Technical Analysis Black Wednesday

In: Historical Events

Submitted By timwaaijer
Words 1501
Pages 7
17-05-2013 Internationale Monetaire Betrekkingen C. Troost

Groep 109A 2012/2013 Semester 2 Blok 2

Een technische analyse van Black Wednesday aan de hand van de Simplest Test
Sjeel Meijerink Tim Waaijer 10248552 6036759

INLEIDING
Op 16 september 1992 verliet Groot-Brittannië het Europese Exchange Rate Mechanism (ERM). Naar deze dag wordt sindsdien gerefereerd als “Black Wednesday”, de dag dat George Soros £1 miljard verdiende door te speculeren op een daling van de Britse pond (Leftly, 2012). Tot 1990 stemde de Bank of England (BoE) haar beleid af op dat van de Duitse Centrale Bank (Kenen, 1995, p. 6). Groot Brittannië maakte tot die tijd geen deel uit van het ERM. Door een hoge inflatie besloot Groot Brittannië in 1990 toch mee te doen met het ERM en kreeg een vaste wisselkoers ten opzichte van de Duitse Mark. De EEG stond echter een bandbreedte toe waarin een wisselkoers mag bewegen (Higgins, 1993, p. 29). Voor Groot Brittannië was dit tussen 6% boven de vastgestelde koers van 2,95 DM/£ en 6% er beneden, de wijde bandbreedte (Higgins, 1993, p.30). Anderen landen in het ERM moesten een strengere band van 2,25% aanhouden. Groot Brittannië, Italië en Frankrijk werden beschouwd als zwakkere economische landen met een hoge inflatie en daarom werd toegestaan dat zij een bandbreedte van 6% kregen in plaats van 2,25% (Higgins, 1993, p. 30). De afspraak is dat de overheid en de centrale bank de binnenlandse munt zullen kopen en verkopen om de wisselkoers binnen die band te houden (Pilbeam, 2006, p. 148). Voor de markt betekent dit dat wanneer een wisselkoers in de buurt komt van de uiteinden van de band, er waarschijnlijk een devaluatie of revaluatie gaat aankomen. Zo blijft de koers binnen de afgesproken bandbreedte (Grafiek 1). Svensson (1990, p. 3) heeft op basis van de afgesproken bandbreedte gemeten wat de markt verwachtte ten aanzien van de Zweedse target…...

Similar Documents

The Black Cat Analysis

...Edgar Allen Poe’s The Black Cat, much like many of his other stories, is a tale of inexplicable violence and perverseness, and yet it is an amazing insight into the mind’s ability to observe itself and even give itself away, as evidenced in end of the tale of the narrator. Indeed, even the narrator himself is aware of this fact that he is going insane somehow, and even with this knowledge and the knowledge that he continues to proceed in his insanity it’s not enough to stop his descent. The narrator takes time and details each aspect of his madness, in a sense observing his actions from a detached perspective, even though the story is written in the first person, like a psychiatrist. There is however a tinge of awareness and perhaps some sense of guilt in how the narrator conveys the story. Much of his actions make no sense and seem to have no logical intent, and perhaps that is what Poe tries to convey when the narrator describes and his actions in the word, “PERVERSENESS.” One interesting note is that the narrator defends himself in the very beginning with “Yet, mad am I not—” and yet he begins to logically process his reactions with, “have terrified — have tortured — have destroyed me.” Thus, in the very act of saying he isn’t mad, and then by logically outlining his guilt, he shows his own descent into madness and his objectivity throughout the process, questioning whether the narrator feels guilty at all or not. After The Black Cat begins with the narrator’s......

