarkets. Some market participants are watching the release of these indicators as they can cause significant volatility in the foreign exchange market.

Therefore, news trading is one of the quickest ways to apply basic analysis to foreign currency trading. Please note that events on the economic calendar may be labeled with the usual impact, as high-ranking announcements tend to result in stronger exchange movements than lower-ranking announcements. .. These economic calendars also include consensus forecasts by analysts, so whether results exceed expectations will also be a factor in the currency’s reaction.

Long-term traders who prefer to stay on the trend and keep track of significant reversals use fundamental analysis to measure how economic data impacts central bank interest rate decisions and monetary policy measures. can also do. Interest rates vary from country to country, and central banks can reduce or raise interest rates to maintain price stability and promote economic growth.

For this reason, if economic indicators weaken, the central bank of the country may take the dovish view of lowering the currency value in the long run by lowering interest rates or increasing the money supply. .. On the other hand, as economic indicators strengthen, central banks may take a hawkish view by raising interest rates or reducing the money supply, implying the possibility of boosting currency values.

Apart from economic indicators, political events and headlines also influence the value of currencies. For example, an upcoming election creates a lot of uncertainty and results in squeezing the value of the currency as it discourages traders from buying the national currency. In another example, the lack of a dangling parliament or a majority government could delay legislation, which is essential for boosting economic activity, and lead to currency depreciation.

Finally, social situations such as war and turmoil can affect a country’s fundamentals. In some cases, these disputes can lead to sluggish economic and personal consumption by closing stores, expanding protests, and stagnation of economic activity, resulting in slower economic growth and less appetite for currencies. there is.

As a result, headings can also affect the exchange rate of currencies, especially as traders typically combine stronger and weaker currencies to take advantage of larger price fluctuations.

Get access to AvaTrade’s Trading Central

Macroeconomic factors that drive the market

The world markets are even more intertwined. The economic conditions of a country can have a dramatic impact on global markets.
Data releases, geopolitical events, and even bad weather in the corners of the globe can have a major impact on financial markets. Below are some of the key factors that affect the economy in general, and specifically the financial markets.

Geopolitical factors

Geopolitical factors are political or geographical events that can drive a market. Civil riots, upcoming elections, and wars are just a few examples of how national politics affect markets. Geographical events include extreme weather events and earthquakes that can affect the ​productivity and distribution of a country’s products and services. The damage caused by these also requires unexpected spending to rebuild the infrastructure. Trade can also be affected by geopolitical events. Political instability countries will not be considered good trading partners. Changes in the political system can stall currency values ​​until things have settled down and fiscal policy has been announced. Catastrophes such as wars and tsunamis can affect economic growth and again lead to currency depreciation. The more developed a country is, the faster it may recover from unexpected events. The more mature the market, the more flexible it is to respond to such events. In emerging markets, these events are catastrophic and may be detrimental for the foreseeable future.

Supply & Demand

The value of goods and services depends on supply and demand. Supply means how many goods and services are available in the market, and demand means how many buyers want and buy those goods and services. This also applies to currencies and other CFD markets. The law of supply and demand is that the higher the demand, the higher the price. The higher the supply, the lower the price. In pair transactions such as foreign exchange, the price of one currency is higher than that of the other. This means that the currency is in higher demand than the counter currency.

Balance of payments

Traders look at trade reports as they are a good indicator of the stability of a country’s economy and especially its currency. Countries participating in international trade exchange money to exchange goods and services. The level of international trade is an important indicator of a country’s currency value and magnitude of demand. Each country imports products from other countries and exports its own products. If there are more imports than exports, the trade balance will be in the red because you will spend more to buy the currency of the importing country than you can receive by exporting. This especially affects the value of your currency relative to the currency of the trading country. However, if you have a trade surplus, the demand for that currency will increase.

Industrial products

The Industrial Production Report is an important report because it provides data on the products produced from factories and mines in the country. These figures also show how much factories and mines are being utilized. Positive examples include increased production and availability. These are good indicators to keep in mind as large changes can lead to market volatility in a country.

GDP

A country’s currency is often dictated by the overall health of the country’s economy. Gross domestic product (GDP) is an important indicator of economic health as it shows the market value of products and services produced during the country’s year. It measures national government, consumer, international trade and investment spending and is announced quarterly or yearly. A high GDP number means a boom, and a fall in GDP means a recession.

Interest rate

World currencies are tied to national interest rates. As a general rule, as rates go up, so does the value of the currency. The country’s leading central bank monetary policy is a major factor influencing interest rates and will be used as a means of controlling the country’s currency value and inflation in general. High interest rates encourage people to invest their cash in the country. Therefore, it is necessary to convert it to a local currency, which leads to a rise in the value of the local currency. However, if inflation rises too high as a result, the value of the currency can fall.

Financial policy

As you know, the central bank arranges a national financial plan for the country’s economic growth. Central banks focus on the money supply, inflation and interest. This policy affects taxation, government spending and the overall budget. The monetary policy implemented by these banks has a large impact on the market, making it an important announcement for traders to watch.

Retail sales

Retail sales are reports of consumption in a particular country. Retail sales represent spending in a particular country. Traders keep an eye on these economic indicators quarterly and yearly. Investors not only look at the actual numbers, but also observe how they have changed positively and negatively compared to the previous report. Retail sales are a precursor to the GDP report and may indicate what is shown in the report. Good sales mean that consumer sentiment and consumers are positive about spending. A rise in retail sales suggests that the amount of local currency will increase.

Employment data

Employment data is published on a regular basis and shows the rate of change in employers. A high employment rate vs. unemployment rate indicates that the country is booming, with the people earning enough income and having the power to consume. However, if the unemployment rate is high, central banks may consider lowering interest rates to encourage the inflow of funds into the economy.

Economic indicators

Traders follow the economic calendar to ensure that relevant economic indicator releases and changes in previous reports that can cause market volatility are not overlooked within a set period of time. Apart from the indicators listed so far, the most followed indicators are unemployment rate, consumer price index (CPI), producer price index (PPI), purchaser index (PMI), home sales, and housing construction start. The number is included.

Open AvaTrade’s Account