SIP REPORT.pdf

A PROJECT REPORT
ON
ANALYSIS ON INTERNATIONAL CURRENCY MARKET
AT
STARFING (BANGALORE)
Submitted to
Prestige Institute of Management, Gwalior
For the partial fulfillment of the award of Master of Business Administration
2019-21
SUBMITTED BY
Garima Lakhotiya

DECLARATION BY THE CANDIDATE
I hereby declare that the training report entitled, “Analysis on International Currency
Market” submitted by me to Prestige Institute of Management, Gwalior in fulfillment of the
requirement for the award of masters of Business Administration is a record of my original
work carried out by me under the guidance of Dr. Prabal Pratap Singh I, further declare
that the work reported in this report has not been submitted, and will not be submitted, either
in part or in full, for the award of any other degree or diploma of this University or to any
other institute or university.
Date:
Place:
Signature of the candidate
Garima Lakhotiya
(Name of the Candidate)

CERTIFICATE FROM FACULTY GUIDE
This is to certify that Mr./ MS. Student of Garima Lakhotiya program has completed
his/her summer training of ………………. Weeks from ………………………….. to
………………………………. and prepared this report entitled
…………………………………………………………………………………………………
…… under my guidance.
His/ her performance during the training was excellent.
Date:
(Signature of Faculty Guide…………………………….)
Dr. Prabal Pratap Singh

CERTIFICATE FROM INDUSTRY
TO WHOMSOEVER IT MAY CONCERN
This is to certify that Ms .Garima Lakhotiya a student of MBA from Prestige Institute of
Management, Gwalior has undergone training in our organization from 1st
May 2020 to 30th
June 2020. The topic of the project was “Analysis on International Currency Market”.
Her performance during the training was excellent. We wish her in her future endeavors
Date:
Place:
Signature and name of the competent authority

ACKNOWLEDGEMENT
I Garima Lakhotiya, extend my sincere thanks to our Director Sir Dr. S.S. Bhakar for
providing me a platform to perform, learn and implement. My sincere thanks are due to Prof.
Abhay Dubey for giving me an opportunity to learn by doing together on this project. I would
like to take this opportunity to express our deep sense of gratitude to Dr. Prabal Pratap Singh
for mentoring and guiding me at each step.
I also thank the Faculty Supervisors and Industrial Supervisors under whose able guidance
and kind cooperation , I was able to complete my study titled , “Analysis on International
Currency Market” , I also thank the people from StarFing Pvt.Ltd. who gave me proper
knowledge about the company. I have put in my best efforts has been made to enhance the
quality of work.

WEEKLY WORK REPORT FORMAT
Name of the Student: Garima Lakhotiya
Course and Section: MBA ‘B’
Weekly report for (Duration of Week) :
WEEK FROM TO DESCRIPTION OF WORK
1 1st
may 7th
may Trading through Analysis of charts
2 8th
may 14th
may Foreign market, Foreign Currency
3 15th
may 21th may Bollinger Bands
4 22th
may 28th
may Presentation, Doubt session
5 29th
may 4th
june Fundamental Analysis
6 5th
june 11th
june Candelsticks types
7 12th
june 18th
june Bullish Harami, Bearish Harami, Time value of money
8 19th
june 25th
june Fiscal policy, Derivative Market
9 26th
june 30th
june Money management video
Thanks and Regards,
Yours Sincerely
Garima Lakhotiya

STUDENTS PERFORMANCE EVALUATION FORM
(To be filled by Industry Guide)
(PERFORMA NO.07)
Name of Student:
Duration for Summer Training:
Department:
Course:
Batch:
You are requested to give your valuable feedback on following parameters on a scale of 1 to
5 where 1 indicates the strongly disagree for the statement and 5 indicates for maximum
agreement for the student’s performance who has undergone training in your valuable
guidance.
Regularity and Punctuality during training
1 2 3 4 5
Openness for Learning and Acceptability of task allotted
1 2 3 4 5
Able to work in team
1 2 3 4 5
Behavior in the Organization
1 2 3 4 5
Quality in work allotted
1 2 3 4 5
Any other observation
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
………………
Date:
Place:
Name and Signature of Industry Guide

STUDENT EVALUATION FORM FOR FACULTY GUIDE
Name of the Student: Garima Lakhotiya
Course: MBA
Specialization: Finance & Marketing
Section: B
Batch: 2019-21
Date and Day when student reported first time :
Kindly give feedback for the following points
1. Whether the student have reported before he/she proceeded for summer training .
a. YES
b. NO
2. Whether the Student get the approval for Topic of Summer Training
a. YES
b. NO
3. Kindly mark the performance of the student for following Parameters on a scale of 1
to 5
a. Regularity and Punctuality during training including reporting and submission of
Weekly wok report
1 2 3 4 5
b. Openness for Learning and Acceptability of task allotted
1 2 3 4 5
c. Able to work in team
1 2 3 4 5
d. Behavior
1 2 3 4 5
e. Quality in work allotted
1 2 3 4 5
Overall Remark on Student performance

…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
………………
Date:
Place:
Name and Signature of Faculty Guide
Note: This evaluation sheet need to be enclosed with the report of the student at the time of
submission.

