FXstreet.com: Education: Technical Analysis

Elliot Wave principle

editor@forexjournal.com (The Forex Journal) — Fri, 10 Jul 2009 14:51:31 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) — Fri, 10 Jul 2009 14:14:55 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) — Fri, 10 Jul 2009 14:18:38 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@forex-trends.com (Forex-Trends.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

mwhistler@cg3.com (TradingMarkets.com) — Wed, 29 Apr 2009 14:38:39 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

mwhistler@cg3.com (TradingMarkets.com) — Mon, 09 Feb 2009 17:48:57 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

mwhistler@cg3.com (TradingMarkets.com) — Thu, 05 Feb 2009 11:51:54 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

mwhistler@cg3.com (TradingMarkets.com) — Thu, 05 Feb 2009 11:45:08 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@forex-trends.com (Forex-Trends.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@forex-trends.com (Forex-Trends.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

Different uses of RSI in forex

shellcon@eth.net (FibForex123) — Wed, 11 Jun 2008 10:53:09 GMT

The Relative Strength Index (RSI) is one of the most widely used technical indicators by traders. The RSI is an oscillator because it is an index whose value tends to swing between an upper limit value and a lower limit value. It is used primarily to help identify overbought or oversold conditions in a particular currency, as it is formulated to fluctuate between 0 and 100, enabling fixed overbought and oversold levels. It does this by confirming changes in momentum which signals an imminent

It's All Relative

editor@forexjournal.com (The Forex Journal) — Tue, 06 May 2008 13:13:35 GMT

This article is taken from the Forex Journal (March 2008 issue). The author, Brandon Wendell, has appeared as a guest on CNBC Asia's Cash Flow and conducted special seminars for CNBC staff on technical analysis of the financial markets. Brandon was also an industry expert speaker at the Asia Traders and Investors Conference 2008. Brandon Wendell provides new ideas on how to interpret an old indicator. Do you know how to successfully interpret and use Welles Wilder s RSI? Learn new

Currency Trading with Ichimoku Kinkou-Hyo

editor@forexjournal.com (The Forex Journal) — Fri, 14 Mar 2008 08:07:59 GMT

This article is taken from the Forex Journal (February 2008 issue). The author is Cornelius Luca, a world–renown author, teacher and authority in foreign exchange who has traded and analyzed currencies since 1983. He currently is a member of the staff at Global Forex Trading, Division of Global Futures & Forex, Ltd., as one of its analysts who provides commentary on the foreign exchange market. Cornelius Luca, author of several trading books, details the Ichimoku technical study and

Releasing the Code to the Schaff Trend Cycle

sales@FX-Strategy.com (FX-Strategy) — Fri, 29 May 2009 10:13:08 GMT

Schaff Trend Cycle (STC) is a popular indicator commonly used to identify or confirm price direction and market turning points. It was created by Doug Schaff and is based on the assumption that currency trends accelerate and decelerate in a cyclical pattern that can reflect the dominant price cycle of any currency in any timeframe. Developed in 1999, the STC is one of the most widely used Forex indicators today. Schaff created the STC “in order to improve upon the MACD and Time Cycle

3 Peaks and a Domed House

editor@traders-journal.com (The Trader's Journal) — Mon, 21 Jan 2008 11:38:03 GMT

This article is taken from the Forex Journal, a special edition by Trader’s Journal magazine in Nov 2007. The author is Larry Pesavento. He is a trading tutor and 40-year veteran of the markets. During hiscareer, he has been a member of the Chicago Mercantile Exchange,supervised Drexel, Burnham, Lambert’s commodity department in LosAngeles, traded on and off the floor and has trained over 800 traders. Larry Pesavento describes a chart pattern introduced by George Lindsay in the 1950s

How to Trade Forex using Fibonacci Price Relationships

editor@traders-journal.com (The Trader's Journal) — Fri, 18 Jan 2008 12:18:11 GMT

This article is taken from the Forex Journal, a special edition by Trader’s Journal magazine in Nov 2007. The author is Carolyn Boroden, a commodity trading advisor and technical analyst specializing in Fibonacci time and price analysis. Her focus is on the “synchronicity” or confluences of both price and time relationships that set up relatively low risk, high probability trading setups. Ms. Boroden has been involved in the trading industry since 1978. Carolyn Boroden shows how to use

A Practical Guide to Technical Indicators; Part 1 'Moving Averages'

analyst@fxstreet.com (FXstreet.com Independent Analyst Team) — Fri, 29 May 2009 10:13:54 GMT

Over the past decades, attempts have been made by traders and researchers aiming to find a reliable method to predict next action of the securities. As a result we have a variety of different fundamental and technical analysis methods and many theories today that really work. For the first pace I want to discuss technical analysis which is very popular these days. Technical analysis is a common method to evaluating securities and determining the next direction of the price through using chart

The Gann Angles

info@tradingeducation.com (TradingEducation.com, LLC) — Wed, 03 Jun 2009 12:39:13 GMT

Gann Angles: Time and Price Analysis W.D. Gann (1878-1955) developed the use of what he called "Geometric Angles", now commonly referred to as Gann Angles, used to determine trend direction and strength, support and resistance, as well as probabilities of price reversal. Gann was fascinated by the relation of time (T) and price (P). Gann drew his angles from all significant price pivot point highs and lows. He used just one pivot point to draw an angle that rose (or fell) at predetermined and

