How the Elliot Wave Theory Applies in Forex Trading
Forex Technical Analysis | Written by Zahir S
Elliot Wave Theory was invented by Ralph Nelson Elliot in the 1920s, it is a method of projecting trends in the stock market. It uses fractal mathematics on fluctuations in the market to make projections that are based on the sentiments of the public.
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The Brilliance of the On-Balance Volume Indicator in Forex
Forex Technical Analysis | Written by Zahir S
“Smart money” is sometimes heard in different discussions regarding the On-Balance Volume. According to a number of momentum traders, by using it to analyze technical charts, foreign exchange trading becomes a notch simpler.
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Understanding Swing trading with Fibonacci Grid
Forex Technical Analysis | Written by Zahir S
Traders indulge into various kinds of trading: positional trading, intraday-day trading, scalping, swing trading, etc. Where positional trading is of longer duration, the rest of them are of shorter duration ranging from a day to just a couple of minutes to take the required profits.
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Learning How to Exit Forex Trades Properly
Forex Technical Analysis | Written by Matt Russell
For newer currency traders, the main focus should be entry points. The exit should be determined by your risk to reward. For example, if we are risking 100 pips on the trade, we should look to take profits when we are up 200 pips in the trade.
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Discretionary Trading vs. System Trading/Part II
Forex Technical Analysis | Written by Thomas Long
As one of the FX Power Course instructors, I get to talk to new and experienced traders on a daily basis. Many times these traders talk about trading systems they wrote themselves that worked for awhile and then mysteriously stopped working.
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Forex Stop Loss? I Don't Want To Use It
Forex Technical Analysis | Written by S.A Ghafari
Last week I was reviewing a website which has a trading signal program for those investors who prefer to not being involved in confusing market analysis and I respect them because such services normally will bring them more time to do other important things in their daily life.
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How To Use Relative Strength Index (RSI)
Forex Technical Analysis | Written by Thomas Long
The Relative Strength Index or RSI was developed by J. Welles Wilder in 1978. It has since become an extremely useful and popular momentum oscillator.
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What is the Average Directional Index (ADX) Indicator?
Forex Technical Analysis | Written by Thomas Long
You see that the EUR/USD was moving up strongly, so you bought this pair on the last pullback. But now after another move up, the pair has pulled off of the highs and is moving down and you wonder if there is a way to measure the strength of the move so you could have exited earlier to protect more of your profits.
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Trading the Nonfarm Payrolls
Forex Technical Analysis | Written by Thomas Long
The NFP report can result in increased volatility and a chance to profit handsomely in a short period of time. However, more often than not, new currency traders are not the one’s profiting but rather losing.
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Interest Rates and Trends
Forex Technical Analysis | Written by Thomas Long
A look at the daily chart of the EUR/USD with one year of trading shows something that we haven’t seen in this pair recently. This chart shows that the currency pair is in a range bound environment.
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Creative with Support and Resistance
Forex Technical Analysis | Written by Adam Rosen
When the basic applications of technical indicator fail to explain the current market climate, we can experiment with a new and fresh look at the charts. The following (1-hour) chart shows a steady downtrend, with its expected support and resistance levels.
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Bollinger Band Width And Trading Ranges
Forex Technical Analysis | Written by Thomas Long
The market enjoys two basic trading conditions which tend to repeat on a very regular basis; range bound and trending states.
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The Importance of Fibonacci levels in Trading
Forex Technical Analysis | Written by Moshe Shalom
If there is one thing in the whole technical analysis panoply of tools, we would choose the Fibonacci retracement percentages ladder. It is not the place to enter into the theory behind these numbers but it is always amazing how well their use will help the trader-investor in his efforts to understand the markets gyrations.
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Simple Moving Averages(SMA) versus Exponential Moving Averages(EMA)
Forex Technical Analysis | Written by Thomas Long
Which moving average is better, the Simple Moving Average (SMA) or the Exponential Moving Average (EMA)? This is the type of question I get every week from new traders who have found all of these new tools at their disposal and start the process of finding the best ones.
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Moving Average Crossovers
Forex Technical Analysis | Written by Thomas Long
Many forex traders who have tried using moving average crossovers to time their entry into a trade have probably found them to have limited value as they have a tendency to signal an entry late in the move.
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Do Hammer and Shooting Star Candlestick Formations Work in Forex?
