If a trader expects the general level of interest rates to rise there are a number of ways to take a position on this. These include buying an interest rate swap where the trader is a fixed rate payer and floating rate receiver, buying FRAs, shorting liquid long-duration risk-free bonds and selling interest rate futures.
The Study of Trends
At its heart, technical analysis represents the study of price trends (or anticipated trends). In price terms, at their most basic, these can be divided into uptrends and downtrends. Within such trends, we see points where little price action occurs and conversely other points reflecting substantial price action and market tension. The idea behind support [...]