The Close Line Tactic: Pivot Points and Candle Chart Patterns

jperson@nationalfutures.com (National Futures) — Fri, 29 May 2009 10:02:49 GMT

The Close Line Tactic There are many trading methods one can employ to actively trade including various mechanical trading systems and manual trading tactics. The constant changing of market conditions can require system traders to adapt and update the parameters for the trading decisions. I often prefer the hands on visual approach which is more of a manual method while employing mechanical risk management techniques. The visual approach is aided by the use of candle charts. The draw back is

Is there order in the markets?

info@tradingeducators.com (Trading Educators Inc.) — Fri, 29 May 2009 10:04:28 GMT

Are there definable chart formations that form the basic building blocks of price action? Yes, I believe there are, and I am happy to share them with you. I discovered them many years ago, over time and through the use of statistics. Three basic patterns have emerged that can be seen in any time frame on any chart that is capable of showing you the high and low values of prices. I am interested in the interpretation of these patterns as they apply to price movement. I call this discovery “The

Tools & Set-Ups for Trading

forex@fxstreet.com (FXstreet.com) — Thu, 01 Feb 2007 17:25:35 GMT

Summary Trading tools and how to use them (Phil Newton) Fibs Retrace & projections Round numbers Trend linesTrading example of Use of trend line breaks The art of combining technical components (Toni Juste) Trend lines, that magic tool Support & resistances with indicators Trade triggers, stop-loss and limit Bringing it all together - Trading set-ups (Phil Newton) Trend line breaks Asian Break out Fib pullbacks Combining timeframes for intraday execution (Tony Juste) What is considered

High Probability Trading Setups in the Currency Market

forex@fxstreet.com (FXstreet.com) — Mon, 29 Jan 2007 11:44:22 GMT

Using Fibonacci to determinate market goals

info@molfx.com.ar (MolFX - Management) — Fri, 21 Sep 2007 09:26:06 GMT

Part I: Introduction Part II: Fibonacci's applications Part III: Application in the Objective Market Part IV: Model's description Part V: Model's description (cont) Part VI: Final Results and Conclusion

Part VI: Using Fibonacci to determinate market goals

info@molfx.com.ar (MolFX - Management) — Fri, 07 Jul 2006 20:47:43 GMT

Final Results Then, and based on the model developed to prove the original hypothesis, we came to the following results: Pair EUR/USD: Pair USD/CHF: Pair GBP/USD: Pair YEN/USD: If after finishing this job, someone ask me if it is possible to predict the future, mi answer will still be “NO”. I don’t believe that could be, in fact, I don’t believe either we can predict what will happen in the next minutes… Although this seems the opposite of the objective of this work, I personally want to

Part V: Using Fibonacci to determinate market goals

info@molfx.com.ar (MolFX - Management) — Tue, 04 Jul 2006 15:41:30 GMT

Step 2 Afterwards, we move the following fields-data to a new table: minor rally number, start price, end price, duration (in hours), and the distance in basic points or pips. Then, we move the major trend direction to the new table, came up from the application of the Zigzag Oscillator to the major period under study. After the legs of the ZigZag were found (bullish and bearish rallies), we apply the Fibo’s ratios at any leg (“zig” or “zag”) that coincide with the major trend (In this case,

Basics Of Candlesticks

info@fxtsp.com (FXTSP.com) — Fri, 07 Jul 2006 17:44:06 GMT

Where do Candlesticks Come From? In the 1600s, the Japanese developed a method of technical analysis to analyze the price of rice contracts. This technique is called candlestick charting. Candlestick charts are simply a new way of looking at price; they don't involve any calculations. What do Candlesticks Look Like? Candlestick charts are much more visually appealing than a standard two-dimensional bar chart. As in a standard bar chart, there are four elements necessary to construct a

Pivot Points in Forex

info@straightforex.com (StraightForex) — Wed, 28 Jun 2006 09:57:48 GMT

Mapping Your Time Frame It is useful to have a map and be able to see where the price is relative to previous market action. This way we can see how is the sentiment of traders and investors at any given moment, it also gives us a general idea of where the market is heading during the day. This information can help us decide which way to trade. Pivot points, a technique developed by floor traders, help us see where the price is relative to previous market action. As a definition, a pivot point

Part IV: Model's description

info@molfx.com.ar (MolFX - Management)

Firstly, I whish to remark that the different Technical tools named in this work, were used to make diagnostics about the probable price behavior, find the triggers (sell price and buy price), and to calculate the stop loss, and the price target, every day since more than a year. Well now, to develop this work as objective as possible, and get rid of all subjective coming from trader criteria, in order to apply the concepts developed above, we use a simple Microsoft Excel model, where we try

Part III: Application in the Objective Market

info@molfx.com.ar (MolFX - Management) — Wed, 14 Jun 2006 12:28:41 GMT

Definition of the sample Once chosen the objective market, the study was focused in 4 (four) currency pairs, in the Forex International Market. In order to make it as objective as possible, the study was based in those pairs with higher volume trade in the Forex market, because they accumulate the 85% of the daily transactions. Pair EUR (Euro)/USD (United States Dollars) Since it’s apparition in December 1999, the Eur, soon replace the German Mark, and becomes the second currency in the world,