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.
Most traders just focus and use technical analysis (TA) to make trade decisions, but they forget that trading is connected with value. The perceived value of an asset is what makes the market move up and down. And the perception of that value by the market is directly related to the fundamental information available.
The analysis and forecast process of any financial asset can support the decision process to take any positioning on the market. However, the time dedicated to developing it could increase the cost of the trade as this grows on time. In this educational article, we will review how to analyze and make a forecast by applying the main concepts of the Elliott Wave Principle.
After our discussion about short-bodied candlestick in our article
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.
This article is to be dedicated to single candlestick key figures. The majority of patterns are created by more than one candle, but some particular candlestick shapes are key figures to gauge the market sentiment and spot reversals.
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.
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.
The H4-H1 combination is one of the best combinations to trade for intraday traders. The H4 chart is the most consistent intraday chart in the Forex market. The H1 chart integration with the H4 chart offers many reliable entries. However, it is often seen that the H4 chart doest its part, but the signal never comes on the H1 chart. In today’s lesson, we are going to demonstrate an example of an H4-H1 chart combination, which is about to give us entry, but it ends up not producing a trading signal. Let us find out how the story goes.
Introduction In our previous article, we addressed the concept of position sizing, drawdown, and techniques. Now we extend this discussion and look at other crucial aspects of position sizing, which
Exchange-Traded Funds, or better known as ETFs, are investment instruments that are traded in a centralized market. In this educational article, we will see how we can use them to
Patience is one of the most essential components of Forex traders. Traders are to keep patience in every single second. Before triggering an entry, a trader is to find out
The triangle is one of the three basic corrective patterns along with the Flat structure, with more variations within Elliott’s Wave Theory. In this educational article, we will review the
A losing trade hurts. Beginners find it tough to encounter losing trades. However, in the Forex market, losing is inevitable. The market is so action-packed that even an experienced trader
In our article "Impulsive Waves Construction - Part 1," we introduced the concept of "alternation." In this educational article, we'll apply this concept to the Dollar Index Analysis. The
Introduction The Risk to Reward Ratio is one of the most critical aspects of risk management in Forex trading. Traders with a clear understanding of what RRR is can improve
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
I've already stated my view that most wannabe traders put their focus in technical analysis of the market and on trading signals, mostly provided by others, hopefully, more knowledgeable than
Harmonic Pattern – Walkthrough [caption id="attachment_48985" align="aligncenter" width="3682"] Bearish Butterfly Pattern against 180-degree Square of 9 angle.[/caption] The chart above is the AUDJPY Forex pair on its 6-hour
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
In our previous article, we introduced the concept of "fast market." Also, we commented about the importance of watching the big-picture to support the market's general overview. In this educational
In today’s lesson, we are going to demonstrate an example of a failed entry. We usually explain winning trade setups in our lessons. It teaches us how to win a
Forex market is appealing to the traders. It operates 24/5, and it is the most liquidate financial market. It offers numerous trading opportunities to traders of all sorts. Since it
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 speed is a characteristic of nature; in the same way, some markets tend to be faster than others. The problem arises when a market moves sharply. In this educational
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
The Three Principles – Price Principle This will be the shortest article over the three principles, mainly because it is the same as many other Western styles of price projection.
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.
The Two Clouds Discovery In Manesh Patel’s book, Trading with Ichimoku Cloud – The Essential Guide to Ichimoku Kinko Hyo Technical Analysis, he made a fantastic discovery. When I first
The flat pattern is a corrective formation that runs in a 3-3-5 sequence. Also, compared with other Elliott wave patterns, it has the most extensive variations. In this educational article
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
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.
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
Ichimoku Kinko Hyo Ichimoku is not an indicator (many platforms incorrectly label it an indicator) – it is a trading system. Ichimoku Kinko Hyo is, in my opinion, the
The Relative Strength Index (RSI) indicator was developed in 1978 by J. Welles Wilder. the RSI is a Momentum indicator that measures the change of the price movement. In this
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
Harmonic Pattern Example: Bearish 5-0 Harmonic Pattern The 5-0 Harmonic Pattern Like the Shark Pattern, the 5-0 pattern is a relatively new pattern discovered by the great Scott Carney. Carney
Harmonic Pattern Example: Bearish Deep Crab The Deep Crab Pattern The Deep Crab is a variant of the regular Crab pattern. It is still a 5-point extension, and it still
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
Price action traders are to get clues from what the price has been doing. Horizontal Support/ Resistance, Trend Line Support/Resistance, Fibonacci Levels, Equidistant Channel along with Candlestick Pattern are price
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
The Crab Pattern The crab pattern is another of Carney’s harmonic patterns and one of the first that he discovered. The essential condition of this pattern is the
Forex trading is a hard business. A trader has to work hard to learn the algorithm of it as well as psychologically strong enough to apply them when it comes
Intermarket Analysis studies the correlation or relationship between different markets or assets. In this educational article, we will review how to apply the correlation analysis within the Elliott Wave Principle.
Harmonic Pattern Example: Alternate Bat Bullish The Alternate Bat Pattern The Alternate Bat Pattern is another pattern by Scott M. Carney. This pattern comes from his second Volume Two in
Harmonic Pattern Example: Bearish Bat The Bat Pattern The Bat Pattern is another harmonic pattern that was not identified by Gartley, but instead by the great Scott M. Carney -
How to determine Dependency in your Trading System As we have explained in our previous article How to be sure your trading strategy is a winner, traders usually apply position
Recently, we ended the series that presents the basic concepts of the Elliott Wave Theory. In this guideline, we disclose the contents developed. Fundamentals of Elliott Wave Theory. Divided into
Equidistant Channel is a very reliable trading tool for the price action traders. In an ascending Equidistant Channel, the buyers wait for the price to come at the support level
The Elliott wave principle has its origin in the early 1930's decade. The introduction of the wave concept was published in 1934 by R.N. Elliott in his work "The Wave
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