20/02/ · If you are looking to learn technical analysis you have landed at the right page. Forex Technical Analysis Tutorial will give you a strong foundation of professional technical analysis.. If you are a complete beginner to the trading space, we advise you to start from our Forex tutorial for beginners.. If you have some basic knowledge of the field, or even have good experience, I am confident Estimated Reading Time: 7 mins Chart Patterns Tutorial Traders have debated the merits of “technical analysis” versus “fundamental analysis” for years. In reality, most traders probably do not make such a rigid distinction between these two approaches to market analysis and use some of both in making their decisions 24/06/ · Modern forex trading is considered to be impossible without forex charts. Those two go hand in hand, and will for quite some time. A forex chart is a must, regardless of whether a trader is planning to analyze live forex charts or have someone else crunch the numbers in their blogger.comted Reading Time: 9 mins
Trading Charts: Live Forex Charts
In reality, most traders probably do not make such a rigid distinction between these two approaches to forex chart tutorial analysis and use some of both in making their decisions. Fundamental analysis studies factors such as supply, demand, weather, political developments, economic reports and the like to come up with their forecast for potential price direction.
But many traders do not have access to all of the vast amount of fundamental information available nor do they have the ability to interpret the significance of much of this information on the market they are trading. Conclusions from fundamentals tend to be quite subjective. Instead of trading to digest all of this fundamental information and convert it into an opinion on prices, those who use technical analysis believe that forex chart tutorial that is to be known about a market is incorporated into one thing, price, and look only at data generated by the action of the market itself.
By the same forex chart tutorial, even the most dedicated follower of technical analysis is likely to keep in mind the importance of key fundamentals such as natural disasters, political upheavals, forex chart tutorial, major economic reports, etc. This trading tutorial focuses on the basics of technical analysis, which involves several underlying assumptions:. Technical analysis can be rather simple or quite complex, depending on the capabilities you have to manipulate the market data.
As long forex chart tutorial you have the relevant price data, these basic tools do not even require a computer although a computer does forex chart tutorial analysis much faster and easier. Over the years traders have developed a number of different types of charts in an effort to get a better view of price action. Old chart techniques are resurrected and new chart ideas devised, but the following types of charts continue to be the forex chart tutorial widely used.
Close-only charts — As its name suggests, only the close for a time period is plotted, and a line connects the dots of these closes. These work best for an overview, especially over a long period of time. Bar or line chart — Perhaps the most popular type of chart, the bar chart adds new information for the trader, showing the high and low prices for a time period in addition to a horizontal notch on the right side of the vertical bar indicating the close, forex chart tutorial.
Many chart services also show the opening price with a horizontal notch on the left side of the vertical price bar. Candlestick forex chart tutorial — This concept was introduced to western traders in the late s and adds yet another dimension to the standard open-high-low-close price data to make the price action during a period more visual at a glance, forex chart tutorial. If the close is higher than the open, the body is usually shown as clear or white and indicates the market gained strength during the period — the bulls won the day.
If the close is lower than the open, the body is usually black or dark and indicates the market lost strength during the period — the bears won the day. No matter what chart type you use, the first thing you should try to determine as a trader is the trend of market. You can use all kinds of clever ideas and sophisticated techniques to arrive at your trading decisions, forex chart tutorial, but a basic building block of whatever trading style you use should be trend analysis.
Here is what respected technical analyst John J. The danger in placing too much importance on oscillators, forex chart tutorial, by themselves, is the temptation to use divergence as an excuse to initiate trades contrary to the general trend. This action generally proves a costly and painful exercise.
The oscillator, as useful as it is, is just one tool among many others and must always be used as an aid, not a substitute, for basic trend analysis. The definition of a trend is pretty simple. An uptrend is a series of higher highs and higher lows. A downtrend is a series of lower highs and lower lows. Like much of technical analysis, however, drawing trend lines is more art than science, forex chart tutorial. During a downtrend, a line is drawn to the right along successive rally peaks see chart below.
As mentioned in the basic rules of technical analysis, a trend in motion tends to stay in motion. Of course, at some point any trend will end. One rule for negating trend lines is that prices must penetrate the trend line resistance or support level and then show evidence of follow-through strength or weakness during the next trading session.
However, if prices make a big push above or below the trend line, then that trend line is negated without needing follow-through confirmation.
