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СОДЕРЖАНИЕ

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Ю.М. Зудин
АНГЛИЙСКИЙ ДЛЯ ДИЛЕРОВ
СИСТЕМЫ РЕЙТЕР
English for Reuters Dealers
Учебник английского языка

Москва ИНФРА-М
1997










ББК 74.261.7 Англ. 392
Зудин Ю.М.
3 92 Английский для дилеров системы Рейтер. English for Reuters Dealers:
Учебник английского языка. - М.: ИНФРА-М, 1997. - 98 с.
ISBN 5-86225-393-9
Учебник "Английский для дилеров системы Рейтер" написан на информационном материале, распространяемом агентством Рейтер для проведения технического анализа при вапютно-обменных операциях. Пособие рассчитано на банковских работников, владеющих английским языком в объеме программы средней школы.
Цель пособия - выработать навыки понимания и перевода письменных материалов по специальности с последующим развитием разговорных навыков для делового общения.
ISBN 5-86225-393-9 ББК 74.261.7 Англ.
(c)Ю.М. Зудин, 1997
(c) ИНФРА-М, оригинал-макет, оформление, 1997
Acknowledgements
We are grateful to Reuters and Prince P.A. Obolensky in person for permission to reproduce Reuters copyright material: 1) Patricia Elbaz. Technical Analysis Seminar MMS International, Nov. Dec. 1994, 2) Cristobel Morison. Technical Analysis Introduction, 3) Reuters Glossary, (definitions of forex terms). 4) East-West Exchange articles on forex (12/94, 02/95, 06/95,08/95,12/95,01/96, 03/96,05/96) and 5) information derived from Reuters financial services.






















Понять информацию - это значит принять правильное решение
Никто лучше валютных дилеров не знает, что самым ценным продуктом в наше компьютерное время является информация, информация точная и своевременная.
Именно такую информацию поставляет агентство Рейтер для 20 000 своих дилеров, находящихся в 80 различных странах. Полторы тысячи репортеров собирают данные о финансовых операциях на всех биржах планеты и передают свои сообщения на экраны четверти миллиона компьютеров.
Собрать и передать информацию - это только одна проблема. Понять информацию, чтобы использовать ее - это другая проблема, не менее сложная. Решению этой задачи и служит предлагаемый учебник.
Агенство Рейтер распространяет информацию в виде таблиц, графиков и текстов. Текстовые материалы представляют значительные трудности для понимания тем, кто не говорит по-английски. Устранить этот языковый барьер и предлагает автор данного учебного пособия.
Удачно подобранные тексты, раскрывающие суть и правила использования технического анализа для валютно-обменных операций, позволяют автору решать сразу две задачи: обучать английскому языку, пониманию и переводу сложных текстов по специальности и одновременно систематизировать профессиональные знания дилеров. Следует признать продуктивной попытку автора проанализировать семантические связи словосочетаний-терминов и их тематическую классификацию.
Уверен, что русский валютный дилер сможет по достоинству оценить учебное пособие, которое даст ему знание английского для делового общения с коллегами-иностранцами.
Князь П.А. ОБОЛЕНСКИЙ
Представитель агентства Рейтер в СНГ по рекламе и связям с общественностью





































CONTENTS СОДЕРЖАНИЕ
FOREX DEALING ВАЛЮТНЬШ ДИЛИНГ
Unit 1. Foreign exchange rates Курсы валютно-обменных операций............... 6
TECHNICAL ANALYSIS ТЕХНИЧЕСКИЙ АНАЛИЗ
Unit 2. Assumptions of Technical Analysis Принципы технического анализа..................... 8
Unit3. Market Stages Циклы движения рынка .................................. 12
Unit 4. Technical Analysis Charts Графики теханализа........................................ 22
Unit 5. Technical Analysis Patterns Фигуры теханализа.......................................... 26
Unit 6. Technical Analysis Patterns
(Continued) Фигуры теханализа (продолжение)................ 33
Unit 7. Oscillators Осцилляторы................................................... 39
Unit 8. Oscillators (continued) Осцилляторы (продолжение) .......................... 41
Unit 9. The Elliot Wave Волновая теория Эллиота ............................... 52
FOREX FORECASTING ПРОГНОЗ ДВИЖЕНИЯ КУРСА ВАЛЮТ
Unit 10. Key Interest Rates Процентные ставки центральных
банков.............................................................. 57
Unit 11. Long Term Technical Analysis Долгосрочный технический анализ:
(usd/dem, usd/ipy) (usd/dem, usd/ipy) ............................................. 60
Unit 12. Medium and Short Term Средне и краткосрочный
Technical Analysis технический анализ ......................................... 67
GLOSSARY ГЛОССАРИЙ.......... ......................................... 76
REFERENCE GRAMMAR ГРАММАТИЧЕСКИЙ СПРАВОЧНИК........ 80


