Forex Education

Trading industry knowledge. Learn forex trading, investing in stocks, commodities.

  • Home
  • Choose a broker
  • Best Forex Brokers
  • Learn trading
  • Affiliate
  • Contact
  • About us
You are here: Home / Education / Finance education / Hockey Stick Projection

Hockey Stick Projection

by Fxigor

Hockey Stick Projection for a business

For business forecasts or predictions, data points are indicated on a chart, and these data points are connected. Sometimes, business results can sharply go up. And then we can have an interesting shape on a chart like this:
hockey stick graph

A hockey stick projection represents a business forecast increase shape that indicates a few years slow or flat growth. Then the business revenues increasing rapidly for the next few years. The name Hockey Stick Projection is created because the line chart resembles a hockey stick in shape.

VISIT OANDA - APPLY $10.000 Bonus
BEST BROKERS REVIEWS
avatrade ad gold trading
Trillion Dollar Club - Invest & Trade Stocks, Crypto, Forex
trade oil ads
cfd stocks trade - ad
avatrade ad gold trading
avatrade ad gold trading

VISIT OANDA - APPLY $10.000 Bonus
avatrade ad gold trading
Trillion Dollar Club - Invest & Trade Stocks, Crypto, Forex
trade oil ads
cfd stocks trade - ad
avatrade ad gold trading
avatrade ad gold trading

BEST BROKERS REVIEWS
free course banner

fxpro android ad
fxpro android ad
100% bonus hotforex
100% bonus hotforex
trade ETF
supercharged bonus hotforex ad
hfm zerpo spread ad
gold trading hotforex ad
crypto trading capital ad
trade oil ads
cfd stocks trade - ad
avatrade ad gold trading
exness stable spread ad
trade metals ad
trade crypto icm

This forecast will usually show that the business revenues, earnings before interest, taxes, depreciation, and amortization (abbreviated as EBITDA), and EBITDA margins will also improve significantly.

VISIT OANDA - APPLY $10.000 Bonus

 

Understanding hockey stick charts

avatrade ad gold trading
Trillion Dollar Club - Invest & Trade Stocks, Crypto, Forex
trade oil ads
cfd stocks trade - ad
avatrade ad gold trading
avatrade ad gold trading

The hockey stick used for playing a hockey game has a blade, a curve, and a long shaft, which the players hold. Similarly, the hockey stick chart will have low activity levels (indicated on the y axis) over a comparatively shorter period of time. Then, a sudden bend in the chart indicates the chart’s inflection point, followed by a long, straight rise. In addition to business sales, these charts are also used to show massive changes in different areas, like poverty statistics, temperatures worldwide, and scientific research on environmental and medical conditions.

VISIT OANDA - APPLY $10.000 Bonus
BEST BROKERS REVIEWS

VISIT OANDA - APPLY $10.000 Bonus

avatrade ad gold trading
Trillion Dollar Club - Invest & Trade Stocks, Crypto, Forex
trade oil ads
cfd stocks trade - ad
avatrade ad gold trading
avatrade ad gold trading

free course banner
fxpro android ad
fxpro android ad
100% bonus hotforex
100% bonus hotforex
trade ETF
supercharged bonus hotforex ad
hfm zerpo spread ad
gold trading hotforex ad
crypto trading capital ad
trade oil ads
cfd stocks trade - ad
avatrade ad gold trading
exness stable spread ad
trade metals ad
trade crypto icm

One of the advantages of using a hockey stick-shaped chart is that it will be noticed immediately. If there is a major and sudden change in the data from the flat period, it is a clear indication that more attention should be given to understand the factors which caused the change. When there is a significant change in the data over a short period of time, it is important to ensure that if there a fundamental change in the business or other conditions, or whether the change is an aberration, and the business will revert to the original condition soon.

The explanation for business sale

VISIT OANDA - APPLY $10.000 Bonus

If the business owner cannot provide proof to support his rapid growth assumptions, the hockey stick type projections are usually not considered by the buyer to determine the value of the company he wishes to purchase. To convince the buyer that these forecasts are predictable, the seller and his advisors for the deal should consider providing additional information like

– what is the fundamental reason or main catalyst due to which the financial results which were showing flat growth, and now increasing rapidly like a rocket

– in case the EBITDA margins are also increasing, the seller should be able to provide supporting information like the cost structure, which corresponds to the increase in business revenues

avatrade ad gold trading
Trillion Dollar Club - Invest & Trade Stocks, Crypto, Forex
trade oil ads
cfd stocks trade - ad
avatrade ad gold trading
avatrade ad gold trading

