Forex encyclopedia

Purchasing Managers' Index (National Association of Purchasing, PMI index) represents a summary report of surveying managers in the field of industry. PMI index is used to measure change of production output, the number of new industrial orders, inventories as well as operation speed of suppliers. The goal of this economic indicator is to provide the information about shaping of price policy, tendencies in business and broadly in the economy. PMI (otherwise called NAPM) is measured as percentage % from 1 to 100. Respondents to the survey answers simple questions. Choice of answers is usually limited by “yes”, “no” and “no change”. Taking into account the structure of questions, it is hard to escape a conclusion that psychological factors heavily impact index value, which can distort figures.

Median price is the technical analysis tool, which is pictured as the line laid between the highest and lowest price for a certain period of time. Median Price = (highi + lowi)/2