ПРЕДИСЛОВИЕ
Курс английского для дилинга предполагает два типа уроков: первый - введение и первичное закрепление грамматического минимума для переводчика; второй - работу с текстом. Последний тип урока является основным. Преподаватель предварительно проводит в классе разбор грамматических и лексических трудностей текста, который задает студентам для чтения и перевода дома. Особое внимание уделяется первичному закреплению репродуктивной лексики, анализу трудных грамматических конструкций и выработке навыка чтения. Самостоятельная работа студента включает: заучивание слов и словосочетаний, тренировку в беглом чтении текста, перевод, ответы на вопросы и пересказ текста по частям с последующим обсуждением содержания.
Тексты могут быть неоднородны (по объему, по трудности, количеству лексики) и потребуют различного времени для усвоения. Выработка умения понимать текст, содержащий незнакомые слова, в значительной мере зависит от хорошего усвоения репродуктивного словаря-минимума. Работа над его усвоением (активизация слов и словосочетаний, перевод, ответы на вопросы, списки синонимов, антонимов, парафраз и т.д.) должна проводиться постоянно и включать периодический контроль (устный опрос, диктант).
Рекомендуется завершать прохождение каждой темы учебного пособия чтением заголовков новостей, обзоров финансовой информации, реклам, оригинальных статей из журналов, проспектов. От студентов требуется общее понимание содержания и скорость чтения 500-600 знаков в минуту. Целью такого ознакомительного чтения является поиск информации и понимание не менее 75% содержания. Для более углубленного понимания текста и его перевода необходима работа с терминологическими словарями по специальности.


















FOREX DEALING


FOREIGN EXCHANGE RATES

Foreign exchange rates are never stable. They move, and
sometimes with dramatic rapidity.
A nominal exchange rate move is the total observed movement in the exchange rate. A real exchange rate move is the
nominal rate movement adjusted for the differential in inflation.

FOREX OPERATIONS

To conduct international payments banks maintain
sufficient working balances in all maior currencies.
Dealers are the people who are directly involved with day-
to-day dealing in foreign exchange, the buying and selling of one currency for another at an agreed rate for delivery on specific dates into specific accounts in specified centres. They close out short and lone positions through purchases and sales and deal with profits and risks of foreign currency trading.

FOREX FORECASTING

Forecasting of foreign exchange rates movements is not a
science but an art. But there are some approaches that yield
good results. The dealer must always be in the picture of bond, commodity and equity market developments. Changes in interest rates and pending deals bring about forex movements.
Market sentiment may change the situation very quickly.
Economic and financial indicators must be constantly
watched to take timely decisions.
In the former days domestic considerations were of
paramount importance now markets are driven by both
domestic and international events. Market rumours usually precede upcoming political and economic events. If a rumour is credible the market acts accordingly and the event itself may not produce any changes in the market situation. This process is reflected in the saving "Buy the rumour, sell the fact".
Economic growth is facilitated by stable prices. The latter is the concern of central banks, which posses considerable
financial resources and can reduce volatility if markets get
carried away.
Limited central bank intervention at the right time may
turn the market.
Vocabulary*


ei


stable -
постоянный
i


rapidity -
быстрота
л


to adjust -
приспосабливать
л


adjustment -
регулирование
e


differential -
разница






i: to 'yield results -
давать результаты
ou


approach -
- подход
working balance - "рабочие" остатки средств на


счетах, средства для
обеспечения повседневной
деятельности






to close out
- закрыть позицию






short position
- "короткая" позиция
long position
- "длинная" позиция
0:


to forecast
- предсказывать,
прогнозировать



to be in the


picture
- быть в курсе событий




e equity (market) -
- капитал, акции, фондовый
рынок



bond
- облигация
commodity
- товар




e sentiment
- настроение
as


paramount
- высший, первостепенный
i:


to precede
- предшествовать
*3десь и далее значения слов взяты из контекста.






The customer takes up positions in foreign exchange by his expectations as to future rate trends. These expectations are influenced by the extremely large number of factors. The latter can be divided up systematically into fundamental and technical factors.



e



'credible
- стоящий доверия
Э:


volatility
- колебание
ae


To carry away
- отклоняться

Comprehension Questions
1. What is the difference between a nominal and real exchange rate?
2. Why is the forecasting of forex rates moves so difficult?
3. What approaches in forex forecasting yield good results?
4. What events drive financial markets nowadays?
5. What market rumours should be taken into account?
6. Why do stable prices facilitate economic growth?
7. How can central banks influence financial markets?
8. What is the customer guided by in taking forex decisions?
Exercises
Ex. 1. Put questions to the underlined words.
Ex. 2. Point out verbal constructions and state their syntactical function in the sentence.
Ex. 3. Read and translate the text.
Ex. 4. Translate this dialogue from English into Russian in writing and from Russian into English orally.
Dialogue
Client: What is the meaning of real exchange fate?
Broker: Inflation changes nominal exchange rate. If British inflation has been 10 percent over the past year, while German inflation has been 0 percent, the pound sterling devalues against the mark by 10 percent.
Client: But the nominal rate does not reflect this change. Does it?
Broker: No it doesn't. We do not sell it. But it takes 10 percent more pounds to buy a mark, 10 percent more pounds to buy a coat in England because of 10 percent inflation there.





















