Forex encyclopedia

Real estate market of the USA plays a great role for its economy and in the results impacts on currency rate. There are two key reports for housing building among residents of the country, one of which represents the number of new constructions of houses - Housing Starts. This is a fundamental indicator that provides the amount of houses in process of construction. This index consists of three parts: single-family houses, townhouses or small condos and apartment buildings with five or more units. Every apartment is considered as a single unit. For example, multistorey house with 50 apartments is accounted as 50 new house units. It is also noteworthy that single-family houses amount to about 85% from total amount of new houses.

Andrew’s Pitchfork is the indicator which is used in market technical analysis and was designed by Alan Andrews. It represents three lines, parallel to each other, upon that, median line is equidistant from upper and bottom lines of channel. This way trend channel is constituted, which is divided into two smaller channels (watch pic. 1). Each of the lines is the support or resistance line. In Alan Andrews' terms, maximum and minimum points serve as pivot points in which price changes its direction. Author used B and C lettes for designation. A letter marks the start of the median line – starting point of trend. For building the median line, it is required to find an average price between those two points which in its turn should be pivot as well and be the price of the previous maximum or minimum.(watch pic. 2).