To know about Market Dynamics

[thisisnits]

Hi...I do intraday trading in options using Technical Analysis tools by checking the graph. I would like to know about predictions given by the analysts. They gives a certain level for trading for the same day and also predict for the week based on dynamics and other factors. I would like to know about how the analysts come to a particular support or resistance level and the formulas involved in this. Please assist.

 

[jeffsmith]

The idea behind forex predictions is to use available information to forecast a forex rate in the future. There are two main approaches to how predictions are made: technical and fundamental approach.
The methodologies that are used to make these predictions form also the basis for most of the trading strategies and systems out there and have similar strengths and weaknesses.

No prediction system will work perfectly and historical accuracy is no guarantee that a system will work in the future.

 

[thisisnits]

Thank you for the quick response.Would like to clarify on one thing. Giving an eg. In Nifty, if we want to predict thru technical, retracement is used .Fundamentals and global scenarios also determine the mkt but I would like to know if any kind of formulas are involved and what does it take into consideration. Many analyst sd that Nifty will go till 2000. Nw its trading around 3000 but still many analysts beleive that there is a possible downtrend pending based on fundamentals which will take Nifty till 2000. Also on a daily basis, support and resistance levels are given by the analysts.Would like to knw how it is determined.Please assist regarding this.