TECHNICAL ANALYSIS

ASSUMPTIONS OF TECHNICAL ANALYSIS
Terms


Technical Analysis
- технический анализ рыночной конъюнктуры. Система методов анализа тенденций движения цен, их разброса и устойчивости, объема операций и других характеристик
Technical analyst, technician
- специалист по техническому анализу
technical conditions (of a market)
- специфические рыночные факторы спроса и предложения, влияющие на конъюнктуру
technical decline (rally)
- ухудшение конъюнктуры под влиянием внутренних факторов (превышение предложения над спросом), а не внешних
technical analysis tool
- инструмент (метод) технического анализа
financial instrument
- финансовый актив или обязательство, являющееся объектом торговли на рынке (ценные бумаги, депозиты, контракты и т.д.)
instrument of loan
- залоговый инструмент
instrument of payment
- средство платежа
instrument of transfer
- трансфертный документ
chart
- график
chartist
- специалист по прогнозированию биржевой конъюнктуры
chart pattern
- фигура технического анализа
price pattern
- график колебания цен
bull market

- рынок "быков", период повышения фондовой конъюнктуры, от
которого выигрывают "быки"
bull
- покупатель, играющий на повышение
bull position
- позиция "быка", когда покупка ценных бумаг превышает их продажу
bullish pattern
- график с повышением фондовой конъюнктуры
bear market
- рынок "медведей", период понижения фондовой конъюнктуры
bear
- торговец, играющий на понижение ("медведь")
bear closing

- обратная покупка "медведями" акций, которые они продали до этого в надежде на снижение цен
market stages
- циклы конъюнктуры рынка
sideways market

- цикл с горизонтальным движением цен, которые изменяются в узких
пределах
trend
- тренд, тенденция развития рынка или движения цены (курса)
to trend up
- двигаться вверх
to trend down
- двигаться вниз
Trendline



1) прямая линия на графике движения цены, отражающая основную
тенденцию

2) линия, соединяющая высшие или низшие точки движения цены (за некоторый период)
up trend
- тренд повышения (цен)







down trend
- тренд понижения (цен)
ranging market
- узкий разброс цен
no trend (congestion)
- перегрузка, "пробка"
to congest (to range)
- вызывать горизонтальное движение цен
low (point)
- низкое значение(цены)
high (point)
- высокое значение (цены)
pivot point
- центр, опорная точка
climax (peak)
- наивысшая точка
test
- приближение цены к точке сопротивления или поддержки
retest
- повторное приближение цены к точке сопротивления (поддержки)
close price
- курс (цена) при закрытии торгов
price limits
- ценовые лимиты (уровни цен в течении рабочего дня на бирже)
price pattern
- фигура движения цены на графике
reversal patterns
- фигуры движения цен, указывающие на смену тенденции (восходящий/ нисходящий треугольник)
price range
- амплитуда колебаний цен (низкая/ высокая) за период
resistance (level)
- уровень сопротивления (приостановка подъема конъюнктуры)
support (level)
- уровень поддержки (приостановка падений конъюнктуры)
break out (level)
- "побег", нарушение устоявшегося движения цен
correction
- коррекция, обратное движение цены или индекса (обычно снижение), выправление (исправление отклонения) тенденции
target price
- плановая, ожидаемая цена
upside
- повышательное (движение цены)
downside
- понижательное (движение цены)
accumulation
- накопление, аккумуляция
to accumulate
- накапливать
accumulation area
- зона аккумуляции, движение цены в определенном коридоре в период накопления, за которым следует резкий подъем
pullback
- "откат"

Market participants never individually agree about the price of a currency, but the overall consensus of the market produces the fair value for the currency. Market price movements are never in one direction for long. A currency may strengthen, then weaken and strengthen again. The technician's challenge is to determine the levels to which a currency will zig up running into selling pressure (resistance level) and the levels to which a currency will zag down running into buying interest (support level). The use of Technical Analysis (ТА) in forecasting time series data continues to grow in popularity, with much of the growth resulting from the increasing need for accurate and timely forecasts of diverse instruments in a global market place. The basic tenets of traditional Technical Analysis, measuring direction and speed of price movement remain little hanged, however.
Vocabulary
i: tenet -принцип
e

to estimate - оценивать, намечать
о: to grasp - понимать
i to predict - предсказывать
to pinpoint - определять точно
л assumption -предположение, допущение










The first concept to grasp is that technicians believe that all available information (historical data, forecasts and market expectations) is being acted on and is reflected in the price. Given market generated data (price, volume, open interest etc), technicians measure direction using a variety of methods. First, there is the trend, which shows the direction in which prices are moving, within different time frames-long term to intra-day. Second, there are chart patterns, which can pinpoint forecasts in both direction and magnitude. The patterns can be in the form of continuation or reversal and show clearly the breakout level and extension targets. Third, momentum studies can be used to gauge changes in trend and probable direction, as well as the timing of moves.
• History repeats
Technical analysis is based on human psychology which tends not to change. The assumption made is that the key to understanding the future lies in the past. Patterns exist. Patterns can estimate future direction. The theory here is that a trend in place is more likely to continue than reverse. People use ТА to identify patterns so as to ride the rising trends, until indicators show signs of a reversal.
• Price information is complete or markets discount everything
Anything that can affect the market price of a commodity - political rumours, changing economic conditions or even psychological perceptions, is already reflected in the market price. Price action according to Technical Analysts should reflect actual shifts in Supply and Demand. Example: Assume the price of gold is increasing. Economists may say that there is a plenty of gold supply and that prices should not be increasing. The market would say that we know there is plenty of gold supply, the price reflects this but demand for gold has increased and therefore prices should be increasing. The weaknesses of fundamental analysis as a rule are complemented by technical forecasting. The latter captures market sentiment, mood and expectations. But on the other hand history does not repeat itself exactly and patterns do not occur in exactly the same way. Circumstances may change and what has worked in the past will not always work in the future. Therefore any trading plan needs to be correctly implemented by using both aproaches: fundamental and technical. If both results are in agreement, the confidence in a forecast is greatly enhanced. Newcomers to the forecasting should observe some guidelines that may be of help. Basic framework of forecasting implies establishing outside markets contacts. Through dialogues the newcomer gains the market participants' rationale behind the forecast. Reading market documents helps to broaden perspective and makes it easier to single out key bullish and bearish fundamental factors. When new to the markets one should devote time to writing forecasts focusing his attention on the most important factors, identifying key points and patterns as they form. Step bv step the newcomer realises that markets sometimes behave irrationally. It is not easy to beat the markets because there are too many variables at work. But making market decisions and assuming responsibility the individual acquires experience in trading the market.
Э:
reverse - поворот назад to ride trends - использовать тренды
au to discount - обесценивать


