G19 - General Financial Markets: OtherReturn

Technical analysis is a method of predicting price movements and future market trends by studying charts and future of past market action. By technical analysts are used past information about prices, volume of trading and indexes for predicting futures prices movements. Technical analysis is a subjective "art" or skill whose success depends on a great deal on the analyst experience. Technical analysis is based on three underlying principles: 1.Market action discounts everything, 2.Patterns exists and 3.History repeat itself. The technical analyst has a wide variety of technical analysis tools and techniques to choose from. It is possible all tools of technical analysis dividing into too group. First of them contents different types of charts and seconds of them is composed from technical indicators. There are several types in Europe and America less known charts of technical analysis as for example Kagi Chart, Three Line Break Chart and Renko Chart. These types of charts can be successfully used for identification changes of trend on the capital, commodity or currency markets. Basic principles for plotting these types of charts are special, however very clear. Their basic principles come from Japanese philosophy.

Exchanges, as a specific type of market appeared in Italian towns Luca, Genoa, Florence, Venice and Milan in the 12th and 13th centuries. Importance of the first Exchange was only local and they were mostly based on bill, debenture and coins trades. The first important Exchange building was built in Antwerp in 1531. The beginning of the period, in which modern Exchange emerged, goes back to the Amsterdam Exchange, which from 17th century started to apply modern speculative trades with bonds and especially with stocks. The importance of the local Exchange was declining in the 20th century and the importance of large, international Exchange in the same time was growing. The new common trading systems, Exchange alliances and groups were created. The new financial instruments, as for example derivatives, DR, ETF´s and others, were emerged. The turn of 20th and 21st century is directly linked to the capital market globalisation process. The history of Czech Exchange business is very short, but rich. The Prague Commodity and Securities Exchange worked from 1871 to 1938. The tradition of the Czech Exchange business found its continuation in the 1990s. Trading on the Prague Stock Exchange was started 6th April 1993.