How to determine the trend of the market in the short-term and medium-term from daily chart?

Daily Charts are where every each candle or Japanese candle sticks formed on per day basis. There are different time frames such as 4 hours or 1 hour where each candle formed is every 4 hour or 1 hour respectively. 

When a particular security has created 'lower lows' and 'lower highs' it shows a downtrend bearish movement as showed on the chart. On the other hand, when the particular security has created 'higher highs' and 'higher lows' it shows a upward bullish movement.

Other ways to determine the trend in the market is by the way of Moving Averages. Most common method of Moving Averages are Simple moving Average and Exponential Moving Average. Simple Moving Average is simple the average price of the security over a specific number of period. Exponential Moving Average is similar to Simple Moving Average but more weight is given to the latest data. 

Moving Averages can help you to know the trend by applying different kind of parameters that suits investors. A lower period Moving Average will tend to react prices quickly and vice cersa with the longer periods.

Any technique understanding the trend direction can be used with different time frames and can be compared easily. A longer time frame such as Weekly or Monthly Charts are usually to know the trend direction over a long term view and if the shorter time frame such as Hourly, 4 Hourly or Daily can be used for short to medium view of the market.

Technically speaking : Higher highs and lower lows create an up trend while lower lows and lower highs create a down trend.

Foreign exchange exposure is classified into three types viz. Transaction, Translation and Economic Exposure. Transaction exposure deals with actual foreign currency transaction. Translation exposure deals with the accounting representation and economic exposure deals with little macro level exposure which may be true for the whole industry rather than just the firm under concern.

Foreign exchange exposure is said to exist for a business or a firm when the value of its future cash flows is dependent on the value of foreign currency / currencies. If a British firm sells products to a US Firm, cash inflow of British firm is exposed to foreign exchange and in a case of the US based firm cash outflow is exposed to foreign exchange. Why we are so skeptical about this exposure? Simple! It is because the exchange rates tend to change or fluctuate.

Head Of Technical Analysis