TABLE OF CONTENTS
S.NO. DESCRIPTION OF WORK PAGE
NO.
1. CHAPTER 1- History Of The Organization , Objectives And
Policies Of The Organization, Vision , Mission, Culture And
Core Values Of The Organization
1-5
2. CHAPTER 2 - SWOT Analysis 6-7
3. CHAPTER 3 – Introduction , Defintion of Topic 8-10
4. Technical analysis is based on three principles 11
5. Charts and Patterns 12-18
6. CHAPTER 4- Research Design 19-20
7. CHAPTER 5- Analysis, Interpretation, Results and
Discussions
21-29
8. CHAPTER 6- Conclusion 30
9. REFRENCES 31

History of Organisation & Objectives of Organisation
We at Star Fing (Star Financial Group) focus in training and educating
individuals about Financial market and to sharpen their skills to participate in
the financial world. Star Fing came alive with the intention to provide support
and guidance to new comers to the trading world. with our knowledge and
years of experience in trading we have customized the training programme and
made it simple for a layman to understand the financial market.
Our courses are targeted for individual investors or traders, novice or
experienced, who want to learn how to use the same tools and techniques as
the professional traders.
These courses offer a complete education and training experience focusing on
trading fundamentals, technical analysis, risk management, and highly-
developed skills of execution for virtually any trading instrument. At Star
Fing we are with a simple aim, we want to teach you how to invest your
money and make profits. If you have ever considered… how to be a trader,
what to trade, what trading software to use or just how you can learn about the
market….look no further. With our trading program we offer a full range of
financial training course all based on price action trading so whether you are
interested in trading futures markets, Commodities, or day trading the currency
markets we can teach you how to trade consistently and profitably. We believe
at Training Traders we can offer the very best Training, Coaching and follow
up Mentorship available anywhere. Your Training Course is just the beginning
of your journey. We take great care and pride in offering strong Mentorship
and Coaching follow up. It does not matter if you are a new trader or
experienced – the education process never ends. No two days are the same in
Markets and all traders learn or should learn every day.
Learning Objectives
At the end of the course, the participants should be able to:
* Recognize the basics of the commodities and Currency market
* Examine the risks and rewards in the Commodities and currency market
* Determine the participants in the Commodities market and their respective
roles
* Appraise the effect of the global market on money stock and money market
liquidity
Technical tools from basic to advanced.
Content and Structure
*Downloading installing and setting up the Trading Software
*How to install your Trading Software
*How to install indicators and templates
Just to give you overview on the topics we shall be initiating with:
1

Basic Class
Types of Trading
Types of charts
Chart Indicators
Trade setup & Rules
Trading Hours
Money Management
Trading Plans
Trade Personality
Trade with News
Carry Trade
Back to Basics
Finance
1. Recognize the basics of the Stocks, commodities and Currency market
2. Examine the risks and rewards in the Stocks Commodities and currency
market
3. Determine the participants in the Commodities market and their respective
roles
4. Good understanding of international commodity market and understanding
of economic data and interest in financial markets.
5. Should increase the knowledge of financial markets.
6. Should have excellent time management, technical skills and analytical
skills.
7. Procurement of new demat & trading Accounts.
8. To educate and advise individuals on investment decisions.
9. An individual to fix up appointments with HNI investors, make
presentations, follow up and close the deals.
10. Learning the importance of relationship between traders and clients.
2

a. Organisational Structure
Organisation structure diagram of StarFing
TRADING SOFTWARE:
Computer programs that facilitate trading of financial products such as stocks
and currency is a Trading Software. Software is usually provided by
brokerage firms that enable their clients to trade financial products and manage
their accounts. Different brokerages will have different software which
determines the interface in which trades are made and information is searched.
Other software can be purchased from third parties to enhance or add to what a
brokerage provides.
Meta trader logo
TRADING PLATFORM USED IN THE INTERNSHIP:
Alok
Murali
Pradeep
Saieshwar
Event
Managemet
Hariharan & Vimal
Operations &
Marketing
Touffiq
HR Dept
Bhavani
Finance Dept
Nagraj
MD
Santhosh T
3

Meta Trader 5, also known as MT5, is an Electronic Trading Platform widely
used by online retail foreign exchange speculators. It was developed by Meta
Software and released in 2005. The software is licensed to foreign exchange
brokers who provide the software to their clients. The software consists of both
a client and server component.
The server component is run by the broker and the client software is provided
to the broker’s customers, who use it to see live streaming prices and charts,
to place orders, and to manage their accounts.
The client is a Microsoft Windows -based application that became popular
mainly due to the ability for end users to write their own trading scripts and
robots that could automate trading.
Competitors
Starfing has a few rivals in the market giving comparable assistance structures.
This challenge causes the organization to remain on its toes and adamantly
approach each challenge.
The contenders are:
1. Zerodha
Zerodha is an Indian monetary help organization and individual from NSE,
BSE, MCX, MCX-SX offers retail and institutional broking, monetary forms
and items exchanging, common assets, and bonds. It was established in the
year 2010, Zerodha is known for its markdown evaluating model and
innovation. It is headquartered in Bangalore and has a nearness in all
significant Indian urban communities.
2. Sharekhan
Sharekhan is the biggest retail business in the nation and the third-biggest
regarding client base after ICICI Direct and HDFC Securities. Sharekhan is
one of the pioneers of internet exchanging India. It offers a wide scope of
money related items and administrations including protections financier,
common reserve circulation, credit against shares, ESOP financing, IPO
financing, and riches the executives.
4