Forex Technical Analysis | Written by David Rodriguez
Some of the most popular trading strategies in forex markets involve the use of Japanese Candlestick charts. Given a specific pattern in candlestick formations, traders look to buy and sell currencies in anticipation of reversal or continuations in price. Yet testing the profitability of such concepts is easier said than done.
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End of Year Trend Changes in Forex
Forex Technical Analysis | Written by Thomas Long
Since my interest in trading started in the futures markets, I was exposed to the value of using a calendar in my trading decisions. I am not referring to an economic calendar where the news releases can influence market activity, but rather buying and selling certain futures contracts based on the month of the year.
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Know Your Indicators -DMI/ADX
Forex Technical Analysis | Written by Sunil Mangwani
Most strategies or techniques in technical analysis involve the use of indicators. But more often than not, most traders use indicators for all kinds of situations which tend to render them quite ineffective.
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How Profitable Are Candlestick Strategies in Currency Trading?
Forex Technical Analysis | Written by David Rodríguez
Some of the most popular trading strategies in forex markets involve the use of Japanese Candlestick charts. Given a specific pattern in candlestick formations, traders look to buy and sell currencies in anticipation of reversal or continuations in price.
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FX-Market Directional Channels
Forex Technical Analysis | Written by Adam Rosen
The FX-market will normally oscillate between range bound and trending conditions a few times throughout the year. We may see the market spend a relatively low or high amount of time in either market condition, depending on the fundamental picture and economic climate of each currency within the pair.
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Buy the Strongest Currency, Sell the Weakest
Forex Technical Analysis | Written by Thomas Long
One of the best technical tools we can use in our analysis is the status other currency pairs. If you are of the opinion that because of fundamental reasons the US Dollar will weaken, your next step would be to find the currency pair that gives you the best chance for a profitable trade.
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EUR/USD, GBP/USD and USD/CHF Calendar Trading Patterns
Forex Technical Analysis | Written by John Forman
Technical analysis can be thought of as the observation of fundamental forces playing themselves out in terms of price action. For the most part, this is done by reviewing chart patterns and/or indicators in an effort to glean forward expectations based on past behavior.
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Stop Placement with Average True Range (ATR)
Forex Technical Analysis | Written by Thomas Long
When working with new traders in the FX Power Course, we try to impress on them the importance of using a protective stop in every trade. Identifying and limiting your risk are keys to long term success.
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Using Relative Strength to Trigger a Trade
Forex Technical Analysis | Written by John Jagerson
As forex traders we spend a lot of time analyzing yields from the perspective of the primary central bank rates. However, I think a lot of traders are neglecting a source of daily information about yields.
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What Do They Mean by Overbought and Oversold?
Forex Technical Analysis | Written by Thomas Long
Many times in trading we here the terms overbought and oversold. We hear an analyst state that the EUR/USD is overbought and due for a correction or that the USD/AUD is oversold and due for a bounce.
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Fast Stochastics or Slow Stochastics?
Forex Technical Analysis | Written by Thomas Long
One of the technical indicators we teach in the FX Power Course is the Stochastic Oscillator. Developed by George C. Lane in the late 1950s, the Stochastic Oscillator is a momentum indicator that shows the location of the current close relative to the high/low range over a certain number of periods.
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Finding the Right Currency Pair to Trade, Part3
Forex Technical Analysis | Written by Thomas Long
The last two weeks we talked about identifying a trade as a two step process. The first step is to determine the direction of the trend on the daily chart and then to move down to an intraday chart (second step), like the hourly or 4-hour, to pinpoint our entry and exit.
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Finding the Right Currency Pair to Trade, Part2
Forex Technical Analysis | Written by Thomas Long
Last week we talked about identifying a trade as a two step process. The first step is to determine the direction of the trend on the daily chart and then to move down to an intraday chart, like the hourly or 4-hour, to pinpoint our entry and exit.
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Finding the Right Currency Pair to Trade
Forex Technical Analysis | Written by Thomas Long
One of the things we try to impress upon students taking one of the FXCM Power Courses is that identifying a trade is a multiple step process. Too many new traders pull up an hourly chart plotted with a variety of technical indicators in an attempt to find a trade.
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Bollinger Bands and Breaks
Forex Technical Analysis | Written by Adam Rosen
The forex market follows a steady cycle of oscillating between a range bound and trending environment, on a long and short term basis.