e to affect - влиять
e perception - ощущение, восприятие
ai supply - предложение
cu demand - спрос
Э:
to occur - происходить, случаться
i to implement - претворять в жизнь, осуществлять
ае




э to complement -дополнять
э 'confidence -уверенность
о: to enhance - усиливать








ei
framework - каркас, структура
i: to beat smth. - обставить, побить
Э variable - переменная



Comprehension Questions
1. Who produces the fair value of the currency?
2. Why do currency prices fluctuate?
3. What is the technician's challenge?
4. What are the basic principles of traditional Technical Analysis?
5. How does history repeat itself?
6. Why do markets discount everything?
7. What approaches in forecasting yield good results?
8. By what events are markets driven now?
9. What precede upcoming political and economic events?
10. What saying reflects this process?
11. In what way do central banks influence financial markets?
12. How are the weaknesses of fundamental analysis complemented?
13. What are the guidelines that newcomers to forecasting should observe?
Exercises
Ex.1. Learn the terms and verb collocations and make up 20 sentences with them.

to agree about the price to produce a fair value to strengthen (to weaken) to run into selling pressure (buying interest) to grow in popularity to be reflected in the price to reflect shifts in Supply, and Demand to gauge changes in trend to be based on psychology to work in the past to lie in the past to estimate future direction to identify patterns to ride the rising trends to show signs of a reversal to discount everything to capture market sentiment to implement a trading plan to use technical approaches to be in agreement with
Ex. 2. Put questions to the underlined words in the text and let your partner answer them.
Ex. 3. Select the subordinate clauses and state of what kind they are (object clause, attributive clause
adverbial modifier clause of time, place, cause, etc.)
Ex. 4. Read and translate the text.
Ex. 5. Draw up a plan of the text and render it.
Comprehension Questions
1. Who produces the fair value of the currency?
2. Why do currency prices fluctuate?
3. What is the technician's challenge?
4. What are the basic principles of traditional Technical Analysis?
5. How does history repeat itself?
6. Why do markets discount everything?
7. What approaches in forecasting yield good results?
8. By what events are markets driven now?
9. What precede upcoming political and economic events?
10. What saying reflects this process?
11. In what way do central banks influence financial markets?
12. How are the weaknesses of fundamental analysis complemented?
13. What are the guidelines that newcomers to forecasting should observe?
Exercises
Ex.1. Learn the terms and verb collocations and make up 20 sentences with them.

to agree about the price to produce a fair value to strengthen (to weaken) to run into selling pressure (buying interest) to grow in popularity to be reflected in the price to reflect shifts in Supply, and Demand to gauge changes in trend to be based on psychology to work in the past to lie in the past to estimate future direction to identify patterns to ride the rising trends to show signs of a reversal to discount everything to capture market sentiment to implement a trading plan to use technical approaches to be in agreement with
Ex. 2. Put questions to the underlined words in the text and let your partner answer them.
Ex. 3. Select the subordinate clauses and state of what kind they are (object clause, attributive clause
adverbial modifier clause of time, place, cause, etc.)
Ex. 4. Read and translate the text.
Ex. 5. Draw up a plan of the text and render it.

MARKET STAGES

Traditionally markets move from Bull markets to Sideways
markets to Bear markets. They move from Bear to Sideways to
Bull. People however tend to forget the sideways market stage
and assume that markets move from Bear to Bull, to Bear. The
only markets that do in fact move from Bull to Bear are the
exceptions and not the rule - they are parabolic markets and are
usually characterised by thin trading volumes.
Traditionally speaking, the market stages can be sum
marized as follows:
> Markets accumulate - go sideways at the end of a down
trend
> Markets then trend up, trending up they have a correction
or a pause
> Markets then climax or peak
> Markets accumulate (distribution - sideways movement
at the top)
Markets trend down


Vocabulary
0:
accordingly - соответственно




au
to'counter - выдвигать контраргумент




time frames - временные рамки




i
to anticipate - предвосхищать




>
e
>
exception - исключение


о volume
- объем
to apply
- применять, использовать
(to be) due
- ожидаемый, обусловленный
ei




A trader does not sell just because the market has been in an up trend for a long time and a change is due. Before you sell, you at least need to see a sideways move in the market. Technical Analysis is applied to markets because: 1. Markets have stages. 2. Within the stages, there are behavioural characteristics. 3. Within the behavioural characteristics, you have specific patterns. There exist three types of market trends: 1. Up Trend 2. Down Trend 3. No Trend-Congestion
behavioural
i sophisticated
э 'option
- поведенческий - сложный - опцион

Comprehension Questions
1. What market stages do you know?
2. What is the most important factor of a price chart?
3. What factors determine the importance and strength of the trend line?
4. How does the trend line act in bear and bull markets?
5. How can up and down trends be identified?


