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.
Popular article: Renko Trading System
This type of chart is applied in technical analysis, which renders movement of the price in the form of diagonal rows consisting from rectangles (bricks). Each new rectangle is always built to the right from the previous one and its location is higher or below the previous Renko rectangle. Mentioned upward or downward movement of price (for example, each 10 points) is marked by adding rectangle below (above) and to the right from the previous one. Upward movement is indicated by a transparent brick whereas downward movement (below previous value) – by a colored brick.
New in Encyclopedia
Picture of the day
Forex trading in Pakistan
Forex encyclopedia
Forex encyclopedia “Clever FX” is the unique service created by FreshForex to introduce world of Forex to traders. The main purpose is to share knowledge of experienced traders with novice traders in simple and convenient form. Every trader will be able to learn something new here. If you are a professional trader, we invite you to write an article for “Clever FX” and get reward. Let's write Forex history together!
Close
Log in
Your browser does not support cookie. If cookie is disabled in your Internet browser, you may have problems with accessing Client Area. How to enable cookie .
manager photo manager photo
Online-support
We will be pleased to answer any questions you may have

Write

Get bonus