3. Blessed messenger Broking
Quotes
Blessed messenger Broking is an Indian Stock Broking firm settled in the year
1987. The organization is an individual from the Bombay Stock Exchange
(BSE), National Stock Exchange (NSE), National Commodity and Derivatives
Exchange Limited (NCDEX) and the Multi Commodity Exchange of India
Limited (MCX). It is likewise a storehouse member with Central Depository
Services Limited (CDSL). The association has more than 8500 sub-agents and
franchisee outlets over 900 urban regions transversely over India.
4. Religare
Established in the year 1982, at first, Religare was a stock financier firm called
Religare Securities Ltd (RSL) and was admitted to the National Stock
Exchange (NSE) in 1994.
5. India Infoline
IIFL Holdings Limited (previously India Infoline Limited) IIFL and India
Infoline, is an Indian differentiated budgetary administrations organization
headquartered in Mumbai. The association was established by Nirmal Jain.
IIFL is positioned among the main seven money related aggregates in India
and as the top autonomous monetary administrations firm in India regarding
market capitalization.
5

a. Strengths and weaknesses of organization
Strengths
1. Star Fing Private Limited is a main stock, share, cash and item broking firm.
2. They are focused on giving world-class items and administrations.
3. Great preparing administrations and useful experience gave by exchanging a
free demo account.
4. Cooperation and a procedure of constant improvement.
5. every minute of every day administrations gave to customers.
6. A wide scope of monetary administrations offered incorporates money and
items, Land administrations, Life Insurance, and Advisory administrations.
Weakness
1. Under 2% put resources into the money showcase in India.
2. Individuals don't care to go out on a limb so they want to put resources into
plans offered by banks.
3. The vast majority of the Indian populace wants to put resources into gold
and land.
4. A great deal of time and HR spent on preparing customers who might
contribute.
Opportunities
1. No administration charges or expenses under the worldwide market so
financial specialists would win more.
2. To expand attention to their essence to a huge gathering of potential
financial specialists.
3. The youthful populace wants to put resources into offers, wares, and
monetary forms.
4. Likelihood to acquire more.
6

Threats
1. Individuals' dispositions towards the unsafe venture.
2. The passage of new and existing budgetary organizations in the Indian
market.
3. Inflexible monetary measure by the administration.
4. The administration inclines toward the local market more since this market
doesn't yield charges
7

INTRODUCTION OF TOPIC
The currency market or FOREX (Foreign Exchange Market) was created to
facilitate the exchange of currency that becomes necessary as the result of
foreign trade. The International currency market is a market in which
participants from around the world buy and sell different currencies.
Participants include banks, corporations, central banks, investment
management firms, hedge funds, retail forex brokers, and investors.
In trading, there are three types of Analysis: fundamental, technical and
sentimental
A currency in Latin refers to currens, in the most specific sense is money in
any form when in use or circulation as a medium of exchange, especially
circulating banknotes and coins. A more general definition is that a currency is
a system of money (monetary units) in common use, especially for people in a
nation. Under this definition, U.S. dollars (US$), euros (€), Japanese yen (¥),
and pounds sterling (£) are examples of currencies. These various currencies
are recognized as stores of value and are traded between nations in foreign
exchange markets, which determine the relative values of the different
currencies. Currencies in this sense are defined by governments, and each type
has limited boundaries of acceptance.
In finance, a contract for difference (CFD) is a contract between two parties,
typically described as "buyer" and "seller", stipulating that the buyer will pay
to the seller the difference between the current value of an asset and its value
at contract time (if the difference is negative, then the seller pays instead to the
buyer).
A currency pair is the quotation of the relative value of a currency unit against
the unit of another currency in the foreign exchange market. The currency that
is used as the reference is called the counter currency, quote
currency or currency and the currency that is quoted in relation is called
the base currency or transaction currency.
Currencies are bought and sold freely. This is the simultaneous buying of one
currency and the selling of another. For instance, you have some inside
information that leads you to think that the Euro will go up, you want to buy
the Euro pair (or EUR/USD). When you buy the EUR/USD pair you are
actually buying the EUR and selling the US dollar. When you buy the EUR it
is also said that you are “long” the EUR. When you sell the EUR it is also said
that you are “short” the EUR.
More than 80% of the volume is generated by what we call the seven major
currencies:
8

 TheUS dollar (USD)
 The Euro (EUR)
 The British Pound (GBP)
 The Swiss Franc (CHF)
 The Canadian dollar (CAD)
 The Australian dollar (AUD)
 The Japanese Yen (JPY)
Benefits of Trading Currency
Trading the Currency market has several advantages over other financial
markets. Amongst the most important are: liquidity, it’s a 24hr market,
leverage trading (margin), low transaction costs, low minimum investment,
specialized trading, you can trade from anywhere and others.
Accessibility– It’s no wonder that the Currency market has the trading volume
of 3 trillion a day all anyone needs to take part in the action is a computer with
an internet connection.
Liquidity -The foreign exchange market is the largest financial market in the
world with a daily turnover of just over $3 trillion! Now apart from being a
really cool statistic, the sheer massive scope of the Currency market is also one
of its biggest advantages. The enormous volume of daily trades makes it the
most liquid market in the world, which basically means that under normal
market conditions you can buy and sell currency as you please. You can never
be in a jam for currency to buy or stuck with currency that you can’t unload.
24hr Market -The Currency market is open 24 hours a day, so that you can be
right there trading whenever you hear a financial scoop. No need to bite your
fingernails waiting for the opening bell.
Narrow Focus – Unlike the stock market, a smaller market with tens of
thousands of stocks to choose from, the Currency market revolves around
more or less eight major currencies. A narrow choice means no rooms for
confusion, so even though the market is huge, it’s quite easy to get a clear
picture of what’s happening.
The Market Can’t Be Cornered- The colossal size of the Currency market
also makes sure that no one can corner the market. Even banks don’t have
enough pull to really control the market for a long period of time, which makes
it a great place for the little guy to make a move.
List of Major currencies:
Symbol Country Currency
USD United states Dollar
9