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What is MACD Divergence?
Forex Technical Analysis | Written by Thomas Long
In my opinion, one of the strongest signals generated by technical indicators is MACD divergence on a daily chart. MACD stands for Moving Average Convergence/Divergence and can be quite useful for giving hints of a possible market reversal.
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The Use of Moving Averages
Forex Technical Analysis | Written by Thomas Long
Moving Averages may be the most popular technical indicator because they are easy to understand. After all, a 10-day Simple Moving Average is calculated by just taking the closing prices of the last 10 days, adding them together and dividing by 10.
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Why is Elliott Wave so Useful?
Forex Technical Analysis | Written by Ian Copsey
The first time I came into contact with Elliott Wave was in my first seminar on technical analysis by a U.K. analyst. After the two day introductory course to analysis I returned to my trading room full of enthusiasm, armed with all the patterns and techniques this guru had imparted upon the fledgling analysts, ready to take the market by storm.
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ATR (Average True Range): Reading Forex Volatility
Forex Technical Analysis | Written by Adam Rosen
As buyers and sellers pass through the marketplace throughout the course of a trading session, the price charts will simply reflect the behavior of the two opposing forces, and their varying waves of strength and weakness.
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Pivot Point Forex Trading
Forex Technical Analysis | Written by Mark McRae
You are going to love this lesson. Using pivot points as a trading strategy has been around for a long time and was originally used by floor traders. This was a nice simple way for floor traders to have some idea of where the market was heading during the course of the day with only a few simple calculations.
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The Most Popular Indicators Used in Forex
Forex Technical Analysis | Written by Refco
The MACD is one of the most popular oscillator used by currency traders. This is a momentum indicator can be used to confirm trends, while also indicating reversals, or overbought/oversold conditions.
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Market Turns in Forex
Forex Technical Analysis | Written by Adam Rosen
It may be quite difficult at times to spot a market reversal as it occurs, due to the fact that market trends may pause many times in it’s climb to the upside / downside.
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BB-Width Indicator and Breakouts
Forex Technical Analysis | Written by Adam Rosen
The following 1-Hour chart shows the CADJPY in the midst of a long term trend to the upside. Below this chart the BB-Width indicator is plotted, which reflects the market’s current state of volatility.
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How to Catch Simple Moves in Forex
Forex Technical Analysis | Written by Sunil Mangwani
Keep things simple, do not over complicate things by following too many indicators, decide on a trade plan….and follow it diligently, with no exceptions. If the market does not give you the setup (as per your trade plan), take a break, go golfing, go swimming.
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Forex Trading With Complimentary Indicators
Forex Technical Analysis | Written by Adam Rosen
Traders have many different technical indicators to choose from when analyzing the FX market. This virtual cornucopia of options can sometimes be unsettling to some traders but does not need to be.
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Trend trading is as easy as A,B,C....or is it 1,2,3?
Forex Technical Analysis | Written by Adam Rosen
The first step in identifying a trading opportunity is to start with the daily chart to get a feel for the mood of the market. Is the market range bound and bouncing between two general areas or is it trending? This first step leads to what approach should be used when opening a trade.
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Finding the Correct Moving Average
Forex Technical Analysis | Written by Adam Rosen
When the market establishes a trend in a particular direction, often times this trend may continue higher at a certain angle which simply reflects the strength of the buying forces over a given period of time.
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Forex Forecasting Is Not For Prophets
Forex Technical Analysis | Written by Louizos Alexander Louizos
How many times have you entered market and got your stop loss hit? And how many times have you hesitated to enter market only to be disappointed afterwards?
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Fibonacci Trading. Key To Forex Profits
Forex Technical Analysis | Written by Louizos Alexander Louizos
If you have at least a few months that Forex came into your life you have surely heard of Fibonacci levels in Forex charts. But what is Fibonacci? Fibonacci sequence is a series of numbers. Every number is being produced by adding the last Fibonacci number to the previous.
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Forex Technical analysis software
Forex Technical Analysis | Written by Wikipedia
When selecting a technical analysis software package, consider where and when you are going to use it, what type of data feed you require, and the type of technical analysis indicators that you like to use. Currency traders typically need forex charting software only and provided for free through their preferred forex broker.
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