Educational Themes of Intermediate and Advanced Complexity. In this section, we include all that is needed to master technical analysis such as complete coverage of price action themes: Support-resistance, volume, volatility, breakouts, reversals, trend and range trading, candlestick and chart patterns and formations, Elliott wave and Fibonacci retracements and extensions, and harmonic patterns. It includes also a section covering all indicators from simple moving averages to the complexity of Ehlels Filters. Another sub-section is dedicated to trading systems desing.
If you are new to forex trading, chart patterns are likely to attract your attention quickly because the trader community is full of praises...
The Head And Shoulders Pattern
Chartist analysis in forex consists of identifying figures on the price chart, these are usually repeated historically so you can practice in their identification, also they are usually formed in different financial instruments and periods of time, and through them, it is possible to predict with some reliability where the next price movement will follow. It is perhaps the most classic form of analysis in Forex and surely one of the most effective, so your knowledge is always very advisable.
The Ideal Ichimoku Strategy is the first strategy in my series over Ichimoku Kinko Hyo. There are two sides to a trade, and so there will be two different setups
Ichimoku Kinko Hyo Guide – A walk through a trade. I want to preface this guide with a screenshot of my account. [caption id="attachment_48804" align="aligncenter" width="1920"] Trade History[/caption] The
The zigzag pattern is a three-wave structure that has a limited number of variations. In this educational post, we'll present how to analyze the zigzag pattern under an intermediate level perspective,
The Three Principles – Timespan Principle In another correlation to Western analysis, Hosada’s Ichimoku Kinko Hyo system has a timing component within the system. The numbering system used in Ichimoku
A man named Hidenobu Sasaki brought Hosada’s Ichimoku system and the three principles to contemporary times. He worked for Citigroup in Japan when he published his 1996 book, Ichimoku Studies.
In the previous article, we expanded the ideas of the triangle pattern; in particular, we talked about the contracting triangle and its variations. In this last part dedicated to the triangle pattern, we will review the non-limiting triangle.
The Kijun-Sen Crossover (Crossunder) Strategy is the second in my series over Ichimoku Kinko Hyo. There are two trades setups provided for the long and short side of a market.
After our discussion about short-bodied candlestick in our article
Is it possible to simplify the wave analysis and compare it with classic chartist patterns? Identifying Elliott Wave patterns can seem confusing, especially if you are looking to differentiate between a flat or a zigzag pattern. In this educational article, we will look at some of Elliott’s patterns and compare them to traditional chartist figures.
As any forex trader worth their salt knows, there are a bewildering number of indicators out there to choose from – which is why...
Introduction The Fibonacci tool was developed by Leonardo Pisano, who was born in 1175 AD in Italy. Pisano was one of the greatest mathematicians of the middle ages. He brought
Fibonacci Confluence Zones
In our previous article, we discussed how we could simplify the zigzag and flat pattern by the chartist figure known as a flag. In this educational article, we will see how triangles can be used in wave analysis.
In our previous article, we saw that the triangle pattern is the most common of the three standard formations defined by R.N. Elliott. In this educational post, we will review the different types of variations of this corrective structure.
The Cypher Pattern The Cypher Pattern is another type of Harmonic Pattern - except it isn't - but it is. This is one of the few patterns not identified by
Forex indicators use mathematical calculations to measure things like volume, exchange rates, open interest, etc. about a currency pair to let traders know if...
The Financial markets are an exciting place for many people, attracted by dreams of infinite wealth. However, these markets are one of the most complicated environments on earth. The fact that millions of people exchange assets in financial markets makes them very difficult to predict, as each of the participants has its own vision, interests, and objectives.
Have you ever considered how to use volatility in your trading? How to apply some filters according to their behavior? The ATR indicator can...
Moving averages identify trends when filtering price fluctuations. Under this idea, Gerald Appel, an analyst and portfolio manager from New York, developed a more...
Staying positive can be difficult, especially when things are no longer going your way, and when trading in the markets, there are countless things...
The Ichimoku Kinko Hyo System When I use the Ichimoku Kinko System in my trading, I can look at a chart and immediately know whether a trade can be taken
Harmonic Pattern Example: Bearish Shark The Shark Pattern The Shark Pattern is the newest harmonic pattern from Carney’s work (2016). He revealed this pattern in his third book in
You’re still using Fibonacci retracements incorrectly Like any discipline or field of study, Technical Analysis goes through changes. Old theories and approaches are rigorously utilized...
[caption id="attachment_57083" align="aligncenter" width="3338"] Ascending Triangle[/caption]
In the financial market, there is a saying, “Trend is your friend.” When the price makes a strong move towards a direction breaching a significant level of support/resistance, traders start
What’s this about trading robots? Do they work? Are robots bad? Many questions are those that usually roll in the head when you hear...
Of all the chart styles and trading styles I’ve used in my years of trading, Point & Figure is by far the least stressful and most profitable I’ve ever used. Point & Figure, for a trader, I believe, is the most stress-free form of charting available.
One of the most challenging and time-consuming aspects is trying to find out what your trading style is and the time period that best...
The Morning Star and the Evening Star
The most common term people associate with retracements in price that retest prior areas of support or resistance is a pullback. There is another...
As promised, in this article, we will go through the steps to create a custom strategy, from the initial idea to the implementation of signals, stops, and targets.
Indicators are a useful tool that can aid in supporting the analysis process. In this educational article, we will review the Awesome Oscillator and how it can help us in
Flags and Pennants If you’ve ever traded a chart and you’ve seen what looks like a reversal in the trend, but as soon as you...
Leonardo da Pisa developed the Fibonacci sequence in the thirteen century. The series starts like this: 1-1-2-3-5-8, and so on. Elliott, in his work "Nature's Law," said Fibonacci provides
Arrow indicators are a set of tools for the "lazy" traders. On Forex charts, possible market entry points are indicated with arrows, green means...
So far, the reversal formations we saw - the Piercing Pattern, the Dark Cloud Cover, and the Engulfing patterns, were strong reversal signals, showing that the bulls or bears had the control. The Harami is usually a less powerful signal.
Harmonic Patterns – Start Here Harmonic Patterns are an advanced form of analysis and require more than a basic understanding of the technical analysis of financial markets. For those of
What is like to be a professional forex trader? Not long ago, we had an interview with a high-profile forex trader named Arnold, he was speaking about the motives and transitions he was going through, why he became a trader and how that decision affected his life. When we asked him how he discovered forex, he said that in his mid-twenties he worked as an assistant manager at Abercrombie & Fitch store in London, drinking around with his lads, and always struggling to support his living. One day on his way back home, he was in the metro sitting next to the nifty guy and noticed him playing some strange video game on his mobile phone. He was curious so he politely asked a guy about the game.