VISIT OANDA - APPLY $10.000 Bonus

avatrade ad gold trading
Trillion Dollar Club - Invest & Trade Stocks, Crypto, Forex
trade oil ads
cfd stocks trade - ad
avatrade ad gold trading
avatrade ad gold trading

fxpro android ad
fxpro android ad
100% bonus hotforex
100% bonus hotforex
trade ETF
supercharged bonus hotforex ad
hfm zerpo spread ad
gold trading hotforex ad
crypto trading capital ad
trade oil ads
cfd stocks trade - ad
avatrade ad gold trading
exness stable spread ad
trade metals ad
trade crypto icm

In addition to preparing a projected income statement for the rapid growth predicted, it is also advisable to prepare a statement showing its cash flow and balance sheet.

– it is necessary to analyze if business growth is sensitive to specific factors. It is necessary to plan for different scenarios; the business should have a plan B, plan C. In some cases, when the factors affecting the business growth are very unpredictable, a plan D and plan E may also be necessary

  • Author
  • Recent Posts
Fxigor
Fxigor
Trader at Leanta Capital
Igor has been a trader since 2007. Currently, Igor works for several prop trading companies.
He is an expert in financial niche, long-term trading, and weekly technical levels.

The primary field of Igor's research is the application of machine learning in algorithmic trading.

Education: Computer Engineering and Ph.D. in machine learning.

Igor regularly publishes trading-related videos on the Fxigor Youtube channel.

To contact Igor write on:
igor@forex.in.rs
Fxigor
Latest posts by Fxigor (see all)
  • What is the Best Forex Broker in Australia?
  • What is the Best Forex Broker for Spike Trading?
  • How to Backtest Forex Trading Strategy in MT4? – Video & Text Instruction!

Related posts:

  1. How to Add Crypto to MT4? – Video and Screenshots
  2. What is the Best Forex Broker in the US?
  3. How Much is 38 Euros to AUS Dollars?
  4. How to Fix Oanda MT4 Invalid Account?
  5. Crypto Fund Set Up
  6. What is Long Term Incentive Plan?
  7. Can I Trade on TradingView App?
  8. Total Return Formula
  9. Is Copy Trading Legal?
  10. How to Become a Successful Part Time Forex Trader?
  11. How to Manage 401k During Recession?
  12. Private IPO

Filed Under: Finance education

Trade gold and silver. Visit the broker's page and start trading high liquidity spot metals - the most traded instruments in the world.

Trade Gold & Silver

Diversify your savings with a gold IRA.

Gold & silver portfolio-building assistance from product professionals.

VISIT GOLD IRA COMPANY If you want to trade stocks try: TRADE IDEAS

fxpro android ad
fxpro android ad
100% bonus hotforex
100% bonus hotforex
trade ETF
supercharged bonus hotforex ad
hfm zerpo spread ad
gold trading hotforex ad
crypto trading capital ad
trade oil ads
cfd stocks trade - ad
avatrade ad gold trading
exness stable spread ad
trade metals ad
trade crypto icm
VISIT OANDA - APPLY $10.000 Bonus

Website categories

Main Forex Info

  • Forex Calendar 2023
  • Forex Holidays Calendar 2023 – Holidays Around the World
  • Non-Farm Payroll Dates 2023.
  • Fed Meeting Schedule 2023. Dates! – FOMC Dates
  • Key Economic Indicators For a Country
  • What is PAMM in Forex?
  • Stock Exchange Trading Hours
  • Forex Calculators – Calculators & Tools for Traders

Main navigation:

  • Home
  • About us
  • The Best Forex Brokers of 2023 (Ranked & Reviewed)
  • Free Funded Forex Account Without Deposit in 2023!
  • Best Forex Affiliate Programs in 2023.
  • Best Forex Brokers by Monthly Traffic of 2023
  • Brokers That Accept PayPal Deposits
  • Forex brokers reviews
  • Investment
  • Education

Forex social network

  • RSS
  • Twitter
  • FxIgor Youtube Channel
  • Privacy Policy
  • Contact us

Spanish language

Spanish language website
Risk Warning: Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital. Trading such products is risky and you may lose all of your invested capital. Before deciding to trade, please ensure that you understand the risks involved, taking into account your investment objectives and level of experience.

Copyright Forex.in.rs 2007

Privacy Policy

x
x