EUR Euro
members
Euro
JPY Japan Yen
GBP Great Britain Pound
CHF Switzerland Franc
CAD Canada Canada
dollar
AUD Australia Australian
dollar
NZD New Zealand Dollar
 MINOR CURRENCIES PAIRS- When a currency pair doesn't include the US
dollar, it's called a minor currency pair or a cross-currency pair. Namely
1. EUR/GBP
2. EUR/AUD
3. EUR/NZD
4. EUR/CAD
5. EUR/CHF
6. EUR/JPY
7. GBP/JPY
8. AUD/JPY
9. NZD/JPY
10.CAD/JPY
11. CHF/JPY
12. GBP/AUD
13. GBP/NZD
14. GBP/CAD
15. AUD/NZD
FOREX CHARTS
 Line chart
 Bar chart
 Candle stick chart
LINE CHART
A simple line chart draws a line from one closing price to the next closing
price. When strung together with a line, we can see the general price
movement of a currency pair over a period of time.
BAR CHART
A bar chart is a little more complex. It shows the opening and closing prices,
as well as the high and lows. A bar is simply one segment of time, whether it is
one day, one week or one hour. Bar charts are also called “OHLC” charts,
10

because they include the open, the high, the low, and the close for that
particular currency.
CANDLESTICKS CHART:
Candlesticks charts resemble bar chart in many ways they also show the open ,
high, low, and close price of a specific period.
Technical analysis is based on three principles:
1. Market prices almost always reflect economic events
This means that the real price on the platform fully reflects all economic
events and all the psychological factors that are known in the market an
directly affect market prices. A pure technical analyst is only interested for the
price movements and not for the reasons that have caused any price
fluctuations.
1. Prices move in trends or within trends Technical analysis is used to
determine the behavior of the market.
In technical analysis there are three types of trends:
‘Bull market’ ‘The trend of the bull’ – an upward movement of the price (like
an attack move of a bull where the bull rises his horns upwards’
‘Bear market’ ‘The trend of a bear’ – a downward movement of the price (like
an attack move of a bear scratching you with its nails on its feet).
Flat’ or ‘range’ or ‘trend less’ or ‘side-ways’ market – the price does not
reflect a trend. It does not move upwards or downwards. Instead it moves into
a certain level of prices.
During a bull trend, prices tend to rise quicker than fall. During a bear trend is
exactly the opposite; prices tend to fall quicker than fall.
The basic principles of price movements can be applied when identifying
correctly any kind of trend:
An active trend will keep occurring having a greater possibility to continue
rather than a trend reversal.
2. History repeats itself
Diagrams and charts have been studied and classified for more than 100 years
and the way that many patterns are repeated again and again leading to the
conclusion that human psychology changes and repeats itself during time. A
number of academic studies of the financial markets support that technical
analysis has a confident and fully dedicated audience-supporters especial
11

among active traders who defend the practicality aspect of technical analysis
and believe that it can be profitable since there are scientific studies which
support technical analysis.
Charts and Patterns
Types of charts
There are several types of charts which are used to represent the movement of
stock prices. Most popular charts are mentioned below:
Line Chart
The most basic of the four charts is the line chart because it represents only the
closing prices over a set period of time. The line is formed by connecting the
closing prices over the time frame. Line charts do not provide visual
information of the trading range for the individual points such as the high, low
and opening prices. However, the closing price is often considered to be the
most important price in stock data compared to the high and low for the day
and this is why it is the only value used in line charts.
Bar Charts
The bar chart expands on the line chart by adding several more ley prices of
information to each data point. This vertical line represents the high and low
for the trading period, along with the closing price. The close and open are
represented on the vertical line by a horizontal dash. The opening price on a
bar chart is illustrated by the dash that is located on the left side of the vertical
bar. Conversely, the close is represented by the dash on the right. Generally, if
the left dash (open) is lower than the right dash (Close) then the bar will ne
shaded black, representing an up period for the stock, which means it has
gained value. A bar that is colored red signals that the stock has gone down in
12

the value over that period. When this is the case, the dash on the right (close) is
lower than the dash on the left (open).
Candlestick Charts
The candlestick chart is similar to a bar chart, but it differs in the way that it is
visually constructed. Similar to the bar chart, the candlestick also has a thin
vertical line showing the period’s trading range. The difference comes in the
formation of a wide bar on the vertical line, which illustrates the difference
between the open and close. And, like bar charts, candlesticks also rely heavily
on the use of colors to explain what has happened during the trading period. A
major problem with the candlestick color configuration, however, is that
different sites use different standards; therefore, it is important to understand
the candlestick configuration used at the chart site you are working with.
There are two color constructs for days up and one for days that the price falls.
When the price of the stock is up and closes above the opening trade, the
candlestick will usually be white or clear. If the stock has traded down for the
period, then the candlestick will usually be red or black, depending on the site.
If the stock’s price has closed above the previous day’s close but below the
day’s open, the candlestick will be black or filled with the color that is used to
indicate an up day.
13