TRENDLINES
The cornerstone of technical analysis theory is that prices discount all known information, and forecasts, and that these prices move in trends. Therefore, the most important factor to determine when looking at a price chart is the direction of the prevailing trend. Trends are evident in all degrees, from intra-day trends in 5-minute bar charts to trends of a few weeks on daily charts, to multi-year trends on weekly and monthly charts. Regardless of magnitude, an uptrend is defined as a series of prices with higher highs and higher lows. A downtrend is most simply a series of lower highs and lower lows. sideways trends
also develop and occur when neither an uptrend nor downtrend is evident. In an uptrend, a trendline can be drawn bv connecting increasingly higher lows. while in a down trend a trendline is usually drawn from increasingly lower highs. The importance and strength of the trendline is determined by the length of time the line exists and the number of times that the trendline halts price movement. Thus. the longer the trendline has existed and the more prices bounce off the trendline, the stronger the trend. In a bull market, the trendline will tend to act as price support, in a bear market the trendline will tend to offer price resistance. Supply pressures
during a bull market will come into play at support levels. pushing prices up off support as supply diminishes. In a bear market supply will increase on upticks, keeping prices under pressure. Demand acts in the reverse order, increasing on price dips in a bull market, decreasing on price upticks in a bear market. Thus. some technicians (particularly those with an economic bent) will refer to a bull trendline as a supply line. Conversely, during a bear market, resistance will be found along the trendline pushing prices lower and lower. This trendline may be viewed as the demand line. indicating where demand will be insufficient to push prices to higher levels. The preferred method of looking at trends is to know the long term trend, multi-year, and then work to daily of intra-day trends.
CHANNELS
Once a trendline is established, technicians attempt to identify a price channel which will contain prices. These are most commonly drawn as parallel lines from a significant high (in a downtrend) or a significant low (in an uptrend). Identifying a change in trend can be a simple matter using technical analysis. Any violation of the current trend confirms a change in trend. For instance, a series of consecutive lower lows and lower highs, following a mn-up in price, could indicate a change in the price trend from up to down. Early identification
of a change in trend may be signalled bv a price breakout
through the trendline and out of the price channel. Trendline and channel drawing is a subiective art, so there are several things to look for to validate the channel penetration.
i technique
e to 'penetrate
ei to maintain
e consecutive
as 'magnitude
as 'valid
i to 'signify

- метод
- проникать
- утверждать
- последовательный
- величина
- имеющий силу
- указывать












First, it is important that the close penetrates the channel.
Penetrations of the high or the low are more often indications of
temporary overbought or oversold conditions in the market,
rather than a change in trend. Second, the extent of penetration
of the close is important. There is a general technical rule of
thumb, that 3% of current market price is the minimum amount
of penetration through the trendline required to validate the
breakout. This should be adjusted to market and trader
requirements though. Third, increased volume on the dav of
prenetration is considered the final confirmation of a legitimate
breakout.
MOVING AVERAGES
Moving averages are the most versatile and widely used of
all technical indicators. Basically, the averages are a smoothing, or trend following device with a time lag. It is important to note that the averages are a lagging indicator and should be used for confirmation of trend.
Moving averages are simply the averages of a set amount of closing price data. For example, if a 9-day average is desired, the closing prices for the last 9 days are added and the total is divided by 9. The most common way to calculate the moving average is to work from the total of the last 9 days' closing prices. Each day the new close is added to the total and the close 10 days back is subtracted. The new total is then divided by the number of days (9). Shorter moving averages e.g. 4-day are more sensitive and hug the price action more closely than the longer averages (30-day, 100-day).
One method used to generate trading signals is to look for
price action to cross over the moving average. Another way is to use a double crossover method. This means that a buy signal is produced when the shorter (9-day) average crosses above the longer (18-day) and a sell signal occurs when the 9-day crosses below the 18-dav moving average. Although this technique of using two averages together lags the market a bit more than the use of a single average, it will produce fewer whipsaws.
Moving averages lag price movements, but this is
acceptable as the average will smooth out "noisy" data. Moving averages can be constructed for any period of time one chooses, but the higher number of days averaged, the more sluggish the average becomes. Many commodity traders find that shorter averages, such as the 3-day, tends to be too volatile. They use instead, a combination of averages. A popular combination is the 4, 9 and 18-day averages. For a longer-term indicator, a 30-day average may also be used, along with 50-day averages or longer. As the moving averages are a lagging technical indicator,
they will almost never position one in the market at precisely the right time. Instead, they help to take profits from the middle of a trend and hold losses to a minimum.
Vocabulary
ae
to validate - устанавливать


