Technical Analysis 101
19 hours agoTo kick off your journey into technical analysis, let's start with the fundamentals: support and resistance!
What is Support and Resistance?
We’ll begin with the foundational concept of price action analysis and how to start marking them on your charts.
Trend Lines
The simplest yet most effective charting tool in your toolkit.
Trend Channels
Now that you grasp trendlines, let’s delve deeper into channels to uncover opportunities within trends.
How to Trade Support and Resistance
It’s time to learn how to trade these lines using two straightforward concepts: the Bounce and the Break!
Psychological Levels
Discover these “invisible lines” that can serve as support or resistance levels because many traders are monitoring them.
Summary: Trading Support and Resistance
A brief overview of support and resistance zones, along with tips on identifying potential trading opportunities with them.
Thanks to Mr. Steve Nison for "uncovering" the art of candlesticks!
What is a Japanese Candlestick?
Understand why analyzing Japanese candlestick charts is a favored aspect of technical analysis.
Japanese Candlestick Anatomy
Just like humans, candlesticks come in various body sizes. As forex traders, it’s crucial to recognize the type of body a candlestick has!
Basic Japanese Candlestick Patterns
What do spinning tops, marubozus, and dojis share in common? They are all fundamental types of candlesticks!
Single Candlestick Patterns
What distinguishes a hammer from a hanging man? It’s time to learn about your essential candlestick patterns!
Dual Candlestick Patterns
They say trouble comes in pairs. Read on to discover how dual candlestick patterns may not necessarily mean double trouble for your account.
Triple Candlestick Patterns
In the forex market, three’s not always a crowd—especially when discussing morning stars, black crows, and three inside up patterns.
Japanese Candlestick Cheat Sheet
Think you’re ready to identify basic candlestick patterns with your eyes closed? If not, don’t worry! Here’s a handy candlestick pattern cheat sheet just for you.
Candlesticks with Support and Resistance
Learn how to trade candlesticks in conjunction with support and resistance levels.
Common Mistakes That New Traders Make With Japanese Candlesticks
Here are five common errors that new traders often make when utilizing Japanese candlesticks.
Summary: Japanese Candlesticks
Here’s a summary of the key points to remember about Japanese candlestick patterns.
Considering trading in a trending market? Try incorporating moving averages!
What Are Moving Averages?
A moving average is simply a method to smooth out price action over time. Here’s what it looks like.
Simple Moving Average (SMA) Explained
These are calculated by summing the last “X” period’s closing prices and then dividing by X. Confused? Don’t worry, we’ll clarify it for you.
Exponential Moving Average (EMA) Explained
Think an SMA is too straightforward for you? Give EMAs a try!
Simple vs. Exponential Moving Averages
What sets an SMA apart from an EMA? It’s quite simple, actually.
How to Use Moving Averages to Find the Trend
One effective way to utilize moving averages is to identify trends. And that’s just the beginning!
How to Use Moving Average Crossovers to Enter Trades
If MA lines cross each other, it may indicate that a trend change is imminent.
How to Use Moving Averages as Dynamic Support and Resistance Levels
Another application of moving averages is using them as unconventional support and resistance levels. Here’s how:
How to Use Moving Average Envelopes
Learn how to apply moving average envelopes (MAE) to help confirm trends or identify overbought and oversold conditions.
How to Analyze Trends With Moving Average Ribbons
What’s a moving average ribbon? Discover how to easily spot bullish or bearish trends using moving average ribbons.
How to Trend Trade with Guppy Multiple Moving Average (GMMA)
The Guppy Multiple Moving Average (GMMA) indicator offers a unique trading strategy using moving average ribbons.
Summary: Using Moving Averages
You may forget your name, but never forget the fundamentals of moving averages!
Trading is akin to constructing a house—you need the right tools for the job. So let’s add more tools to our toolbox!
How to Use Bollinger Bands
What better way to start enhancing your trading toolbox than by learning about Bollinger Bands!
