Financial Markets & Investments students, enrolled in the Technical Analysis elective, finished the course with a trading simulation in the Bloomberg room in a competition to gain extra points to boost their grades.
The simulation utilised everything the students had learned throughout the course about analysing data and charts to project market swings and capitalise on investment opportunities. Recreating a trading floor, students had to negotiate prices to buy and sell in real time in the hopes of making a profit.
Technical analysis is one way to trade in financial markets, aside from the more commonly used fundamental analysis. It involves looking for patterns in the behaviour of stocks, currencies and
everything else you can trade in financial markets. The most common instruments are the Elliot wave theory and the Fibonacci retracements.
The Elliott Wave Principle is a form of technical analysis that some traders use to analyse financial market cycles and forecast market trends by identifying extremes in investor psychology, highs and lows in prices, and other collective factors.
Fibonacci retracement is based on the idea that markets will retrace a predictable portion of a move, after which they will continue to move in the original direction.