to penetrate - проникать


rule of thumb - здравый смысл, опыт




'moving' averages - скользящие средние


э:
'versatile - многосторонний гибкий


lag - отставание


to hug - держаться, следовать


э:
to occur - случаться


i
'whipsaw - мошенничество, двойная
выгода




л 'sluggish - медленный, инертный


ei
to weight - взвешивание компонентов
степени значимости


е
exponential - экспонентный


TYPES OF MOVING AVERAGES
Although technicians use moving averages as a trend following system, there are various methods used to calculate a moving average. The differences occur due to the weights each day's price is given.
A simple moving average gives each price equal weight, and the average is a simple summation of N number of days divided by N.
A weighted moving average gives each price a different weight relative to its position in time. The most common form of weighted average is to give the first price (most historical) a weight of 1, the second a weight of 2, the third a weight of3, etc. up to the number of days in the average. In this type of average the most recent price has the largest effect on the calculated value.
An exponentially smoothed moving average is calculated by taking the previously calculated value and adding a certain percent of the difference between today's price and the previous calculated value. This type of average gives greater weight to the most recent prices.
Studies have shown that there is no single "ideal type" of moving average or moving average period. Choosing a moving average and testing its profitability, via optimisation studies, continues to be the most popular method.
EXERCISES

Ex 1. Match the nouns in the left-hand column to the verbs in right-hand column and make up sentences.

Noun
Verb
Pattern
to determine
reversal p.
to identify
continuation p.
to move out of
large p.
to move into
small p.
to be (in) complete
trend (line)
to reverse
upt.
to end
down t.
to establish
not.
to be in tact
sideways t.
to be reversed
prevailing t.
to be in place
intra-day t.
to be evident
multi-year t.
to turn into
strong t.


weak t.


full t.


bear t.


long-term t.


short-term t.












Price
to push/fall
open p.
to move up (down)
high
to go
low p.
to trend up (down)
close p.
rally to
watched p.
to climax
subsequent p.
to peak
lower p.
go sideway
higher p.
to retrace 50%
price target
to shift from down trend to up trend


to gain control


to regain


to rise on strong volume


to bounce off the support line


to turn down


to climb back but fail


to close to...


to close below...


to settle below...
Volume
to increase
lowv.
to decrease
high v.
to fall
strong v.
to rise
weak v.
to decline
declining v.



Ex. 2 Translate the dialogue from English into Russian in writing and from Russian into English orally.
DIALOGUE
1. What do trend lines indicate? Trend lines indicate trend direction
2. What does a trend line join?
To draw a trend line you must join two extremes that are consecutive (and of similar magnitude).
3. In what case is a trend line not valid?
A trend line must not cut across any other price data - else it is not a valid trend line. A trend line should not be drawn just anywhere.







4. How is an upward trend line drawn?
Graphically, an upward trend line is drawn up toward the top right hand side of the Y-scale.
5. How can you idetify up trends?
There are two ways to identify up trends: look for higher highs and higher lows. Look for extreme pivot points. When joining points to produce a trend line in an upward trending market, you join the low points.
6. What does a climax followed by a retest signified? The end of a trend is usually signified by a climax (peak) followed by a retest of one of the extremes (either the high or the low) whilst it is in the ranging stage. Usually the test is of the low if the trend is moving towards a down trend and on the high if the trend is moving upward.
7. How many points does a down trend require?

• A down trend requires a minimum of four points.
• It needs a lower low (from I to 3) and a lower high (from O to 2).
8. How is a market sideways trend drawn?

• A sideways market requires two extreme points - in this instance A and B.
• To confirm a sideways market there must be a retest of
one of these extreme points (in this instance the retest is
of the low point C).
9. How many highs does an up trend require?



















• An up trend requires a minimum of four points.
• It needs a higher low (from 0 to 2) and a higher high (from 1 to 3).
10. What trend indicators do you know?
Tools that can be used to indicate a trend include:
Trend lines, Moving Averages
11. What trend characteristics are identified by price patterns?
Patterns are used to identify the following characteristics about trends:
1. Trend Identification
2. Trend Reversals
3. Trend Continuation
Trend lines are used to determine what type of trend is in force. General theory is, once a trend line is penetrated, it is a signal for consolidating market - in other words it is time for a sideways movement and not an immediate buy or sell signal as often thought.
Ex. 3. Put questions to the underlined words.
Ex. 4. Read and translate the text.



































