FXstreet.com: Education: Technical Analysis

Currency Corner: Trading in the pits

editor@YTEmagazine.com (YourTradingEdge) — Thu, 14 Jan 2010 16:18:27 GMT

This article is taken from the YourTradingEdge magazine (SEP/OCT 2009 issue) The author, Wayne McDonell is the Chief Currency Coach of FX Bootcamp. He is a member of the US National Futures Association and registered as a Commodities Trading Advisor. His latest book ‘ The FX Bootcamp Guide to Strategic and Tactical Forex Trading ’ is available from Wiley Publishing. Wayne McDonell provides analysis of the currency market: how professionals use weekly pivot points. "A few weeks ago, I was lucky

Introduction and Oscillator Divergence/Momentum Confirmation

RHunt@PatternTrapper.com (Pattern Trapper) — Wed, 23 Dec 2009 15:18:44 GMT

Technical analysis can be defined as the study of past price behavior in an effort to determine patterns and trends that are believed to be predictable of the future. At the core of this school of thought is the assumption that human behavior is repetitive in nature. We all recognize that, although human behavior patterns may have recurrent tendencies, they do not normally express themselves in the same exact, mechanical manner each time. Even with this qualification in mind, technical

Pivot System Support and Resistance

RHunt@PatternTrapper.com (Pattern Trapper) — Wed, 23 Dec 2009 15:17:35 GMT

Pivot System Support and Resistance Judgements made about likely market behavior which are based on momentum analysis can be even more productive if we have predetermined levels available which can act as "price templates" in interpreting the day's trading activity. The "Pivot System" is one such approach. Floor traders and other professionals who do the actual buying and selling of futures contracts in the trading pits of the exchanges, generally employ very similar systems for valuing the

Dynamic Support & Resistance Levels for Intraday Trading

RHunt@PatternTrapper.com (Pattern Trapper) — Wed, 23 Dec 2009 15:15:45 GMT

Dynamic Support & Resistance Levels for Intraday Trading As helpful as Pivot System levels often are, a significant drawback to their use lies in the fact that they are calculated from the prior day's price action, and may not accurately reflect recent changes in market psychology. Effective intraday trading also requires a means of identifying support and resistance which can more easily adapt and more accurately represent price activity under rapidly changing market conditions. The 20

Use of Prior Day Highs and Lows

RHunt@PatternTrapper.com (Pattern Trapper) — Mon, 28 Dec 2009 08:30:33 GMT

Use of Prior Day Highs and Lows Each of the intraday trading techniques discussed so far have relied on reference levels arrived at by means of mathematical calculations. The technique discussed in this section, in contrast, will deal with a set of support and resistance levels which are much more intuitively obvious. In short, we will discuss a technique for using the prior day's price extremes as a means of determining market-based valuation levels. If market activity is thought of as an

Combining Japanese Candlesticks with Western Technical Analysis for a High-Probability Forex Trading Combination...

editor@forexjournal.com (The Forex Journal) — Tue, 22 Dec 2009 16:59:24 GMT

This article is taken from the Forex Journal (December 2009 issue). The author, James Chen , CTA, CMT, is Chief Technical Strategist at FX Solutions, a leading Forex broker. He is a registered Commodity Trading Advisor and a Chartered Market Technician, as well as the author of the book, Essentials of Foreign Exchange Trading (John Wiley & Sons, 2009). His newest book, Essentials of Technical Analysis for Financial Markets (John Wiley & Sons) will be released in early 2010. James Chen

Managing your trades with ATR

editor@traders-journal.com (The Trader's Journal) — Tue, 22 Dec 2009 11:49:16 GMT

This article is taken from the Trader's Journal magazine (December 2009 issue) The author, Don Dawson , has been trading the futures markets for 20 years. His perseverance through the ups and downs of trading, openness to experience of others, balanced tolerance for risk and patience to wait for his setups are a few of his strengths as a trader. He obtained his Series 3 license in 1990. Soon afterwards, he registered as a Commodity Trading Advisor with the National Futures Association and

Average True Range

editor@traders-journal.com (The Trader's Journal) — Mon, 14 Dec 2009 15:32:05 GMT

This article is taken from the Trader's Journal magazine (October 2009 issue) The author, Don Dawson , has been trading the futures markets for 20 years. His perseverance through the ups and downs of trading, openness to experience of others, balanced tolerance for risk and patience to wait for his setups are a few of his strengths as a trader. Don obtained his Series 3 license in 1990. Soon afterward, he registered as a Commodity Trading Advisor with the National Futures Association and

