Understanding share, commodities and forex markets technically

Renowned market analyst Rabindra Bhattarai has brought yet another book ‘Share, Commodities and Bideshi Mudrako Prabidhik Bishleshan’ –Technical Analysis of Share, Commodity and Forex Markets.
The book – under ‘financial literacy series’ of Securities Research Centre and Services (SRCS) – helps investors to understand these markets technically.
Share, commodity and forex markets are highly unpredictable thus technical and fundamental analysis help the investors to take right decisions on when the market goes up and comes down, when to buy and when sell, and how low the market can plunge and how high it can swing.
Though the domestic share market is a decade-and-a half old and the commodity and forex market has just started operating, the investors have not been much aware of the scientific methods of analysis like fundamental analysis and technical analysis.
They have been investing on hear-say instead of understanding the dynamics of the market making them loose their hard earned money. Thus, the book could help financially literate the investors. A sensible investor never loses but a naïve does.
The book could be a guide for the sensible investors to understand the market movements and take advantages.
Fundamental Analysis looks at Earnings per Share (EPS), Price to Earnings Ratio (P/E), Projected Earning Growth (PEG), http://stocks.about.com/od/evaluatingstocks/a/ps.htmPrice to Book (P/B), Dividend Payout Ratio, Dividend Yield, Book Value and Return on Equity, whereas Technical Analysis helps to evaluate future prices and market directions based on statistical analysis of variables such as trading volume, and price changes to identify patterns.
The book discusses the tools and analysis methods like Candlestick Analysis, Relative Strength index (RSI), Moving Average Convergence-Divergence (MACD), A-D Ratio, Bollinger Band, Fibonacci Retrenchment, Stochastic Oscillator and Pivot Point Analysis.
Similarly, Fundamental Analysis looks at a share’s market price in light of the company’s underlying business proposition and financial situation. It involves making both quantitative and qualitative judgements about a company. Fundamental analysis can be contrasted with 'technical analysis’, which seeks to make judgments about the performance of a share based solely on its historic price behaviour and without reference to the underlying business, the sector it's in, or the economy as a whole.
The analysis is done by tracking and charting the companies’ stock price, volume of shares traded day to day, both on the company itself and also on its competitors. In this way investors hope to build up a picture of future price movements.
Had the author given more examples of past market movements in the Nepal Stock Exchange (Nepse), the book would have been more enlightening to the investors to analyse their past mistakes.
However, the book has also included a chapter on astrological relations to the market, which could be beneficial to the investors.
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Book: Share, Commodities and Bideshi Mudrako Prabidhik Bishleshan
Author: Rabindra Bhattarai
Publisher: Securities Research Centre and Services (SRCS)
Price: Rs 150