TRANSLATION PRACTICE
THE SIGNIFICANCE OF TRENDLINE ANALYSIS

THE MISUSED
Trendlines are one of the simplest and most useful indicators in Technical Analysis. They also happen to be one of the most misused.
"One of the biggest mistakes made by beginners and professionals alike, is inconsistently defining and drawing the trendline. To be useful, the trendline must accurately reflect the definition of the trend."
(Victor Sperandeo)
The Classic Trendline
Like manv other Technical Analyses, trendline analysis is considered an "art" rather than an exact science. This does not mean. however, that a trendline can be drawn "iust anvwhere". Certain conditions must be followed in order to enforce the usefulness of this tool. We will discuss some of the standards maintained by trendline users in the market place today and look at the means of determining where and how trendlines should be drawn. A trendline requires you to ioin three price extremes. This means you need to join three low points when the market is in an up-trend or three high points when it is in a down-trend. Joining less than three points - for instance, joining two, indicates a tentative trendline that mav become valid but still requires confirmation from future price action. When ioinine the three price extremes, the trendline must not cut across any other price data - otherwise it is not a valid trendline.
TRENDLINE SIGNALS
Having drawn the trendline. vou are then able to derive
three essential clues. If prices breach the trendline this indicates a change in the rate at which the market is changing direction. It also indicates that the market may not continue in the same direction it had in the past. However, it does not indicate an immediate change from an up-trend to a down-trend, as many tend to think. It points instead to a change from the existing up or down trend to a sideways trend or a congested market. If any part of the trendline is breached, that trendline should be redrawn or else considered invalid. (See Diagram 1) The steeper the trendline, the less likely it is that the trend will hold. Manv traders use the principle that the steepness of
VOCABULARY
i significance - значение
i .misused - используемый неправильно
inconsistant - непоследовательный, противоречивый
э: enforce - реализовать
i: extreme - крайняя точка

е 'tentative - условный, требующий подтверждения
ai to derive - получать, извещать
и: 'clue - ключ (информация) к решению проблем







the trendline should be 45 degress - but this is a subjective view derived primarily from the work of Gann. Trend channels are often drawn bv traders to identify areas that are overbought (up-trends) or oversold (down-trends).
as 'magnitude
- величина

THE WYCKOFF TRENDLINE
The principles and conditions that make up the "classical trendline" are in many respects a variation of Wyckoffs original findings on this subject. Wyckoff included the following conditions:
Firstly, he argued that a trendline requires you to join only two price extremes as opposed to three. He qualified this by specifying that the two price extremes had to be consecutive and of similar magnitude. {See Diagram 2) This condition of similar magnitude to validate a trendline is now disregarded by most traders using the Classic Trendline conditions. It is however, an important measure of the change in trend. For instance, if a Wyckoff trendline is breached, the concept of similar magnitude indicates the degree of the change in trend of that particular time frame.
I 0:
to disregard - не принимать во внимание
л to recover
- восстанавливать
A second concept included by Wyckoff in his analysis of trendlines, was the idea of a trendline that is "recovered". In other words, the concept that a breach of a trendline does not always automatically render that trendline invalid. Diagram 4 provides us with a great example of this. Market prices break this trendline but then continue to close consecutively higher and closer toward the trendline. Eventually prices break back above the trendline, retest the trendline and then continue up in the direction of the original trend. (See Diagram 3)
Trendlines are one of the most popular tools used to analyse prince action in trending markets. They alert you to changes in market direction and provide you with the valuable signals to buy and sell. The information they give you can be interpreted in an infinite number of ways, but armed with the basis principles, you can work effectively with this analysis and eventually add your own personal touch.
e eventually
- в конце концов
л touch
- свое отношение






















EXERCISES
Ex. 1. Put questions to the underlined words.
Ex. 2. Select sentences which present difficulties for translation and make a syntactical analysis of them.
Ex. 3. Read and translate the text.
Ex. 4. Enact an imaginery dialogue between the author and a dealer. Make the most of the text.










TECHNICAL ANALYSIS CHARTS

TYPES OF CHARTS
The interpretation of price action and forecasting in Technical Analysis can be done by using, a number of different charts, seperately or in conjunction with one another as each has its own characteristics and advantages.
Vocabulary
line chart - линейный график
THE LINE CHART
The closing prices are joined to form a line chart. The latter is useful as closing prices are seen as a very important indicator of the trend. The line chart is also a clear diagram as the direction can be identified at first glance. Traditional technical techniques such as trendlines, moving averages and momentum
э: ei interpretation - толкование
э: to forecast - прогнозировать


d3A in conjunction
- совместно
0:
advantage
- преимущество
to join
- соединять
э a: at 'first 'glance
- с первого взгляда
Bar Chart
- график отрезков (гистограмма)

Bar Chart
Bar Charts collect and represent price information on a vertical bar. The top of the bar is the highest price and the bottom of the bar the lowest. A tick on the left-hand side of the bar denotes the open price and a tick on the right-hand side is the close price. A HiLo Bar Chart is a vertical line that represent the High and Low prices for an interval. These charts are particularly
tick
e 'Elliottwave

- метка
- волна Эллиота

popular with Elliott wave analysts, where the only necessary information are the highs and lows. The type of chart used by analysts, always comes down to individual preference. The popularity of the bar chart is due to:
> Clear representation of data.
> Clear understanding of the relationship between the Open and Close (tells you the result of the war between the buyers and the sellers).
> Can be used with all other types of analysis.
ae 'Candlestick Chart
to assign
- график японская свечка
-
- - называть


CANDLESTICK CHARTS
As with Bar charts, Candlestick Charts use Open, High, Low and Close price data. The major difference is, that if the close is below the open, that is, if the value of the security has fallen, then the bar is coloured in black. If the Close is higher than the Open, the Bar is left clear or white. These charts are very popular among the Japanese who have assigned various names to the different coloured patterns such as hanging man, hammer and morning star. They are flexible (used on their own or combined with analysis tools). Rises and falls in the market are easy to indentify because of the colour scheme. Small candle reflects that buyers and sellers are almost equally placed. The real body represents the range between the intervals open and close. The thin lines at the top and bottom of the real body are called shadows. They represent the interval's high and low.