Words: 1068 - Pages: 5

Technical Analysis and Risk Management

...Objective: The objective of this paper is to test whether the technical analysis indicator MACD is effective in real trading. We will use the S&P 500 Index as our samples, and our main idea is to find the average return and VaR when we buy at the time MACD shows a “golden cross” and sell at the time when there is a “death cross”. MACD: Before we do the test, let’s start to define the MACD as well as its components. MACD is one of the most popular indicators used in the technical analysis. And it is mainly comprised of MACD line, signal line, and the histogram. MACD line and the signal line are calculated by using the EMA (exponential moving average) function, while the histogram is the difference between the MACD line and signal line. MACD line is the difference between exponential moving averages of 12 day stock price and the exponential moving averages of 26 days stock price. The signal line is the exponential moving averages of 9 day MACD. (12, 26, 9) is the well-recognized moving average lengths used in the industry, but can be altered with other appropriate numbers.  MACD Line = EMA [stockprice, 12] – EMA [stockprice, 26]  Signal Line = EMA [MACD, 9]  Histogram = MACD Line – Signal Line In technical analysis, there is a basic rule to apply the MACD into practice, say when the MACD line up crosses the signal line, the stock price is expected to rise in the short term, while the MACD later on down crosses the signal line, the stock price may be expected to go......

Words: 943 - Pages: 4

The Benefit of Using Technical and Fundamental Analysis in Stock Trading

...ABSTRACT The research question of this study is whether the weighted moving average as a technical method and simple trading plan as a fundamental approach can help Indonesian trader and/or investor in gaining consistent profit. The finding of this study will be useful to all the traders because it will show whether the usage of both fundamental and technical analysis will give better result than just using one of them as an analysis method. Upon answering the research question, researchers went through a deductive cross-sectional study by surveying companies in the Indonesia stock exchange to explain the effect of using both technical and fundamental analysis to analyze the price fluctuation of stocks. The data collection method is quantitative data collection by taking the sample of 5 companies from 5 different sector industries and then analyze the data gathered using the proposed analyzing technique: technical and fundamental analysis method. Keywords : Technical analysis, Fundamental analysis, Stock price I. Introduction Like any other countries around the world, Indonesia has a financial market that consists of several investment choices available for public, such as: Stocks, Bonds, Foreign Exchange, Futures, etc. Those investment choices have different level of liquidity, risk and return profile. Stocks are one of the basic types of investment based on the corporate venture. Moreover stocks are popular for Indonesian investors and traders because it......

Words: 3748 - Pages: 15

Technical Analysis

... SYMBIOSIS SCHOOL OF BANKING MANAGEMENT Constituent of symbiosis International University Accredited by NAAC with ‘A’ Grade Established under Section 3 of the UGC Act, 1956, vide notification No: F.9.12/2001-U-3of the Government of India. IMPORTANCE OF TECHNICAL ANALYSIS IN DETERMINING MOVEMENT OF PRICE IN EQUITY STOCK MARKET Internship Report submitted to SIU in partial completion of the requirement of MBA Banking Management at Symbiosis School of Banking Management Pune-412115. NAME OF THE STUDENT: PROJECT MENTOR (SSBM) PROJECT MENTOR / PRN: REPORTING OFFICER (AT THE BANK) ABHISHEK AGRAWAL DR. BINDYA KOHLI AMOL ATHAWALE PRN: 12020941031 APRIL 08 2013 TO MAY 25 2013 ACKNOWLEDGEMENT I sincerely and religiously devote this Research Paper to all the gem of persons who have openly or silently left an ineradicable mark on this research so that they may be brought into consideration and given their share of credit, which they genuinely and outstandingly deserve. This expedition of......

Words: 17695 - Pages: 71

A Technical View of System Analysis and Design

...A Technical View of System Analysis and Design Abstract System Analysis and Design is a process. Analysis is the part that involves the study of the units working together. Design is an essential phase in the development process based on the user needs. System Analysis and Design is an approach towards reinforcing the analysis and design of information systems with the objective of improving the system performance by automation. This paper explores the Managers outlook and importance of System Analysis and Design as well as the exploration into organizations that utilize System Development and Design. We uphold that continual and extensive use of current System Analysis and Design Methodologies will assist in the development of an effective system. Key Words: System Analysis, System Design, Methodologies Introduction Computers are now becoming part of virtually every activity in an organization. This paper explores the relationship between the organizations and managers of IS projects and the usefulness and need for IS project managers to become more knowledgeable to be able to effectively anticipate and deal with conflicts that arise as a consequence of information systems creation or modifications in organizations. The development of a system basically involves two major parts: System Analysis and System Design. System Analysis is defined as the study of a business problem domain or area to recommend improvements and specify the business......