READING JAPNEESE CANDLESTICK
In the Seventeenth century, the Japanese developed a method to analyze the
price of rich contracts. This technique is called "candlestick charting. Steven
Nison is credited with popularizing the candlestick chart and has become
recognized as the leading authority on the interpretation of the system.
Candlesticks chart the price fluctuations of a product. A candlestick can
represent any period of time. A currency trader's software can provide charts
representing anywhere from five minutes to one week per candlestick.
A white or empty body displays the bullish candle pattern. It occurs when prices open near
the low price and close near the period's high price.
14

A black or filled body displays the bearish candle pattern. It occurs when prices open near the
high price and close near the period's low price.
Bullish Candlestick Formations
Hammer - The hammer is a bullish pattern if it occurs after a significant downtrend. If the
line occurs after a significant uptrend, it is called a hanging man. A small body and a long
wick identify a hammer. The body can be clear or filled in.
15

Piercing Line - This is a bullish pattern. The first candle is a long bear candle followed by a
long bull candle. The bull candle opens, lower than the bear's low but closes more than
halfway above the middle of the bear candle's body.
Bullish Engulfing Lines - This pattern is strongly bullish if it occurs after a significant
downtrend (it may serve as a reversal pattern). It occurs when a small bearish (filled-in)
candle is engulfed by a large bullish (empty) candle.
Morning Star - This is a bullish pattern signifying a potential bottopn. The star indicates a
possible reversal and the bullish (empty) candle confirms this. The star can be a bullish
(empty) or a bearish (filled-in) candle.
Bullish Doll Star - This star indicates a reversal and a doji indicates indecision. Thus, this
pattern usually indicates a reversal following an indecisive period. You should wait for a
confirmation before trading a doji star.
16

Bearish Candlestick Formations
Long Bearish Candle - A long bearish candle occurs when prices open near the high and
close lower near the low.
Hanging Man - This pattern is bearish if it occurs after a significant uptrend. If this pattern
occurs after a significant downtrend, it is called a hammer. A hanging man is identified by
small candle bodies and a long wick below the bodies (can be either clear or filled in).
Dark Cloud Cover This is a bearish pattern. The pattern is more significant if the second
candle.'s body is below the center of the previous candle's body.
17

Bearish Engulfing Lines - This pattern is strongly bearish if it occurs after a significant
uptrend (it may serve as a reversal pattern). It occurs when a small bullish (empty) candle is
engulfed by a large bearish (filled-in) candle.
Evening Star - This is a bearish pattern signifying a potential top. The star indicates a
possible reversal and the bearish (filled-in) candle confirms this. The .star can be a bullish
(empty) candle or a bearish (filled-in) candle.
18

CHAPTER 4
RESEARCH DESIGN
a. OBJECTIVES OF THE STUDY
 To Examine the currency market.
 To describe the basic features of this currency market.
 To Understand market using technical analysis on the currencies-
USD, EUR, GBP, CHF, AUD, CAD and JPY
b. The Study Design- The study of this research works on forex with all seven
currencies such as USD, EUR, GBP, CHF, AUD, CAD and JPY in the currency
market using technical indicators and use secondary data.
c. The Sample Design- The study is causal in nature.
d. The Tools for Data Collection- The data collection for my study is secondary data
only, because I’ve collected all the data from books and from websites.
e. The Tools used for Data Analysis-
1) Fundamental Analysis
2) Technical Analysis
3) Sentimental Analysis
Fundamental Analysis :
Some of the fundamental factors of G7 currencies which drives most of the
volume of currency markets. Factors like GDP, Interest rates, Inflations,
Export & Imports, Fiscal policies of the countries etc can affect the value of
Exchange rate and its investments.
Technical Analysis :
With the help of Price, Volume, charts we can predict the exchange rates. In
our current organizations, Technical Indicators in Technical Analysis like
Relative Strengths Index, Stochastic Oscillators, Bolliger Band, Moving
Average etc are used to predict currency and trade in International currency
markets.
Sentimental Analysis :
In this method, we added quantitative techniques in our technical analysis
softwares like simple moving averages, exponential moving averages, MACD
etc or other quantitative techniques utilized in this study to come to
conclusions.
19

Technical indicators such as:
 RSI (RELATIVE STRENGTH INDEX)- The relative quality record (RSI)
is an energy marker that estimates the size of late value changes to assess
overbought or oversold conditions in the cost of a stock or other resources.
The RSI is shown as an oscillator and can have a perusing from 0 to 100.
 STOCHASTIC OSCILLATOR- a stochastic oscillator is a momentum
indicator comparing a particular closing price of a security to a range of
this prices over a certain period. The sensitivity of the oscillator to market
movements is reducible by adjusting that period or by taking a moving
average of the result. It is used to generate overbought and oversold trading
signals, utilizing a 0-100 bounded range of values.
 MOVING AVERAGES- A moving average trend line flows out
fluctuations in data to show a pattern or trend more clearly. A moving
average trend line uses a specific number of data points( set by the period
option), average them, and uses the average value as a point in the trend
line.
 BOLLINGER BAND – A Bollinger Band is a technical analysis tool
defined by a set of lines plotted two standard deviations (positively and
negatively) away from a Simple Moving Average(SMA) of the security’s
price, but can be adjusted to user preferences.
 ICHIMOKU- Ichimoku kinko hyo is a pointer that measures future value
force and decides future territories of help and opposition.
20