In some cases, you can draw a line parallel to the uptrend or downtrend line to form a trading channel, providing some boundaries within which the trend unfolds. In an uptrending move, the straight line across the reaction lows reveals the trend, and a parallel line across the highs defines the channel. In a downtrending market, the straight line across the highs determines the trend and a channel line is drawn across the lows. Channels make the trend clearer, and breakouts in either direction can provide signals to initiate or exit positions.
Prices do not always move up or down but spend much of their time chopping back and forth. One example of a channel is the formation that develops during a sideways trading range or a basing pattern when prices hold in a generally narrow band at lower price levels for a period forex chart tutorial time.
The longer the sideways basing action, the more powerful the upside breakout from the trading range is likely to be, forex chart tutorial. A market trend tends to persist, as we mentioned in the previous section. As long as price action continues to respect a trend by bouncing off a trend line, the trend line is perhaps the most powerful continuation pattern.
But other price movements also suggest that the trend in place is likely to continue. Bullish flags — Bullish flag patterns occur when a market makes a very strong uptrend in prices, followed by a pause or sideways to lower trading for a few price bars, and then the market resumes a strong price uptrend.
The countertrend move against the main trend usually lasts just a few days. Sometimes the initial surge off a bottom looks like a flagpole and can be used as a measurement device, adding the length of the flagpole to the point where prices break out above the flag to project a price target. Markets typically fluctuate between periods of high volatility and periods of low volatility, and that is how flag patterns are formed as the market seems to take a breather to reassess the situation before resuming its upward climb.
Bearish flags — Bearish flag patterns are formed when a market makes a strong price downtrend followed by a pause or sideways to higher trading for a few price bars, and then a resumption of the strong price downtrend. As with a bullish flag, the congestion area that forms is a period when the market consolidates and reassesses what it has done before returning to its downward trek.
Symmetrical triangles or pennants — Several types of triangle-shaped patterns are continuation patterns. Price action seems to tighten into a coil, with highs and lows producing smaller ranges as prices move toward the apex of the triangle. Technical odds favor a price breakout from the triangle pattern in the direction of the most recent dominant price trend — in the chart example above, down. Descending triangle — Adding to the succession of patterns suggesting a continuation of the downtrend on the chart above is the descending triangle.
The market is able to find buying support at about the same general level for several days in a row, but the highs for forex chart tutorial day get progressively lower as prices move toward the apex of the triangle, forex chart tutorial.
As with other triangles, when buyers decide they can no longer hold the price at the level on the horizontal side of the triangle and the breakout eventually occurs, prices are expected to move in the direction of the dominant forex chart tutorial. Ascending triangle — The ascending triangle reverses the appearance of the descending triangle. Sellers keep the lid on price movement at the horizontal side of the triangle but buyers keep pressing the market higher, causing the lows to be higher each day until the breakout above the horizontal line occurs.
As the chart indicates, forex chart tutorial, it may take a few more days of trading as buyers and sellers retest the breakout.
As with other triangles, the expected move after the breakout is in forex chart tutorial direction of the dominant trend. Cup and saucer — Some analysts call this formation a cup and handle, but the type of trading activity is the same. A market makes a gradual descent, forex chart tutorial, trades at a lower level forex chart tutorial a while and then makes a gradual ascent to form a rounding bottom — the saucer or the cup, depending on the name you give this formation, forex chart tutorial.
After prices reach the lip on the right side of the saucer or cupthe market runs into resistance from the lip on the left side and sets back for a short time before moving back up to the lip level, forming the cup or handle. When prices do pick up enough momentum to break above the lip level, they often do so with rather vigorous market action on higher volume, sometimes leaving a forex chart tutorial at the start of what becomes an extended uptrend.
Like their name implies, these patterns suggest that one trend is ending and the market is ready to begin another trend in the opposite direction or, perhaps more likely, move sideways for a while. As with forex chart tutorial patterns, a trendline is the basic pattern to watch, forex chart tutorial.
If prices break through forex chart tutorial trendline and then follow through in the same direction, this is the best evidence of a trend reversal. Keep in mind that all chart patterns apply to all trading time frames — daily, weekly, forex chart tutorial, yearly, hourly or even minute-by-minute bar charts. Double tops — This phenomenon occurs when prices reach a fresh high, back off from that high, forex chart tutorial the high and back off again.
