The year 2017 was one of the must lucrative for the stock market. Traders and investors were able to experience wins in retail stores, currency exchanges and the growth of businesses. The stock market also offered new and alternative introductions to traders and investors, such as the rise of cryptocurrencies, ICOs and the rapid growth of Bitcoin. With the continuous upward trends and bullish market, what do technical indicators show for the year of 2018? After the season is gone, will traders and investors continue to see opportunities grow?
There are various speculations which can be made for the year 2018. Usually, technical indicators will state that with the growth of stock markets are also patterns to look at. For instance, the use of fractals offers a golden ratio that predicts what the turns will be. The natural patterns of how the stock market will make its next move. If there is a bullish trend, it not only looks at the last set of patterns. Instead, there is expansion to past trends and what has occurred over time with upward trends. Pullbacks and reversals as patterns are essential to consider with a lucrative market, specifically to know where the volatility is with the trends.
The technical indicators which are used also need to be looked at based on other quantitative factors. There are many that predict a reversal in the stock market, specifically based on past patterns in relation to inflation and high valuation of stocks. When this occurs, it creates a drawdown in certain portfolios as well as a withdrawal in the market. If there are certain assets with a low yield and high valuation, then it is essential to look at the volatility of the stocks. This may heighten the risk and create an outcome which traders and investors are not interested in.
What does this mean for those who are speculating the market through December? Looking at slowdowns in growth as well as potential pullbacks in the market is essential. The current technical indicators show a short – term growth that continues to accelerate, moving to questions over changes. If there is a selloff in shares, such as in the tech market, then there can be a fast decline. For traders and investors through the month of December, it is essential to look at potential pullbacks as well as high inflation rates that may create a reversal in the current bull market.
The dynamics in the current stock market show continuous upward trends and possibilities in the stock market. Technical indicators define the congruency of these patterns as well as their effectiveness. For December, it is essential that traders and investors look at the stocks with high valuation as well as changes in inflation rates. Combining this with technical indicators that are able to define the probability of changes will assist traders and investors with determining their next move in the market.
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