Words: 4173 - Pages: 17

A Summary and Technical Analysis of the Under Armour, Inc.

...Abstract Under Amour, Inc. is a performance based apparel company that is quickly growing to become one of the top companies in the industry. They are known for high-quality, innovative products that are giving athletes a competitive advantage. This paper describes the history of the company, analyzes the company’s performance and required rate of return, discusses the projected future growth rate of earning, values the company, and provides a recommendation to buy stock at the estimated price target of Keywords: stock analysis, return on equity, projected future growth rate, required rate of return, intrinsic value   A Summary and Technical Analysis of the Under Armour, Inc. (UA) Stock on the New York Stock Exchange Under Armour, Inc. (UA) was established in 1996 by Kevin Plank, a former captain for the University of Maryland football team. His concept for a better T-shirt was born on the field; on one of the many days when he and his teammates were drenched in sweat. As a result of this, including extensive research into synthetic fibers, he produced the first prototype for a new generation of performance apparel: HeatGear. His new HeatGear T-shirts helped to keep athletes dry and cool, enhancing former teammates running two-a-days under the hot Maryland sun. Within a few years, the company developed ColdGear and AllSeasonGear lines, and had products featured in the major motion pictures “Any Given Sunday” and “The Replacements”, as well as in ESPN Magazine. ...

Words: 1261 - Pages: 6

Black and Decker Case Analysis

...Black and DECKER: power tools Case study Problem Statement Black and Decker has established its brand strength to be among the top ten firms in the United States. By creating the portable power tools business in the early 1990’s and being the world’s largest producer by the end of the decade, the firm has been vouched for offering high quality, differentiated products and excellent service in the Professional-Industrial segment. Powerful brand perception has helped Black and Decker attain the number one position in the Consumer segment. Although Black and Decker has been leading in two of the three segments of the $1.5 billion portable power tools market, it could not make a significant impact in the Professional-Tradesmen segment that was fast growing at 9%. Black and Decker has managed to occupy only 9% with no profitability of the total segment share against Makita and Milwaukee who stand at 50% and 10% respectively. Despite Black and Decker’s success in the Consumer and Professional-Industrial segment, according to surveys conducted of tradesmen, results showed poor quality perception and lack of proud ownership of the tools for the use of job specific applications and instead are perceived to be ideal for home tasks. The low favorability of Black and Decker’s power tools in the Professional-Industrial segment as compared to Makita’s and others may be attributed to (among other factors) the incompetence in product differentiation through the use of color schemes......

Words: 2367 - Pages: 10

Black Boy Analysis

...Struggle for Individuality The autobiography, Black Boy, follows the life of Richard Wright and his experiences as a young African American teenager facing racism in the South. Throughout the novel, Wright focuses on the oppression society inflicts upon him. He finds difficulty in remaining employed because he does not act “black” or submissive enough. He is physically and emotionally attacked for being African American as the majority of the South contains an extremely racist culture. Wright does not even have his family to rely on for support because they criticize and beat him as well. Differences within his family along with incidences of violent attacks and disrespectful language plague Wright and try to deplete his confidence and identity. However, Wright simultaneously finds measures within these aspects to gain back his individuality and happiness. He fights back through violence to uphold his right of walking safely in Memphis; he uses all of his ability to avoid beatings from his family, and he finds joy and sense of worth when he writes stories. Ultimately, Wright struggles to keep his sense of identity in a society that degrades his persona, but manages to obtain his individuality in the end. Through violence, Wright begins to understand that society is laying out a persona for him to accept that is not initially his. In the South, he learns he must accept the role as the meek and respectful “nigger.” Wright experiences violence one day that teaches him how......