CHAPTER 5
ANALYSIS,
INTERPRETATION,
RESULTS AND
DISCUSSION

Technical analysis is the study of historical price action in order to identify patterns and
determine probabilities of future movements in the market through the use of technical
studies, indicators, and other analysis tools.
Technical analysis boils down to two things:
1. identifying trend
2. identifying support/resistance through the use of price charts and/or timeframes
Markets can only do three things: move up, down, or sideways.
Prices typically move in a zigzag fashion, and as a result, price action has only two states:
 Range – when prices zigzag sideways
 Trend – prices either zigzag higher (up trend, or bull trend), or prices zigzag lower
(down trend, or bear trend)
RESULTS, ANALYSIS AND DISCUSSIONS
Technical Analysis
Technical analysis is a method or forecasting prices movement using historical
data analysis. All of the market’s basic principles are reflected in real data.
Thus , a market basic principles and several factors like for example different
experts opinions , investors fears and expectations , and market participants
psychology, do not need to be studied.
Prices move in trends or within trends. Technical analysis basically do not
believe that price fluctuations are random and unpredictable. Prices can move
in any of the following three directions: upwards, downwards , or sideways.
As soon a pattern is identified it usually lasts for a period of time.
21

Technical analysis of any strategic technical system include prices diagrams,
volume diagrams and several other mathematical calculations and formulas
demonstrating diagrams forecasting models and market behavior. All these
mathematical calculations and modeling are used to determine the strength that
a particular pattern will continue to exist. Thus, instead of just using price
diagrams they also use a variety of others technical tools before reaching to an
investment decision and execute a transaction.
Currency in different nations are exchanged this market which is at the same
time purchased and sold, for example buying one money and selling other
money in the meantime, monetary forms are traded through a broker or dealer.
There are Seven monetary forms that are typically exchanged:
1. USD (USD Dollar)
The US Dollar is the single most popular currency in the world, and is the
dominant reserve currency in use around the globe. The USD is often called
'The Greenback' in reference to its green coloring and can often be a favourite
vehicle of traders looking to buy assets from or in The United States.
2. AUD( AUD Dollar)
AUD is the abbreviation for the Australian dollar, also known as
the Aussie dollar or the Aussie, in the international currency market. AUD
replaced the Australian pound in 1966, and marked its 50th anniversary as a
currency in 2016.
3. CAD( CAD Dollar)
CAD, nicknamed the "loonie", is the currency abbreviation or currency
symbol used to denote the Canadian dollar. One Canadian dollar is made up of
100 cents and is often presented as C$ to distinguish it from other currencies
denominated in dollars, such as the U.S. dollar. CAD is the official currency of
Canada and is considered to be a benchmark currency, meaning that many
central banks across the globe keep Canadian dollars as a reserve currency.
4. EUR( EURO Dollar)
EUR is the currency code used in the general industry to represent the euro,
the official currency for 19 of the 28 members of the European Union (EU).
There will be 27 countries in the EU when the United Kingdom leaves the
union as a result of the Brexit referendum.
22

5. JPY(Japanese yen)
JPY is the currency abbreviation or the currency symbol for the
Japanese yen (JPY), the national currency for Japan and the Republic of the
Union of Myanmar. The yen is made up of 100 sen or 1000 rin and is often
presented with the symbol ¥.
6. CHF(Swiss franc)
CHF is the abbreviation for the Swiss franc, the official legal tender of
Switzerland and Liechtenstein. CHF stands for Confoederatio Helvetica Franc,
where Confoederatio Helvetica is the Latin name for the Swiss Confederation.
It is the only Franc that is still issued in Europe after the other nations, that
used to denominate their currencies in Francs, adopted the Euro. The Swiss
Franc is often called the swissie by currency market traders, and it is the
seventh most traded currency in the world.
7. GBP (British pound sterling)
GBP is the abbreviation for the British pound sterling, the official currency of
the United Kingdom, the British Overseas Territories of South Georgia, the
South Sandwich Islands, and British Antarctic Territory and the U.K. crown
dependencies the Isle of Man and the Channel Islands. The African country of
Zimbabwe also uses the pound.
Technical Analysis combined with quantitative approach on Currency
Market:
Technical Analysis is the analysis based on price, history and volume. There
are various indicators which are utilized in predicting the levels of currency
pairs trading. Some charts help identify the market volatility and bullish or
bearish pattern to take buy and sell decision. Some candle sticks also point out
indecision regarding markets. It is not possible to discuss all of the indicators
but some of the Indicators are discussed below for references:
 Moving Averages
Most chart patterns show a lot of variation in price movement. This can make
it difficult for traders to get an idea of a security’s overall trend. One simple
method traders use to combat this is to apply moving averages. A moving
average is the average price of a security over a set amount of time. By
plotting a security’s average price, the price movement is smoothed out.
23

