By now you have an arsenal of weapons to use when you battle the market. In this lesson, you will add yet another weapon: CHART PATTERNS! Think of chart patterns as a land mine detector because, once you finish this lesson, you will be able to spot “explosions” on the charts before they even happen, potentially making you… Continue reading How to Trade Chart Patterns
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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
Summary: Popular Chart Indicators
Everything you learn about trading is like a tool that is being added to your forex trader’s toolbox. Your tools will give you a better chance of making good trading decisions when you use the right tool at the right time. Bollinger Bands Bollinger bands are used to measure the market’s volatility. They act like mini… Continue reading Summary: Popular Chart 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?
Trading with Multiple Chart Indicators
Now that you know how some of the most common chart indicators work, you’re ready to get down and dirty with some examples. Better yet, let’s combine some of these indicators and see how their trade signals pan out. In a perfect world, we could take just one of these indicators and trade strictly by… Continue reading Trading with Multiple Chart Indicators
Ichimoku Kinko Hyo
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
How to Use ADX (Average Directional Index)
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)