Words: 1735 - Pages: 7

Technical Analysis Indicators

...a new local low, but the security does not * Overbought/Oversold indicators * Commodity Channel Index * Relates the Typical Price of a security to the mean Typical Price over a period of time * Values beyond +/- 100 flag overbought/oversold condition * Go long at the +100 level, then cover during the retracement back down to +100 * Go Short at the -100 level, then cover during the retracement back up to -100 * Detrended Price Oscillator * An oscillator that attempts to eliminate the trend in prices, highlighting the overbought/oversold cycles in the price action * Relative Strength index * An oscillator that attempts to measure the internal strength by analysis of recent price changes * Overbought/oversold indicator * Williams’ %R * A price oscillator that relates the current close to the range of prices over a specified period * Gives overbought and over sold conditions * Volatility Indicators * Average True Range * Volatility measure that is calculated as an average of modified daily ranges * Increases when the range of price swings are increasing * Decreases when price variability slow * Often, volatility increases at market tops and decreases as a price correction end * Bollinger Bands * Defines the upper and lower boundaries of a security’s normal trading range * Measures......

Words: 1769 - Pages: 8

Technical Analysis of Stocks

...ANNEXURE - C “TECHNICAL ANALYSIS OF STOCKS ” This project report in the Special Studies in Finance based on the in-depth study of the project theme is submitted in February, 2014 to the Sydenham Institute of Management Studies and Research and Entrepreneurship Education (SIMSREE) , B - Road, Churchgate, Mumbai - 400 020, in partial fulfillment of the requirements for the award of the Master’s Degree, Masters in Management Studies (MMS), Submitted By NAME: VAISHALI CHANDRESH GORATELA ROLL NO. : M12020 CLASS: MMS1 BATCH: 2012-2014 Guided By MR. AMIT BOBHATE Date: Place: MUMBAI ANNEXURE – D CERTIFICATE This is to certify that this project report entitled “TECHNICAL ANALYSIS OF STOCKS” is submitted in February, 2014 to Sydenham Institute of Management Studies and Research and Entrepreneurship Education (SIMSREE) , Mumbai 400020, by Ms. Vaishali Goratela bearing Roll No. M12020, batch (2012 - 2014) in partial fulfillment of the requirements for the award of the Master’s Degree, Masters in Management Studies (MMS). This is a record of her own work carried out under my guidance. She has discussed with me adequately before compiling the above work and I am satisfied with the quality, originality and depth of the work for the above qualification. PLACE: MUMBAI. ________________ DATE: ......

Words: 13489 - Pages: 54

Stock Market Analysis in Practice: Is It Technical or Fundamental?

...Journal of Applied Finance & Banking, vol.1, no.3, 2011, 125-138 ISSN: 1792-6580 (print version), 1792-6599 (online) International Scientific Press, 2011 Stock Market Analysis in Practice: Is It Technical or Fundamental? Gil Cohen1, Andrey Kudryavtsev2 and Shlomit Hon-Snir3 Abstract Investors use varies tools in the investment process. Some use technical or fundamental analysis, or both in that process. The aim of the following survey research is first, to examine differences between professional portfolio managers to amateur investors in their approach towards technical and fundamental analysis. Second, we want to study the difference of use of fundamental and technical tools in the buying versus selling stocks. We used online survey in one of the leading business portals in addition to asking professional investors in a leading investment house in Israel. Our results show no significant difference between professional and non-professional investors in terms of how frequently they use fundamental and technical investment tools. Both groups of investors use more frequently fundamental tools than technical when they make buy/sell decisions. We also found that non-professional investors use more fundamental tools such as "analysts' recommendations" when they buy stocks and more technical tools such as "support and resistance lines" when they sell stocks. Moreover, our study                                                               Economics and Management......