Once the day-to-day fluctuations are removed, traders are better able to
identify the true trend and increase the probability that it will work in their
favor.
 Simple Moving Average (SMA)
It simply takes the sum of all of the past closing prices over the time period
and divides the result by the number of prices used in the calculation.
As an example, in a 14 – day moving averages, the last 14 closing prices are
added together and then divided by 14. Blue line is the simple moving average
line in the charts below.
A trader is able to make the average less responsive to changing prices by
increasing the number of periods used in the calculation. Increasing the
number of time periods in the calculation is one of the best ways to gauge the
strength of the long – term trend.
 Linear weighted Average
This moving average indicator is the least common out of the three and is used
to address the problem of the equal weighting. The linear weighted moving
average is calculated by taking the sum of all the closing prices over a certain
time period and multiplying them by the position of the data point and the
dividing by the sum of the number of periods. For example, in a five – day
linear weighted average, today’s closing price is multiplied by five,
yesterday’s by four and so on until the first day in the period range is reached.
These numbers are then added together and divided by the sum of the
multipliers.
 Exponential Moving Average (EMA)
This moving average calculation uses a smoothing factor to place a higher
weight on recent data points and is regarded as much more efficient than the
24

linear weighted average. The most important thing to remember about the
exponential moving average is that it is more responsive to new information
relative to the simple moving average. This responsiveness is one of the key
factors of why this is the moving average of choice among many technical
traders.
Moving average trend reversals are formed in two main ways: when the price
moves through a moving average and when it moves through moving average
crossovers. The first common signal is when the price moves through an
important moving average.
For example, when the price of a security that was in an uptrend falls below a
50- period moving average, like in Figure 4, it is a sign that the uptrend may be
reversing.
Support & Resistance lines - make or break price points
From a strategic point of view, support and resistance levels represent smart
places to anticipate a reaction in the price of an asset, and therefore represent a
basic tool in technical analysis.
Numerous traders use them, but the diversity in application and integration tell
us that charting is definitely not an exact science and more of an art.
One of the most common mistakes that new traders make is buying too close
to a line of resistance or selling too close to a line of support. In this page we
provide enough set-ups and real-time examples, to make sure you thoroughly
understand this simple yet important dynamic.
25

Relative Strength Index (RSI)
The Relative Strength Index (RSI), developed by J. Welles Wilder, is a
momentum oscillator that measures the speed and change of price movements.
The RSI oscillates between zero and 100. Traditionally the RSI is considered
overbought when above 70 and oversold when below 30. Signals can be
generated by looking for divergences and failure swings. RSI can also be used
to identify the general trend.
How this indicator works
 RSI is considered overbought when above 70 and oversold when below 30.
These traditional levels can also be adjusted if necessary to better fit the
security. For example, if a security is repeatedly reaching the overbought level
of 70 you may want to adjust this level to 80.
Note: During strong trends, the RSI may remain in overbought or oversold for
extended periods.
 RSI also often forms chart patterns that may not show on the underlying price
chart, such as double tops and bottoms and trend lines. Also, look for support
or resistance on the RSI.
 In an uptrend or bull market, the RSI tends to remain in the 40 to 90 range with
the 40-50 zone acting as support. During a downtrend or bear market the RSI
tends to stay between the 10 to 60 range with the 50-60 zone acting as
resistance. These ranges will vary depending on the RSI settings and the
strength of the security’s or market’s underlying trend.
 If underlying prices make a new high or low that isn't confirmed by the RSI,
this divergence can signal a price reversal. If the RSI makes a lower high and
then follows with a downside move below a previous low, a Top Swing
Failure has occurred. If the RSI makes a higher low and then follows with an
upside move above a previous high, a Bottom Swing Failure has occurred.
26

Calculation
The RSI is a fairly simple formula, but is difficult to explain without pages of
examples. Refer to Wilder's book for additional calculation information. The
basic formula is:
RSI = 100 – [100 / ( 1 + (Average of Upward Price Change / Average of
Downward Price Change )
Definition of 'Bollinger Band'
A band plotted two standard deviations away from a simple moving average
developed by famous technical trader John Bollinger.
Bollinger Band
Because standard deviation is a measure of volatility, Bollinger Bands adjust
themselves to the market conditions. When the markets become more volatile,
the bands widen (move further away from the average), and during less
volatile periods, the bands contract (move closer to the average). The
tightening of the bands is often used by technical traders as an early indication
that the volatility is about to increase.
27

How this indicator works
 When the bands tighten during a period of low volatility, it raises the
likelihood of a sharp price move in either direction. This may begin a trending
move. Watch out for a false move in opposite direction which reverses before
the proper trend begins.
 When the bands separate by an unusual large amount, volatility increases and
any existing trend may be ending.
Calculation
First, calculate a simple moving average. Next, calculate the standard
deviation over the same number of periods as the simple moving average. For
the upper band, add the standard deviation to the moving average. For the
lower band, subtract the standard deviation from the moving average.
Typical values used:
Short term: 10 day moving average, bands at 1.5 standard deviations. (1.5
times the standard dev. +/- the SMA)
Medium term: 20 day moving average, bands at 2 standard deviations.
Long term: 50 day moving average, bands at 2.5 standard deviations.
Moving Average Convergence Divergence
The moving average convergence divergence (MACD) is one of the most well
known and used indicators in technical analysis. This indicator is comprised of
two exponential moving averages, which help to measure momentum in the
security. The MACD is simply the difference between these two moving
averages plotted against a centerline. The centreline is the point at which the
two moving averages are equal. Along with the MACD and the centreline, an
exponential moving average of the MACD itself is plotted on the chart. The
idea behind this is the momentum.
28

