The beginner's guide to technical analysis.
To start your education on technical analysis, let's begin with the basics: support and resistance!
Let’s start with the most basic concept of price action analysis and how to start plotting them.
The most basic–but powerful–charting tool in the tool box.
Now that you understand trendlines, let’s take it a step further into channels to see opportunities in trends.
Time to learn how to trade the lines using two simple ideas: the Bounce and the Break!
Learn about these “invisible lines” that can act as support or resistance levels because so many traders are watching them.
A quick recap on support and resistance zones, and how to spot potential trading opportunities with them.
Thank you, Mr. Steve Nison, for "discovering" the art of candlesticks!
See why reading Japanese candlestick charts is a popular component of technical analysis.
Just like humans, candlesticks have different body sizes. As forex traders, it’s important to take note of what type of body a candlestick takes!
What do spinning tops, marubozus, and dojis have in common? They’re all the basic types of candlesticks!
What the heck is the difference between a hammer and a hanging man? Time to start learning about your basic candlestick patterns!
They say that trouble comes in twos. Read on to find out how dual candlestick patterns may not necessarily spell double trouble for your account.
In the forex market, three’s not always a crowd. Not when you’re talking about morning stars, black crows, and three inside up patterns, that is.
Think you’re ready to spot basic candlestick patterns with blindfolds on? If not, don’t worry! Here’s a candlestick pattern cheat sheet just for you.
Learn how to trade candlesticks with support and resistance levels.
Here are five mistakes that new traders often make when using Japanese candlesticks.
Here’s a rundown of what you need to remember about Japanese candlestick patterns.
Now that you know about the basic Japanese candlestick patterns, why not take it to the next level and learn about the Fibonacci retracement tool?
No, Fibonacci is not some type of pasta. Learn all about the man behind the concept and what it actually means.
The first thing you should know about the Fibonacci retracement tool is that it works best when the market is trending.
What happens when Fibonacci fails? Could it be because of your swing highs and lows, or are markets just not responding to it?
In this lesson, we’ll show you how to combine the Fibonacci tool with support and resistance levels.
What’s another way to tilt Fibonacci levels in your favor? Combining it with trend lines, of course!
Check out how combining candlestick patterns with Fibonacci levels can improve your trading odds.
Fibonacci levels aren’t only used to spot entry areas – they’re also good places to take profit!
If you can take profit at Fib levels, then you can definitely place stop losses there too!
Here’s a review of what exactly the Fib levels are, as well as their use in trading.
Thinking of trading in a trending environment? Try using moving averages!
A moving average is simply a way to smooth out price action over time. Here’s what it looks like.
These are calculated by adding up the last “X” period’s closing prices and then dividing it by X. Confused? Don’t worry, we’ll make it crystal clear.
Think an SMA is too easy breezy for you? Try your hand at using EMAs!
How does an SMA differ from an EMA? It’s pretty simple, actually.
One sweet way to use moving averages is to determine trends. And that’s just the beginning!
If MA lines cross over one another, it may signal that the trend is about to change soon.
Another way to use moving averages is to use them as non-traditional support and resistance levels. Here’s how:
Learn how to use moving average envelopes (MAE) to help you confirm trends or identify overbought and oversold levels.
What’s a moving average ribbon? Learn how to easily identify bullish or bearish trends using moving average ribbons.
The Guppy Multiple Moving Average (GMMA) indicator provides an interesting trading approach using moving average ribbons.
You may forget your name, but you should never forget the basics of moving averages!
Trading is like building a house--you gotta have the right tool for the job at hand. So let's put more tools in our tool box!
What better way to start building up your trading toolbox than by reading up on Bollinger Bands!
Learn how to use BBTrend, an advanced Bollinger Bands indicator created by John Bollinger, to identify market trends.
The Keltner Channel is a moving average band indicator whose upper and lower bands adapt to changes in volatility. Learn how the Keltner Channel is used to give overbought and oversold readings and signal possible price breakouts.
The MACD is used to identify moving averages that indicate a new trend. With a MACD, it’s all about three numbers.
In trading trending markets, it is equally important to identify when the trend ends. The parabolic SAR might be just what you need!
Learn how traders use the Stochastic indicator that help determine where a trend might be ending.
If you find that Stochastic isn’t your cup of tea, then you might want to take a look at the good ol’ RSI.
The Williams %R, or simply “%R”, is a momentum indicator that moves between 0 and -100, providing insight into the weakness or strength of a currency pair. %R is an overbought and oversold technical indicator that may offer potential buy and sell signals.
ADX is typically used to identify whether the market is ranging or starting a new trend. Here’s how traders usually read ADX signals:
No, “Ichimoku Kinko Hyo” ain’t Japanese for “May the pips be with you,” but it can help you grab those pips nonetheless.
Now that you know how some of the most common chart indicators work, you’re ready to get down and dirty with some examples.
Now on to the good stuff: Just how profitable is each indicator on its own?
Here’s a recap of the latest trading tools that you’ve learned that will make your momma proud!
Throughout my financial career, I have continually witnessed examples of other people that I have known being ruined by a failure to respect risk. If you don’t take a hard look at risk, it will take you.Larry Hite