Ups and Downs Price-Oscillator Divergences in FX Trading

editor@forexjournal.com (The Forex Journal) — Tue, 24 Nov 2009 16:26:56 GMT

This article is taken from the Forex Journal (October 2009 issue). The author, James Chen , CTA, CMT, is Chief Technical Strategist at FX Solutions, a leading forex broker under the City Index Group. He is a registered Commodity Trading Advisor and a Chartered Market Technician, as well as author of the new book, Essentials of Foreign Exchange Trading (John Wiley & Sons, 2009). Many Forex traders consider divergence to be a complete, self-contained trading signal that can accurately

Trading Broadening Top/Bottom Patterns

editor@traders-journal.com (The Trader's Journal) — Mon, 23 Nov 2009 15:48:57 GMT

This article is taken from the Trader's Journal magazine (September 2009 issue) The author, Suri Duddella , is the author of a new book Trade Chart Patterns Like The Pros. Suri is a private trader and has been trading full time futures and equities markets for the past 14+ years. Broadening top and bottom patterns are considered reversal patterns and usually appear at the major tops/ bottoms. Suri Duddella discusses how to identify and trade these reliable chart patterns.

Video Interview with Kim Cramer Larsson: Which are the most useful tools for patterns and trends?

forex@fxstreet.com (FXstreet.com) — Wed, 11 Nov 2009 17:24:34 GMT

Kim Cramer Larsson, CEO at Financial Trend Analysis, shares with you, in an exclusive interview recorded at the FXstreet.com's International Traders Conference 2009 in Barcelona, tips on how to find top and bottom on candlestick patterns with the use of RSI that could help to confirm these reversal signals.

Video Interview with Markus Heitkoetter: How to determinate the trading conditions in volatile markets

forex@fxstreet.com (FXstreet.com) — Tue, 01 Dec 2009 11:17:32 GMT

Markus Heitkoetter, CEO at Rockwell Trading, comments the best way to determinate trading conditions. He also shares some tips about how to identify what markets are doing and the necessity of incorporating volatility in your trading. Markus gives know his three favorite technical indicators. An exclusive interview with Markus Heitkoetter, recorded during the ITC 2009:

Video Interview with Andrei Pehar: How to improve your Fibonacci reading?

forex@fxstreet.com (FXstreet.com) — Fri, 06 Nov 2009 09:05:01 GMT

Andrei Pehar, Chief Technical Strategies, gave us his key tips to do a better Fibonacci analysis in an exclusive interview recorded at the FXstreet.com's International Traders Conference 2009 in Barcelona. Andrei comments the four essential points in Fibonacci.

Unlocking Volume Analysis

editor@YTEmagazine.com (YourTradingEdge) — Wed, 02 Sep 2009 14:04:54 GMT

This article is taken from the YourTradingEdge magazine (MAY/JUNE 2009 issue) The author, Todd Krueger , is a professional trader, educator and creator of Wyckoff Candle Volume Analysis. He is the founding President of Traders Code, LLC; which provides professional trading tools and education to the retail trader. Todd Krueger explores volume analysis techniques: supercharge your chart-reading skills by combining Wyckoff Volume Analysis with candlestick patterns. In the beginning Most traders

Bollinger band applications in the forex

editor@forexjournal.com (The Forex Journal) — Wed, 26 Aug 2009 15:31:23 GMT

This article is taken from the Forex Journal (July 2009 issue). The author, Alex Douglas , is an Associate Director, Head of Business Development and Market Strategist for City Index Australia. He drew his first chart by hand in 1983 and has twenty years of market experience including roles ranging from futures pit trader to Global Head of Foreign Exchange Technical Analysis. He is on the Board of the International Federation of Technical Analysts (IFTA) and was instrumental in the

Trading with Ichimoku Kinko Hyo

analyst@fxstreet.com (FXstreet.com Independent Analyst Team) — Wed, 29 Jul 2009 09:57:38 GMT

Let’s start by understanding what the name of this indicator means, in order to understand how it is used. The Japanese term “Ichimoku” means “instant view’ or “one glance”, “Kinko” is the equivalent of “equilibrium” or “balance” and “Hyo” means “chart”. So, we can translate the full name “Ichimoku Kinko Hyo” to “Instant view of the balance chart” . This indicator was developed by Goichi Hosoda around 1969, and from that point forward Ichimoku Kinko Hyo has become a permanent feature in