(black) coloured body - закрашенный цилиндр
high (low) shadow - с верхней (нижней) тенью
ai 'white body - полый цилиндр








Point and Figure Charts
Point and Figure charts are a study of pure price movement with no indication of time or volume trading. This chart filters out insignificant price movements and plots only the rises and falls in market values. A column of "X" denotes rising prices and a column of'0's falling prices.
01
'Point and Figure Chart - график крестиков и роликов

Later columns are displayed to the right of previous columns. X's are only added to a column ofX's if the high is at least one unit higher than the previous X displayed, 0's similarly are only added when the low is at least one unit below the previous 0 displayed. If the current column is a column ofXs, a reversal or a new column of Os will take place only if no new Xs are added to the current interval (that is only if the high price is not higher than the previous high) and the low is at least the reversal number of box sizes below the value represented by the last X displayed.
Point and Figure charts provide very strict rules on how to buy and sell:
to plot - отмечать
later columns - (последующие по времени колонки
э: reversal - перемена направления

>• Buy at the Break of a triple top. >• Sell at the Break of a triple bottom. These charts are particularly useful in a trending market because they keep you in the market. However, in a ranging market, these charts chop you around. A Horizontal Count of the Xs or Os is used for showing a direct link between the width of congestion and the size of the break out from that congestion. For estimating the next high or
to chop around - путать
e to 'estimate - рассчитывать, оценивать
24


POINT AND FIGURE CHARTS
Point and Figure charts are a study of pure price movement with no indication of time or volume trading. This chart filters out insignificant price movements and plots only the rises and falls in market values. A column of "X" denotes rising prices and a column of'0's falling prices.
Later columns are displayed to the right of previous columns. X's are only added to a column ofX's if the high is at least one unit higher than the previous X displayed, 0's similarly are only added when the low is at least one unit below the previous 0 displayed. If the current column is a column ofXs, a reversal or a new column of Os will take place only if no new Xs are added to the current interval (that is only if the high price is not higher than the previous high) and the low is at least the reversal number of box sizes below the value represented by the last X displayed.
Point and Figure charts provide very strict rules on how to buy and sell:

'Point and Figure Chart - график крестиков и ноликов
to plot - отмечать
later columns - (последующие по времени колонки
э: reversal - перемена направления
> Buy at the Break of a triple top.
> Sell at the Break of a triple bottom. These charts are particularly useful in a trending market because they keep you in the market. However, in a ranging market, these charts chop you around. A Horizontal Count of the Xs or Os is used for showing a direct link between the width of congestion and the size of the break out from that congestion. For estimating the next high or
to chop around - путать
e to 'estimate - рассчитывать, оценивать









low target, after a consolidation phase you must take the largest (the most) Xs or Os in one horizontal line (usually near the middle). Multiply the number of boxes in this line by the size of the reversal, then add this number to the point where the break out occurs. The Vertical Count, the count from top to bottom, is a measure of volatility. One must measure the beginning of the break out to when congestion begins then. > multiply the number of boxes in this line by the reversal size and. >• add this to the point where the next break out occurs.
target
break out
to occur
- контрольная плановая цифра предполагаемая цена
- точка прорыва - случаться

Exercises
Ex. I. Put questions to the underlined words.
Ex. 2. Read the text and translate it.
Ex. 3. Discuss the pros and cons of the bar types of charts.


















TECHNICAL ANALYSIS PATTERNS

Price Information: Open-High-Low-Close-OHLC
To accurately read the market, you only need four pieces of information: the Open, the High, the Low and the Close Price.
Vocabulary
e to reflect - рассматривать
The Open Price
This is the price at which the first trade for the day takes place. Both buyers and sellers have had time to reflect upon the markets close on the previous day. Their perceptions will affect whether the stock opens higher or lower the next day. The subsequent price holds the clue as to which side of the market is the more dominant force - the buyers or the sellers.
The High Price
This refers to the highest price at which the security has traded that day. It is at this point that buyers decide not to push the price up any higher or alternatively, when sellers have gained control. If the high is at or near the opening of the day, that is a sign that the sellers have been the dominant force. If the high occurs near the end of the trading session and the open was near the low of the day, the buyers have had control.
u: 'clue - ответ
Э:
to occur to gain control
-
случаться - устанавливать контроль
The Low Price




This refers to the lowest price at which the security has




traded that day. At this point the sellers have decided not to accept a lower price or alternatively, when buyers have gained or regained control of the market.
If the low is near the opening of that day, that is a sign that
the buyers have been the dominant force. If the low is near the close of the day, that is a sign that the sellers are keen to sell and that therefore they have been in control.
The Close Price
The close is also sometimes called the sentiment. It is the
price at which the security is trading at the end of the day. This is the most watched price in analysis as it is seen as the final judgement on who won the day between the buyers and the sellers.
If the close is at or near the high of the day and the opening was near the low, it points toward a day of buying. An intra day chart would also reveal that prices were probably in an upward trending mode all day.
If the close is halfway between the high and low irrespective of the open, that is interpreted as the market being evenly divided. That is, that the buying power was balanced by the selling pressure.
to be keen
- быть заинтересованным




















e


'sentiment
- настроение
















to win the day
- добиться победы

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