How to Use BBTrend
Discover how to utilize BBTrend, an advanced Bollinger Bands indicator developed by John Bollinger, to identify market trends.
How to Use Keltner Channels
The Keltner Channel is a moving average band indicator whose upper and lower bands adjust to volatility changes. Learn how the Keltner Channel provides overbought and oversold readings and signals potential price breakouts.
How to Use the MACD Indicator
The MACD is employed to identify moving averages that signal a new trend. With a MACD, it’s all about three key numbers.
How to Use Parabolic SAR
In trending markets, it’s equally crucial to recognize when a trend is concluding. The parabolic SAR might be just what you need!
How to Use the Stochastic Indicator
Learn how traders utilize the Stochastic indicator to help determine where a trend might be concluding.
How to Use RSI (Relative Strength Index)
If you find Stochastic isn’t your preference, you might want to explore the classic RSI.
How to Use Williams %R (Williams Percent Range)
The Williams %R, or simply “%R”, is a momentum indicator that fluctuates between 0 and -100, offering insights into the strength or weakness of a currency pair. %R serves as an overbought and oversold technical indicator that may provide potential buy and sell signals.
How to Use ADX (Average Directional Index)
ADX is typically used to determine whether the market is ranging or initiating a new trend. Here’s how traders generally interpret ADX signals:
Ichimoku Kinko Hyo
No, “Ichimoku Kinko Hyo” doesn’t mean “May the pips be with you,” but it can certainly help you capture those pips!
Trading with Multiple Chart Indicators
Now that you understand how some of the most common chart indicators function, you’re ready to dive into some practical examples.
What is the Best Technical Indicator in Forex?
Now for the exciting part: Just how profitable is each indicator on its own?
Summary: Popular Chart Indicators
Here’s a recap of the latest trading tools you’ve learned that will surely make your momma proud!
Recommendation
Taiwan New Dollar (TWD)
The Taiwan New Dollar (TWD) serves as the official currency of Taiwan. The currency code for the Taiwan New Dollar is TWD, and it is commonly represented by the symbol “NT$” or “元“.
Tajikistan Somoni (TJS)
The Tajikistan Somoni (TJS) serves as the official currency of Tajikistan. The currency code for the Somoni is TJS, and it is commonly represented by the symbol “ЅМ” or “сомонӣ.” The National Bank of Tajikistan oversees the issuance and management of the country's money supply, along with the establishment and execution of monetary policy.
Take Profit (TP)
Take Profit orders are crucial instruments for traders aiming to secure their profits at a set price point. By placing a Take Profit order, traders can guarantee that their positions are closed at a beneficial price, minimizing the risk of losing profits due to market volatility.
Tankan Survey
The Tankan Survey is a detailed and significant economic report released by the Bank of Japan (BOJ) that offers important insights into the nation's economic state. This survey is closely monitored by policymakers and analysts as it provides a snapshot of Japan's business sentiment and acts as a leading indicator of the country's economic performance. It is regarded as a major market influencer for JPY currency pairs.
Tanzania Shilling (TZS)
The Tanzania Shilling (TZS) serves as the official currency of Tanzania. The currency code for the Tanzania Shilling is TZS, and the commonly used symbol is “TSh” or “x/y.” The Bank of Tanzania oversees the issuance and management of the country's money supply, in addition to establishing and executing monetary policy.
Tariff
A tariff is a tax levied by a government on goods and services brought in from other nations. Tariffs have several functions, such as generating government revenue, shielding domestic industries from foreign competition, and shaping trade policies. In addition to being a revenue source for the government, tariffs can regulate foreign trade and impose taxes on foreign products to promote or protect domestic industries. Tariffs are among the most commonly used tools of protectionism, alongside import quotas, export quotas, and other non-tariff trade barriers. The term "tariff" comes from the French word tarif, meaning 'set price', which is derived from the Italian tariffa, meaning 'mandated price; schedule of taxes and customs'. Ultimately, this term traces back to the Arabic word taʿrīf, meaning 'notification'.