What is a market cycle?

editor@forexjournal.com (The Forex Journal) — Thu, 23 Jul 2009 12:34:02 GMT

This article is taken from the Forex Journal (April 2009 issue). The author, Franco Shao , has rich experience in the industry. As a trader, he has been engaged in the financial markets for over 10 years. Recently, he has been paying more attention to managing his website in addition to Foreign Exchange trading. Franco has written some articles presenting his opinions about the trends, estimation and analysis of the financial markets and Foreign Exchange trading. He is keenly interested in

Why many technical indicators are failing the current market?

editor@forexjournal.com (The Forex Journal) — Thu, 23 Jul 2009 12:36:31 GMT

This article is taken from the Forex Journal (April 2009 issue). The author, Mark Whistler , is a professional trader, author and analyst. His books include The Swing Trader’s Bible (John Wiley & Sons, Inc. 2008), co-authored with Matt McCall, Trading Pairs (Wiley, 2004), Trade with Passion and Purpose (John Wiley & Sons, Inc. 2006), Profit from China (Investment U/Wiley, 2006) and Profit from Uranium (Investment U/Wiley, 2006). Mark’s newest book, Trading Forex Volatility (co-authored

A view from the top and the bottom

editor@traders-journal.com (The Trader's Journal) — Thu, 23 Jul 2009 10:40:53 GMT

This article is taken from the Trader's Journal magazine (April 2009 issue) The author, Don Dawson , is Online Trading Academy Commodity Futures Instructor. Don Dawson shows how to use the double top and double bottom chart pattern in trading. He also describes how to include Bollinger Band analysis to enhance the trading opportunity.

Elliot Wave principle

editor@forexjournal.com (The Forex Journal) — Wed, 22 Jul 2009 09:47:50 GMT

This article is taken from the Forex Journal (March 2009 issue). The author, Franco Shao , is founder of ForexCycle.com, a website that focuses on market trends and data analysis of the financial markets, especially for foreign exchange trading. It was established in year 2005. Franco has rich experience in the industry. As a trader, Franco has been engaged in the financial markets for over 10 years. Recently, he has been paying more attention to his website management and foreign exchange

Pivot Point Analysis

editor@traders-journal.com (The Trader's Journal) — Wed, 22 Jul 2009 10:18:48 GMT

This article is taken from the Trader's Journal magazine (March 2009 issue) The author, Don Dawson , is the Online Trading Academy Commodity Futures Instructor. Today, there literally are hundreds of technical studies. For this reason, some of the more traditional studies are starting to work again. Doug Dawson outlines the benefits of using Pivot Point analysis to trade the markets.

Using Moving Averages as Trend filters

editor@traders-journal.com (The Trader's Journal) — Wed, 22 Jul 2009 09:54:55 GMT

This article is taken from the Trader's Journal magazine (March 2009 issue) The author, Gabe Velazquez , is a professional trader with 14 years of experience. His focus is intra-day and swing trading the TF (Russell 2000 E-Mini) using technical analysis as his primary tool. Gabe has managed stocks and futures accounts and has conducted educational seminars on technical analysis for the past ten years. He is a frequent guest on Biz radio, where he shares his market knowledge and utilization of

Candlesticks and their whole picture

fxquestions@investija.com (Investija.com) — Tue, 16 Jun 2009 15:09:48 GMT

This article has been born with the help of the Investija.com customers and visitors. Popularity of the candlesticks is huge, for that reason an amount of questions about it is understandably big. All the questions have a tendency to clarify which candlestick pattern works most. I decided to write an article about my understanding about candlestick charting and give my view about practical approach to candlestick charting. Japanese candlesticks took a major place in technical analysis and

Practical trade with channels

analyst@fxstreet.com (FXstreet.com Independent Analyst Team) — Fri, 15 May 2009 08:25:50 GMT

A channel is a figure of high reliability, formed by two parallel trend lines at its borders. One connects the price highs, the other the price lows, and in between, there is a zone where the price tends to stay until it breaks. Both trend lines, upper and lower, act as support and resistance. Figure for itself shows the market trend. There are different kinds of channels, but they mostly work the same way. Let’s see a practical example of each one: Horizontal Channel: It can be find either in