Words: 1882 - Pages: 8

Black & Decker Case Analysis

...Joseph Galli, the vice president of sales and marketing for power tools in Black & Decker Corporation, is presented with options for the next steps to solve the company’s problem of having low sales in the Professional-Tradesman segment where profitability is practically zero. B&D only holds about 9% of the market share which is shockingly low considering its high quality and its success in its other two segments. Galli is now considering three options: I. Focus on its successful segments (Consumer and Professional-Industrial segments) while trying to harvest any profitability in the Professional- Tradesman segment II. Sub branding to rebuild the B&D name III. Drop the B&D name from the Professional-Tradesman segment, ultimately creating a new brand Before we look at which option(s) is most appropriate, we need to conduct a thorough analysis. Also, it is important to note that this is a decision case, since the company is facing a well-defined problem (which I will go into detail later) with multiple alternatives. The purpose of this paper is to evaluate which alternative(s) are most suitable for B&D SWOT ANALYSIS Strengths The company has an amazing brand strength as it is ranked #7 in the US and #19 in Europe. Among its competition, B&D has the highest awareness at 98%. Furthermore, the company sells quality products at competitive prices (it is 5%-10% lower than its competitors). B&D conducted 2 tests to determine the......

Words: 1543 - Pages: 7

Technical Analysis of Banks

...Technical Paper on Differentiated Bank Licences | | |I. Introduction | | | |II. Statutory background- Banking Regulation Act, 1949 | | | |III. Policy of issuing licence to banks in India | | | |IV. Differentiated Bank Licensing- Examining Pros and Cons | | ...

Words: 3127 - Pages: 13

Fundamental and Technical Analysis of Prime Bank Limited

...Fundamental & Technical Analysis of Prime Bank Ltd. Technical analysis looks at the price movement of a security and uses this data to predict its future price movements. Fundamental analysis on the other hand looks at economic factors which are known as fundamentals. Fundamental & Technical Analysis of Prime Bank Ltd. Group:16 Department of Finance. Jagannath University, Dhaka Page Fundamental & Technical Analysis of Prime Bank Ltd. Submitted To, Kawser Ahmed Shiblu Lecturer Department of Finance Jagannath University, Dhaka Submitted By Uttam Golder On the behalf of Group: 16 Department of finance Jagannath University, Dhaka Department of Finance. Jagannath University, Dhaka Page i Fundamental & Technical Analysis of Prime Bank Ltd. List of Group Member Serial 1. 2. 3. 4. 5. Name Uttam Golder Rajib Chandra Banik Md. Monir Hossain Joy Roy Choudhury Md. Al-Masur Rahaman Khan ID M 130203004 M 130203025 M 130203069 M 130203033 M 130203077 Department of Finance. Jagannath University, Dhaka Page ii Fundamental & Technical Analysis of Prime Bank Ltd. Letter of Transmittal February 15, 2015 Kawser Ahmed Shiblu Lecturer Department of Finance, Jagannath University, Dhaka Subject: - Submission of report on “Fundamental & Technical Analysis of Prime Bank Ltd.” Dear Sir, With due respect, we would like to state that it is a matter of great pleasure and honor for us to submit our report on...

Words: 54237 - Pages: 217

Wednesday

...What I Feel About Wednesday. As we know, Wednesday is the third day in a week, which is the middle of the week. But Wednesday may means different for different people. There is a Hindustan movie named A Wednesday in year 2008. There is also a fabulous weekly link party where bloggers share their latest projects and recipes called Work It Wednesday. Besides that, a full-service, integrated creative agency which create strategically-led advertising campaigns, online destinations, editorial content and innovative digital experiences for consumers known as Wednesday also exists in the United States. Despite all that, I have my own feeling and definition about my Wednesday. Wednesday for me is a busy day. Since my school days, Wednesday have always been the tight schedule day for me. My day at school became longer because the co-curriculum day was held every Wednesday evening. I also had to wear the society’s uniform which was kind of uncomfortable to wear it from morning to evening. There were lots of things that I had to do on that day too. I had to attend the class in the morning which usually there were a lots of subject in a short period in the schedule. So, my brain had to catch up a lot of lessons since there were many subjects that being taught on that day. I also had to think of activity that going to be done in the society meeting in the evening since I was the vice president of the society. Same goes in my university days now, Wednesday is such a tough......

Words: 530 - Pages: 3

Download | Frankie Drake Mysteries - Season 2 | The.Simpsons.S30E09.1080p.WEB.x264-TBS added by Bruteforce 59.282k*