Month: October 2022

How to Trade the Head and Shoulders Pattern

The head and shoulders chart pattern is a reversal pattern and most often seen in uptrends. Not only is “head and shoulders” known for trend reversals, but it’s also known for dandruff reversals as well. ? In this lesson, we’ll stick to talking about trend reversals and leave the topic of dandruff for another time. Head and Shoulders A… Continue reading How to Trade the Head and Shoulders Pattern

How to Trade Double Tops and Double Bottoms

When a double top or double bottom chart pattern appears, a trend reversal has begun. Let’s learn how to identify these chart patterns and trade them. Double Top A double top is a reversal pattern that is formed after there is an extended move up. The “tops” are peaks that are formed when the price hits a certain level… Continue reading How to Trade Double Tops and Double Bottoms

Summary: Leading and Lagging Indicators

Many forex traders use technical indicators as part of their technical analysis toolbox. We’ve gone through the two types of technical indicators based on the timing of the signals they provide. Here’s a quick recap of what we discussed in the previous lessons: There are two types of indicators: leading and lagging. A leading indicator or an oscillator gives a signal before the new trend or… Continue reading Summary: Leading and Lagging Indicators

How to Use MACD to Confirm a Trend

So how do we spot a trend? The indicators that can do so have already been identified as MACD and moving averages. These indicators will spot trends once they have been established, at the expense of delayed entry. The bright side is that there’s less chance of being wrong. On GBP/USD’s daily chart above, we’ve put on the 10 EMA (blue), 20… Continue reading How to Use MACD to Confirm a Trend

How to Use Oscillators to Warn You of End of a Trend

An oscillator is any object or data that moves back and forth between two points. In other words, it’s an item that is going to always fall somewhere between point A and point B. Think of when you hit the oscillating switch on your electric fan. Think of our technical indicators as either being “on” or “off”. More specifically,… Continue reading How to Use Oscillators to Warn You of End of a Trend

Leading vs. Lagging Indicators

In the previous grade, popular chart indicators were discussed. We’ve already covered a lot of tools that can help you analyze potential trending and range-bound trade opportunities. Still doing great so far? Awesome! Let’s move on. Welcome to Grade 6! In this lesson, we’re going to streamline your use of these chart indicators. We want you to… Continue reading Leading vs. Lagging Indicators

What is the Best Technical Indicator in Forex?

Now on to the good stuff: Just how profitable is each technical indicator on its own? After all, forex traders don’t include these technical indicators just to make their charts look nicer. Traders are in the business of making money! If these indicators generate signals that don’t translate into a profitable bottom line over time, then they’re… Continue reading What is the Best Technical Indicator in Forex?