Volume Weighted Average Price

mark@wallstreetrockstar.com (WallStreetRockStar.com) — Wed, 16 Sep 2009 14:19:18 GMT

In currency trading, many retail traders can lose fortunes, before ever even hearing about VWAP and TWAP. It's proclaimed 'hi-tech' at home traders can seemingly miss major institutional benchmarks like I have just mentioned. Clearly, the simple fact that so many retail traders have no clue about VWAP, simply proves suc within the hands of those controlling the bulk of the order flow. VWAP (Volume Weighted Average Price is really the average price over an average period of time, weighted for

Moving Averages. Do they work?

editor@traders-journal.com (The Trader's Journal) — Fri, 17 Apr 2009 14:42:41 GMT

This article is taken from the Trader's Journal magazine (February 2009 issue) The author, Subrina Mahmood , is currently working on her MBA in finance at Monmouth University. Moving averages are a popular technical trading tool used to generate buy and sell signals. The question is – do they work? Subrina Mahmood lead a discussion on various moving average crossover strategies using simulated tenyear stock data series. Moving averages are a popular technical trading tool used to generate buy

Trading with moving averages

analyst@fxstreet.com (FXstreet.com Independent Analyst Team) — Fri, 20 Mar 2009 13:15:35 GMT

As many of you already know, Forex is the most amazing and popular electronic financial market: it moves 1.5 trillion dollars a day, what NY Stocks market moves in a year. A 24 hours a day, 7 days a week market, with high volatility and liquidity, and with a plus advantage: leverage. A market where you can choose to go bull or bear with no cost: no extra premiums to pay, no additional options. It seems pretty much convenient, right? Well, let me tell you the disadvantages before I continue:

Trading the trend and breaks

analyst@fxstreet.com (FXstreet.com Independent Analyst Team) — Fri, 20 Mar 2009 13:06:08 GMT

I always post here that we should wait for breaks or confirmations. Breaks of key levels of support and resistance or trend lines. So I will tell you the basic rules to trade with trend lines, I hope you will enjoy these basic education tips! As you may know, we always say that it is better to trade following the trend . This means that in a bullish market we should buy to take profits by selling. Of course we can trade against the trend - in fact I do it all the time - but we must be aware

Leash in Retracements with Arcs

editor@forexjournal.com (The Forex Journal) — Tue, 24 Feb 2009 17:41:40 GMT

This article is taken from the Forex Journal (February 2009 issue). The author, Cornelius Luca , is the writer of Technical Analysis Applications – McGraw-Hill, 2004, Trading in the Global Currency Markets – Penguin Books, Third edition, 2007, Technical Analysis Applications in the Global Currency Markets – Penguin Books, second edition, 2000, and Introduction to Technical Analysis – Euromoney, 1997. He has authored numerous articles in both Stocks & Commodities and Futures. The ability to

Trading Multiple CCI Time Periods

mark@wallstreetrockstar.com (WallStreetRockStar.com) — Wed, 16 Sep 2009 14:23:09 GMT

Within Forex, there’s something professional traders call, “chasing indicators.” Sadly, so many retail traders – with the mindset that trading Forex profitably is easy – fall victim to this destructive attitude and unfortunately, constantly find themselves behind the curve as volatility kicks in. However, there is another way to trade. In this special report, traders will learn why “chasing indicators” is such a losing game, while also seeing how they can begin putting indicators on their side

Perceiving Forex Volatility via Descriptive Statistics… Deriving Trending and Reversals - Part 2

mark@wallstreetrockstar.com (WallStreetRockStar.com) — Wed, 16 Sep 2009 14:26:14 GMT

Even when traders embody substantial technical and fundamental knowledge, risk prevails without the proper understanding of the larger probability/volatility paradigm behind currency trading. Here, traders are encouraged to boldly challenge typical pre-conceived notions of charting, in an effort to see beyond the fallacy of technical analysis. In the end, traders who understand descriptive statistics will find greater clarity and perception of volatility, before it even appears. Words of

Perceiving Forex Volatility through Descriptive Statistics - Part 1

mark@wallstreetrockstar.com (WallStreetRockStar.com) — Wed, 16 Sep 2009 14:25:49 GMT

Forex markets often display significant volatility catching many traders by surprise. However, with a simple understanding of descriptive statistics and moving averages, many could soon find themselves ahead of the curve. Many traders – both new and experienced – often find themselves at a loss attempting to understand why Forex markets tend to experience extended volatility. In simple terms, the reasoning behind extended volatility is that of continued buying, or selling beyond easily

