Technical analysis is a short-term trader’s best friend. One of its key benefits is its flexibility across a variety of markets. Trends, indicators and trading signals are similar.

Invest in precious metals today! Contact us for details.

Invest in precious metals today! Contact us for details.

The same technical principles apply over and over again, regardless of the market. The easiest way to see these similarities is to compare a few basic charts. Here is a chart for Silver prepared by StockCharts.com

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The chart above is for the last six months. The performance history of Silver has correlated with and mirrored similar performance in the stock market. The close ties of value with industrial needs accounts for this similarity, yet the recent run up represents a departure from this trend. This type of trend does not necessarily apply to currencies. In the chart below supplied by forexrealm.com, the Dollar has strengthened by 13% versus the Euro for the past five months. However, the forecast for 2010 presumed a weakening from May forward, not the reverse. Therein lies the reason for the market turmoil. You will also notice that volume figures are not present. Currencies trade in the trillions per day in the absence of an organized central exchange .

  Click on image to enlarge. 

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