What are the most directional markets?
Forex is in general a sideways market, instead stocks generally are trending markets. But specifically what are the most directional
markets (resolute and durable in the direction they take)? (ie. DJ30, CAC40, DAX??)
Is this a joke?
Forex market have some of the strongest trends ever seen but of course the persistence and the amplitude of such trends depend on how much the
fundamentals behind get stronger in dependence of economic
news and/or other intricate questions such that when they are combined in a sort of multi-dimensional puzzle (intermarket
components too) and at the right timing too, will fire the start of such strong and persistent trends. Stock market have a sort of "bullish
bias" in comparison of forex market but "bias" is a different concept in comparison of "trend" concept. That bias is often exploited from
"buy and hold" strategies especially engaged from long term investors for portfolio diversification purposes.
- www.mql5.com
Is this a joke?
Forex market have some of the strongest trends ever seen but of course the persistence and the amplitude of such trends depend on how much the
fundamentals behind get stronger in dependence of economic
news and/or other intricate questions such that when they are combined in a sort of multi-dimensional puzzle
(intermarket components too) and at the right timing too, will fire the start of such strong and persistent trends. Stock market have a
sort of "bullish bias" in comparison of forex market but "bias" is a different concept in comparison of "trend" concept. That bias is
often exploited from "buy and hold" strategies especially engaged from long term investors for portfolio diversification purposes.
What I meant is that in the long term stock market tends to be directional, instead forex market tends to stay around an horizontal level.
What I meant is that in the long term stock market tends to be directional, instead forex market tends to stay around an horizontal level.
I explained it above. This directionality (as you call it) is known as a "bias" and
specifically a "bullish bias" in the case of stock market (due the fact that the economy generally tends to grow over the time).
For example Warren Buffett is almost sure to invest over a long period in the S&P500 as a "buy and hold" strategy since in the S&P500
are present most of the companies which make the USA economy to grow over the long period. This is nothing to do with "trending
market" as you describe the stock market in comparison of forex market which you describe as a generally sideway market since it is simply not
true. Forex is a strong trending market but forex doesn't have any particular known "bias" over the time since there is nothing which "grows"
over the time in absolute
value terms.
- www.mql5.com
I explained it above. This directionality (as you call it) is known as a "bias" and
specifically a "bullish bias" in the case of stock market (due the fact that the economy generally tends to grow over the
time). This is nothing to do with "trending market" as you describe the stock market in comparison of
forex market which you describe as a generally sideway market since it is simply not true. Forex is a strong trending market but forex
doesn't have any particular known "bias" over the time since there is nothing
which "grows" over the time in absolute
value terms.
In reference to the highlighted sentence: that in standard logic means "SIDEWAYS". Please don't lose you in your "bias" concept...
In reference to the highlighted sentence: that in standard logic means "SIDEWAYS". Please don't lose you in your "bias" concept...
I'm just using the common language used in the financial world. If you want to call it in other manner, you can do it as well but you will get distorted answers when you ask a question on the forum in mql5.
I'm just using the common language used in the financial world. If you want to call it in other manner, you can do it as well but you will get distorted answers when you ask a question on the forum in mql5.
My question was very clear:
Forex is in general a sideways market, instead stocks generally are trending markets. But specifically what
are the most directional markets (resolute and durable in the direction they take)? (ie. DJ30, CAC40, DAX??)
My question was very clear:
A question can be clear only when it is related with the purpose of the questioner, otherwise it would be a bit like stopping in an unknown country and asking a foreigner: am I going the right way? without specifying where you need to go.
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Forex is in general a sideways market, instead stocks generally are trending markets. But specifically what are the most directional markets (resolute and durable in the direction they take)? (ie. DJ30, CAC40, DAX??)