The 123 chart pattern

shellcon@eth.net (FibForex123) — Mon, 22 Dec 2008 16:35:15 GMT

The 123 pattern is a reversal chart pattern which occurs very frequently and has a very high success ratio. 123’s occur at the end of trends and swings, and they are an indication of a change in trend. They can also be found within a trading range, and they take place when the directional momentum of a trend is diminishing... This is the Powerpoint Presentation of the webinar held by Sunil Mangwani about the 1-2-3 chart pattern in late December 08. You can also watch the recording of that

Rediscovering Gann's Law of Vibration

editor@traders-journal.com (The Trader's Journal) — Wed, 22 Oct 2008 15:20:36 GMT

This article is taken from the Trader's Journal magazine (October 2008 issue) The author, James Smithson , is an investor, trader and student of Gann based in London, England. James Smithson discusses the discovery and use of Gann’s ‘Law of Vibration,’ a method for accurately forecasting the trends of the stock and commodities markets William D. Gann (1878 – 1955) was an outstanding technical analyst. He was also a prolific teacher of how to make speculation a profitable profession, writing

Trading Forex with Danielcode support and resistance

editor@traders-journal.com (The Trader's Journal) — Mon, 22 Sep 2008 14:17:07 GMT

This article is taken from the Trader's Journal magazine (September 2008 issue) The author, John Needham, is a Sydney Lawyer and Financial Consultant. He publishes The Danielcode Report and writes occasionally on other markets. He lives with his family in Australia and New Zealand. John Needham continues to explain how the Danielcode provides early notice of support and resistance levels. All forms of analysis work some of the time but none work all of the time so traders are always in search

Trading by the patterns

editor@traders-journal.com (The Trader's Journal) — Mon, 22 Sep 2008 13:41:04 GMT

This article is taken from the Trader's Journal magazine (Aug 2008 issue) The author, Teresa Appleton is the founder and CEO of TradeLogic, LLC. She started trading while pregnant with her first son (Troy) and not only was that a blessing it was the start of a new career. 1997 was the big market boom when you could hear grandmothers talking about trading at the grocery store. Teresa is self-taught and reading for hours to her newborn (trading books of course, not Dr. Seuss) helped to keep her

Support and Resistance: Theory and practice

fxquestions@investija.com (Investija.com) — Thu, 11 Sep 2008 15:32:03 GMT

I am in the forex market just for few years and my experience is not huge, but after some gains and losses I started feel very confident about my trades. In this article I simply would like to share my points of view to the market and I strongly feel that support and resistance lines do not get it's deserved appreciation in the publications. We all know that support and resistance are very important, but still most of the trading methods do not include those lines at all. Drawing tools in the

Trading rules

fxquestions@investija.com (Investija.com) — Thu, 11 Sep 2008 15:38:15 GMT

This is the first of the series of the articles about my technical analysis and trading method. I hope it will be useful for novice traders. First of all we need to find out what we are going to do. We need to analyse market direction and take the decision are we going to sell or buy. To take the decision according direction of the market is easy: if market is going up – we buy; if down – we sell; if sideways – we wait for opportunity to buy or sell, or could enter the market on chart

Tale of the tails

editor@forexjournal.com (The Forex Journal) — Thu, 04 Sep 2008 08:37:37 GMT

This article is taken from the Forex Journal (July 2008 issue). The author, Brandon Wendell, is a member of the Market Technicians Association, the Chartered Financial Analyst Institute, and now holding the Chartered Market Technician Designation, Brandon has appeared as a guest on CNBC Asia’s Cash Flow and conducted special seminars for CNBC staff on technical analysis. He has published articles in The Trader’s Journal Magazine and was interviewed in Share Investor Magazine. Brandon Wendell

Fibonacci Profit Objectives

editor@traders-journal.com (The Trader's Journal) — Thu, 03 Jul 2008 16:02:15 GMT

This article is taken from the Trader's Journal magazine (May 2008 issue) The author, Joe DiNapoli, is a veteran trader with over 40 years of solid market trading experience. He is also a dogged and thorough researcher, an internationally recognized lecturer, and a widely acclaimed author. Joe, a registered C.T.A. for over 15 years, has taught his techniques in the major financial capitals of Europe, Asia, Russia, the Middle East and South Africa as well as in the United States. His articles