Month: October 2022

Ichimoku Kinko Hyo? Yes, you’re still in the right place. You’re still in the School of Pipsology and not in some Japanese pop or anime site. No, “Ichimoku Kinko Hyo” ain’t Japanese for “May the pips be with you.” but it can help you grab those pips nonetheless. Ichimoku Kinko Hyo (IKH) is an indicator that… Continue reading Ichimoku Kinko Hyo

When trading, it can be helpful to gauge the strength of a trend, regardless of its direction. And when it comes to evaluating the strength of a trend, the Average Directional Index is a popular technical indicator for this purpose. The Average Directional Index, or ADX for short, is another example of an oscillator. ADX fluctuates from 0 to 100, with readings below… Continue reading How to Use ADX (Average Directional Index)

The Williams Percent Range, also called Williams %R, is a momentum indicator that shows you where the last closing price is relative to the highest and lowest prices of a given time period. As an oscillator, Williams %R tells you when a currency pair might be “overbought” or “oversold.” Think of it as a less popular and more sensitive version of Stochastic. As a momentum… Continue reading How to Use Williams %R (Williams Percent Range)

Relative Strength Index, or RSI, is a popular indicator developed by a technical analyst named J. Welles Wilder, that helps traders evaluate the strength of the current market. RSI is similar to Stochastic in that it identifies overbought and oversold conditions in the market. It is also scaled from 0 to 100. Typically, readings of 30 or lower indicate oversold market conditions and… Continue reading How to Use RSI (Relative Strength Index)

The Stochastic oscillator is another technical indicator that helps traders determine where a trend might be ending. The oscillator works on the following theory: During an uptrend, prices will remain equal to or above the previous closing price. During a downtrend, prices will likely remain equal to or below the previous closing price. This simple momentum oscillator was created by George Lane in the late 1950s. Stochastics… Continue reading How to Use the Stochastic Indicator

Up until now, we’ve looked at technical indicators that mainly focus on catching the beginning of new trends. Although it is important to be able to identify new trends, it is equally important to be able to identify where a trend ends. After all, what good is a well-timed entry without a well-timed exit? One indicator… Continue reading How to Use Parabolic SAR

What is MACD? MACD is an acronym for Moving Average Convergence Divergence. This technical indicator is a tool that’s used to identify moving averages that are indicating a new trend, whether it’s bullish or bearish. After all, a top priority in trading is being able to find a trend, because that is where the most money is made. With a MACD chart,… Continue reading How to Use the MACD Indicator

Keltner Channels is a volatility indicator introduced by a grain trader named Chester Keltner in his 1960 book, How To Make Money in Commodities. A revised version was later developed by Linda Raschke in the 1980s. Linda’s version of the Keltner Channel, which is more widely used, is quite similar to Bollinger Bands in that it also consists of three lines.… Continue reading How to Use Keltner Channels

Congratulations on making it to the 5th grade! Each time you make it to the next grade you continue to add more and more tools to your trader’s technical analysis (TA) toolbox. “What’s a trader’s toolbox?” you ask. Simple! Let’s compare trading to building a house. You wouldn’t use a hammer on a screw, right?… Continue reading How to Use Bollinger Bands