MACD = Shorter term moving average – longer term moving average
ICHIMOKU
Ichimoku kinko hyo (IKH) is an indicator that gauges future price momentum
and determines future areas of support and resistance.
 When the prices is a above the cloud , we’re in a bullish trend.
 When the price is below the cloud , we’re in a bearish trend.
 When the price is in the middle of the cloud the trend is consolidating or
ranging.
29

.
CHAPTER 6
SUGGESTIONS,
IMPLICATIONS
AND CONCLUSION

CONCLUSION
The currency market is the world’s largest financial market. It is a 7 trillion
international market where every second is an opportunity to earn big money.
It is a highly potential international market where traders from all over the
world participate. It is 24*5 hours working market, where all the major
currencies of the world like the US dollar, British pounds, Euro’s, Japanese
Yen, Australian Dollar, and commodities like Gold and Silver are traded. It is
a highly potential market, where you can earn more profit compared to other
segments.
Here, the principal expert looks at currency by utilizing certain elements of
evaluation, look at its valuation with another money, and decide whether the
current cost is the present estimation of the pairing or if the expense of one
money towards some other is underestimated or misrepresented.
To make a confirm buy/sell call we don’t just use one indicator nor we don’t
depend on one indicator itself. We use more than three indicators for a
confirmation and those three indicators together gives a confirmation of one
particular signal weather buy/sell. Then the investor will make a call
confidently. By this we have a quite good advantage because not every
indicator is 100% perfectly predictable, each indicator has a percentage worth
on it when we combine three to four indicator together we will have a right
call over each analysis.
If the currency is undervalued, at that point the broker’s response to the basic
assessment is to accept a long position on the underestimated money in order
to make a benefit from normal change in the valuation towards the genuine
valuation. Like wise, if the fundamental examiner sees a money as
exaggerated, a short position could be accepted with an end goal to pick up
from a future descending draw nearer to genuine valuation.
Finally, all the merchants who accurately utilize principal examination will
probably observe a greater portion of these market developments and this may
hold markets, it is that fundamentals that CFD dealers have the least broad
comprehension , rather technical indicators with not just depending on one ,but
combinations of many indicators would clarity to make trades rather with less
comprehension of powers that can influence the universe of money market.
30

REFRENCES
 www.starnetfx.com
 www.starfing.com
 https://www.forexfactory.com/
 https://www.currenciesdirect.com/en
 http://www.ijsrp.org/research-paper-0314/ijsrp-p2722.pdf
 https://files.stlouisfed.org/files/htdocs/wp/2011/2011-001.pdf
 https://www.ripublication.com/gjmbs_spl/gjmbsv3n8_12.pdf
 http://lrc.acharyainstitutes.in:8080/jspui/bitstream/123456789/1389/1/An%20
Analytical%20Study%20on%20Forex%20Market%20at%20J%20Wings.pdf
 https://www.fxstreet.com/technical-analysis/support-resistance
 https://www.fidelity.com/learning-center/trading-investing/technical-
analysis/technical-indicator-guide/bollinger-bands
31

Day Date Description of Work
1 1/5/2020 Theoritical study of stock market, opening Demo account, Notes provided
2 2/5/2020 Trading Through Analysis of Charts
3 3/5/2020 Holiday (Sunday)
4 4/5/2020 Live Trading with Stop Loss and Target Profit, explain with video Contract For Difference(CF
5 5/5/2020 Piercing Line explain with video
6 6/5/2020 Explain High Low in Excel, Foreign Currency
7 7/5/2020 Retracements explain withvideo
8 8/5/2020 Trading Strategies video
9 9/5/2020 Forex Market
10 10/5/2020 Line Charts
11 11/5/2020 Currenciesdirect.com
12 12/5/2020 Fibonacci, Icchimoko
13 13/5/2020 Doubt Session,Presentation
16 16/5/2020 Candlesticks, Line and Bar Charts explain in Detail
in detail, Bollinger Bands
23 23/5/2020 No session
29 29/5/2020 Explain Fundamental Analysis, how to find out exchange rate
30 30/5/2020 No session
32 1/6/2020 Charts
33 2/6/2020 Types of Candlesticks
34 3/6/2020 Top down Analysis
35 4/6/2020 Resitance and support calculations formulas
36 5/6/2020 Technical Analysis
Analysis, sentimental Analysis
37 6/6/2020 No session
39 8/6/2020 Harami, hammer candlesticks explain through diagram
40 9/6/2020 How to make client..Marketing session
NAME: Garima Lakhotiya
Class: MBA 'B'
Company: Starfing
Daily Report of Summer Internship

41 10/6/2020 Buying opportunity Bollinger Bands explain with video Moviing Averages: Simple and Expon
43 12/6/2020 Again opening live account
44 13/6/2020 No session
46 15/6/2020 Favourable and unfavourable news
47 16/6/2020 Time value of money, derivatives video, money management video
48 17/6/2020 Trending Market, Choppy market
49 18/6/2020 double doji candlesticks
50 19/6/2020 Bullish harami, Bearish Harami
51 20/6/2020 No session
53 22/6/2020 Fiscal Policy, Monetary Policy with central bank
54 23/6/2020 overbought, oversold video
56 25/6/2020 Derivative Market
58 27/6/2020 No session
60 29/6/2020 Money Management video, Presentation
61 30/6/2020 Again opening live account

erages: Simple and Exponential

SIP REPORT.pdf

More Related Content

Similar to SIP REPORT.pdf

Recently uploaded

SIP REPORT.pdf