In all forex chart tutorial these cases, forex chart tutorial, the key points are the highs, which mark forex chart tutorial barrier that becomes strong resistance, and the interim low. If prices drop below that low, the top is confirmed, and it is signal to sell, forex chart tutorial. Double bottoms — The principle of this pattern is the same as the double-top reversal, except reversed. In all of these patterns, prices reach a fresh low, rebound a forex chart tutorial, drop back to re-test the low and then move back higher.
When prices exceed the interim high, a bottom is confirmed, and the market is providing a signal to buy. Head-and-shoulders top reversal — This forex chart tutorial trend reversal pattern occurs when the market makes a new high left shoulderdrops back, runs up to a higher high headdrops back again, rallies to a high that is at about the forex chart tutorial level as the left shoulder high right shoulder and then declines again. When prices drop below the neckline, that signals the completion of the top and the potential beginning of a downtrend although, forex chart tutorial, in many cases, prices tend to react back to the trendline so the break does not produce a downtrend immediately.
Sometimes the neckline break occurs as a gap or with a strong move down, reinforcing the price reversal.
The head-and-shoulders is one of several chart patterns that can be used to project a price target. Analysts measure the distance from the top of the head to the neckline and then subtract that distance from the neckline break to calculate how low prices might go. Head-and-shoulders bottom reversal — Just as the double bottom mirrors the double top, the head-and-shoulders bottom is like the head-and-shoulders top but in reverse.
That is, prices slide to a low left shoulderrally, forex chart tutorial, then fall back to a lower low headforex chart tutorial back up, then sink again to a low at approximately the same level as the left shoulder low right shoulder.
The neckline again is an important point. When prices break through the neckline, the reversal pattern is complete and a potential uptrend may begin. As with the head-and-shoulders top, there is likely to be some trading back and forth on either side of the neckline as the market makes its decision on which way to go, and the distance between the neckline and the head can be used to project how high prices might go, forex chart tutorial.
Falling wedge — This pattern occurs when the market is in an overall price downtrend and the highs are declining faster than the lows, forming a wedge shape. Sellers are able to push prices lower but there is enough buying support to keep the market from tumbling. These patterns are usually bullish and do forex chart tutorial a change in trend. Rising wedge — This pattern is the reversal of the falling wedge and occurs when the market is in an overall price uptrend s.
Buyers keep pushing the lows of the day up, but there is enough selling to keep the market from taking off higher. Eventually, buying dries up and the sellers take over, forex chart tutorial, pushing prices below the short-term wedge uptred line. These patterns are usually bearish and do portend a change in trend, forex chart tutorial.
Diamond pattern — This is a relatively rare pattern that usually occurs at market tops. Volatility increases at higher price levels, producing wider range days to form the widest part of the diamond. Then volatility decreases on the right side of the high and the price bars get smaller as they move forex chart tutorial a triangle-like pattern to complete the diamond formation. This low-volatility, high-volatility, forex chart tutorial, low-volatility combination usually resolves itself with a turn to the downside.
Several other concepts need to be mentioned in any discussion of basic chart patterns because they are an integral part forex chart tutorial any technical analysis toolbox. Support and resistance — As has been mentioned previously in this tutorial, technical analysis begins with the trend line. The trend line is also the first point of support and resistance.
Projecting a trend lines to determine future support and resistance areas is extremely effective. As the charts in the trend line discussion illustrated, a trend line along the lows in an uptrend or across the highs in a downtrend is a forex chart tutorial barrier for prices to cross if the market is to change trend direction, forex chart tutorial.
Forex Trading For Beginners Marking Up The Charts Putting It All Together!
, time: 36:46Renko Chart Tutorial
02/11/ · 1. A trend (x-y) or sequence of red renko bars followed by a pullback (y-z) of green renko bars. 2. Wait patiently for the 1st red renko bar (Trigger Bar) to close immediately following the. pullback. Enter trade here. 3. Make sure the last green renko bar (z) Estimated Reading Time: 5 mins 07/09/ · Free trading charts for forex, major commodities and indices. Our charts are fully interactive with a full suite of technical indicators blogger.com may, from time to time, offer payment processing services with respect to card deposits through StoneX Financial Ltd, Moor House First Floor, London Wall, London, EC2Y 5ET. GAIN Global Markets Inc. is part of the GAIN Capital Holdings, Inc. group of companies, which has its principal place of business at US Hwy /
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