Wed, 15 Nov 2006 07:55:28 MST
|
Written by Nick Buzby
Pivot points have proven themselves to be effective in currency trading, they are short term trend indicators used by day traders as a predictive tool to forecast the current day's support and resistance levels based on the previous day’s high, low and close levels (at 5 PM NY time). The pivot point itself is the main support/resistance level what means that the most significant price movement is expected to occur at the pivot point itself. Support levels S1, S2, S3 and Resistance levels R1, R2, R3 are less influential. Pivot points are valid for one trading day and need to be recalculated based on prices at 5PM NY time (EST), they enable forex day traders to quickly calculate currency levels that are likely to cause price movement.
Tue, 07 Nov 2006 17:32:37 MST
|
Written by Toby Smith
Bearish Harami:
Pattern: Consists of two candlesticks: A very large white body followed by a small black body that is contained within the previous bar. Interpretation: A bearish pattern when preceded by an up trend.
Tue, 07 Nov 2006 06:17:03 MST
|
Written by Toby Smith
Bullish Continuation:
Pattern: A long white body followed by several small body's and ending in another long white body. The small body's are usually contained within the first white body's range.
Interpretation: A strong bullish continuation pattern.
Mon, 06 Nov 2006 05:31:03 MST
|
Written by Toby Smith
Bearish Continuation:
Pattern: A long black body followed by several small body's and ending in another long black body. The small body's are usually contained within the first black body's range.
Interpretation: A strong bearish continuation pattern.
Sun, 05 Nov 2006 15:12:23 MST
|
Written by Bert De Graaf
Candlestick Charts and Patterns are very popular among currency traders because they are much more visually appealing than a simple LINE or BAR chart.
History
In the 1600s, the Japanese rice trader, Munehisa Honma developed a method of technical analysis to analyze and predict the future price of rice contracts. This technique is called Candlestick Charting that first appeared after 1850. Candlestick charts are simply a new way of looking at price; they don't involve any calculations.
Fri, 20 Oct 2006 06:51:04 MDT
|
Written by Aboutcurrency
Triple Top formations are reversal patterns with bearisch bias, this pattern is not often seen in the forex market (also note Triple Bottoms, Double Bottoms and Double Tops). Triple Tops are identified by three consecutive highs of similar (or almost) height with 2 moderate pull backs in between (neckline).
The triple top can be a major reversal pattern (if found on a daily chart or bigger timeframe) that can be formed after an extended uptrend. This pattern is confirmed when the currency pair price breaks from (it's top bottom) above through the neckline, the most likely price direction is now DOWN.
Fri, 20 Oct 2006 06:47:19 MDT
|
Written by Aboutcurrency
Triple Bottom formations are reversal patterns with bullish bias, this pattern is not often seen in the forex market (also note Triple Tops, Double Bottoms and Double Tops). Triple Bottoms are identified by three consecutive lows of similar (or almost) height with 2 moderate pull backs up in between (neckline peaks).
The triple bottom can be a major reversal pattern (if found on a daily chart or bigger timeframe) that can be formed after an extended downtrend. This pattern is confirmed when the currency pair price breaks from (it's third bottom) below through the neckline, the most likely price direction is now UP.
Sat, 14 Oct 2006 15:05:41 MDT
|
Written by Tom Smith
The Head and Shoulders Bottom marks a "reversal" pattern in a downtrend market and is popular among currency traders. The pattern contains 2 Shoulders, 1 Head and the Neckline (resistance).
The first point - the left shoulder - occurs as the price of the currency pair in a falling market hits a low and then rise back to the neckline.
The second point - the head - happens when prices fall to an even lower low and then rise back again to the neckline. The third point - the right shoulder - occurs when prices fall again but don't hit the low of the head. A key element of the pattern is the neckline. The neckline can be horizontal, slope up or slope down and is formed by drawing a line connecting two high price points of the formation.
Courses & Tutorials. More to come..stay tuned and visit often!
