Archive for 'Technical Analysis'
Forex Technical Analysis: Howto Trade the Trend Lines?
Posted on01. May, 2007 by admin.
Only one of two things can happen when a price approaches support or resistance: the price can break through it, or it can bounce off and reverse direction. The same is of course true for trend lines.
1. Trading on a Pullback
If a chart is trending in a clear direction, and a trend line can be [...]
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Forex Technical Analysis: What are Trend Lines?
Posted on01. May, 2007 by admin.
What are Trend lines?
Trend lines are lines drawn on the historical price levels that depict general direction of where the marking is heading, and provide indications of support or resistance.
Drawing trend lines is a highly subjective matter. The best test of whether a trend line is a valid one is usually whether it looks like [...]
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Forex Technical Analysis: What are Trending and Ranging Markets
Posted on01. May, 2007 by admin.
In Trending Markets
The existence of a trend in any market depends on a series of relative highs and lows. Two consecutive relative highs, each above the previous relative high, and two relative lows above the previous low would be constitute a tentative up-trend. A third relative high would confirm the trend.
The continuation of a [...]
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Forex Technical Analysis: Howto Identify the Market Trend
Posted on01. May, 2007 by admin.
Three Phases of Major Trends
A trend represents a general direction of the market. Dow Theory asserts that major trends have three distinct phases: accumulation, public participation and distribution. The accumulation phase represents the first part of the trend in which those who are well-informed buy or sell. In other words, if the well-informed recognize that [...]
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Forex Technical Analysis: What is Support and Resistance
Posted on01. May, 2007 by admin.
What are support and resistance?
Support levels are prices where buyers have shown or are likely to show strength. Resistance levels are prices where sellers are likely to be strong.
Support
Support levels essentially give the market a ‘floor’, since they are areas where buyers tend to be strong. If the price falls to a strong support level, [...]
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Forex Technical Analysis: What are Charts?
Posted on01. May, 2007 by admin.
A chart is the most important tool for understanding the total sum of what is going on in the market. Almost all traders today, particularly those who trade actively, use their favourite types of charts to analyse the market. In the end, a chart is a visualised representation of the price movements, a reflection of [...]
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Technical Analysis: Introduction
Posted on27. Apr, 2007 by admin.
There are two major approaches to analyzing the currency market, fundamental analysis and technical analysis. The fundamental analysis focuses on the underlying causes of price movements, such as the economic, social, and political forces that drive supply and demand. The technical analysis focuses on the studies of the price movements themselves. Technical analysts use historical [...]
