Forex Technical Analysis Tutorials

Forex traders use Technical analysis as a tool to forecast future price movements, by looking at the historical Price data of a particular currency pair. Technical analysis charts can be used in various forms to enter live trades on a daily basis. At their most basic level, these charts help traders determine profitable entry and exit points for particular trades. They provide a visual representation of the historical price action of whatever currency pair is being studied. As such, traders can look at a Technical chart and know if they are buying at a reasonable price (based on the price history of that particular currency), selling at a cyclical top or perhaps entering into a negative or slow trade in a slow trending or sideways market. These are just a few market conditions that these charts can identify for the trader. Depending on the version of your softwares' sophistication, these charts can also help you with much more advanced studies of the currency market. Chart Patterns - Patterns in charts form within price charts within a group or trading range over time. Normally when you see price charts the Y axis or the vertical line measurement is the price and the X axis or the horizontal line is the time measurement. Knowing that, prices create various formations over a period of time, that have produced successful trading results. Price Action Charts - Many traders use price action charts as opposed to indicators to make their trading decisions. Most indicators are based on past price movement and therefore lag the market resulting in a late entry; or missing a large part of the move. Fibonacci Trading - The is the most powerful trading tools you will ever use by far in technical analysis. We discuss the three primary Fibonacci ratios and not minor ratios, ovals, arcs, bands or the time axis. Elliott Wave Trading - In its essence, the Elliott Wave theory states that the Forex market moves in a series of 5 swings upward and 3 swings back down, repeated perpetually. Bollinger Band Trading - Bollinger Bands are one of the more popular indicators used in day trading. This indicator is considered a leading indicator as 80% of price is contained within the upper and lower bands that consists of three lines; upper, lower and center. Trading with Moving Averages - There are trending indicators with buy and sell signals and indicators for sideways markets. When the market looks overwhelming, indicators can help us make sense of the confusion. Probably one of the oldest indicators is Moving Averages. Trading with Candlesticks - Each candle tells a story and represents the price movement (depicting the HLOC or high, low, open and close for a specific time interval.) Each candle displays an absolute value; but also allows us to easily compare current price movement to previous price movement. Over the years many simple candle patterns and some rather complex patterns have been identified to help traders identify potential price reversals or continuations. Trading with Pivot Points - Using Pivots in day trading are popular because they are predictive rather than lagging, providing a trader with 7 possible turning points each day. (Pivot, 3 support, 3 resistance.) With modern day trading methods many tools are available to automatically update your daily pivot points without the tedious job of having to calculate new Pivot Points daily. Using the RSI in your daily trading - The Relative Strength Index or (RSI) was developed by J Wells Wilder as an oscillator indicator that compares the magnitude of recent gains to recent losses to determine when a market or commodity is overbought or oversold. Trading with the Stochastic -  Personally I like to use the Stochastic Indicator as confirmation for any trade you are about to enter. The stochastic was developed to discern the relationship between the closing prices and high and low of a candle. Normally used as an overbought/oversold signal the indicator consists of 2 lines. Swing Trading as a Strategy - This is a trading strategy that attempts to capture gains in the market within a 1 to 4 day period. Swing traders use technical analysis to identify currency moves with short term price momentum rather than focus on the fundamental or intrinsic value of the currency pair. Swing traders are more focused on price trends and patterns. Support and Resistance Levels - How to identify significant levels of Support and Resistance and to draw in Long-term trend lines to identify market direction. Here you will find a short tutorial on how to identify market direction in Forex trading before entering into a live trade. Where to put your Stop Loss - Hopefully this stop loss strategy will help to remove some of the frustration of continually being stopped out of trades. This system works on a combination of chart and equity to help us determine not only where to place our stops but also the position size of the trade.

© Copyright 2017 - FX Hometrader - All rights reserved. 

Visit our Forex Trading Books for Sale page.

Forex Technical

Analysis Tutorials

Forex traders use Technical analysis as a tool to forecast future price movements, by looking at the historical Price data of a particular currency pair. Technical analysis charts can be used in various forms to enter live trades on a daily basis. At their most basic level, these charts help traders determine profitable entry and exit points for particular trades. They provide a visual representation of the historical price action of whatever currency pair is being studied. As such, traders can look at a Technical chart and know if they are buying at a reasonable price (based on the price history of that particular currency), selling at a cyclical top or perhaps entering into a negative or slow trade in a slow trending or sideways market. These are just a few market conditions that these charts can identify for the trader. Depending on the version of your softwares' sophistication, these charts can also help you with much more advanced studies of the currency market. (Please note that the tutorials is best viewed on your desktop screen) Chart Patterns - Patterns in charts form within price charts within a group or trading range over time. Normally when you see price charts the Y axis or the vertical line measurement is the price and the X axis or the horizontal line is the time measurement. Knowing that, prices create various formations over a period of time, that have produced successful trading results. Price Action Charts - Many traders use price action charts as opposed to indicators to make their trading decisions. Most indicators are based on past price movement and therefore lag the market resulting in a late entry; or missing a large part of the move. Fibonacci Trading - The is the most powerful trading tools you will ever use by far in technical analysis. We discuss the three primary Fibonacci ratios and not minor ratios, ovals, arcs, bands or the time axis. Elliott Wave Trading - In its essence, the Elliott Wave theory states that the Forex market moves in a series of 5 swings upward and 3 swings back down, repeated perpetually. Bollinger Band Trading - Bollinger Bands are one of the more popular indicators used in day trading. This indicator is considered a leading indicator as 80% of price is contained within the upper and lower bands that consists of three lines; upper, lower and center. Trading with Moving Averages - There are trending indicators with buy and sell signals and indicators for sideways markets. When the market looks overwhelming, indicators can help us make sense of the confusion. Probably one of the oldest indicators is Moving Averages. Trading with Candlesticks - Each candle tells a story and represents the price movement (depicting the HLOC or high, low, open and close for a specific time interval.) Each candle displays an absolute value; but also allows us to easily compare current price movement to previous price movement. Over the years many simple candle patterns and some rather complex patterns have been identified to help traders identify potential price reversals or continuations. Trading with Pivot Points - Using Pivots in day trading are popular because they are predictive rather than lagging, providing a trader with 7 possible turning points each day. (Pivot, 3 support, 3 resistance.) With modern day trading methods many tools are available to automatically update your daily pivot points without the tedious job of having to calculate new Pivot Points daily. Using the RSI in your daily trading - The Relative Strength Index or (RSI) was developed by J Wells Wilder as an oscillator indicator that compares the magnitude of recent gains to recent losses to determine when a market or commodity is overbought or oversold. Trading with the Stochastic -  Personally I like to use the Stochastic Indicator as confirmation for any trade you are about to enter. The stochastic was developed to discern the relationship between the closing prices and high and low of a candle. Normally used as an overbought/oversold signal the indicator consists of 2 lines. Swing Trading as a Strategy - This is a trading strategy that attempts to capture gains in the market within a 1 to 4 day period. Swing traders use technical analysis to identify currency moves with short term price momentum rather than focus on the fundamental or intrinsic value of the currency pair. Swing traders are more focused on price trends and patterns. Support and Resistance Levels - How to identify significant levels of Support and Resistance and to draw in Long- term trend lines to identify market direction. Here you will find a short tutorial on how to identify market direction in Forex trading before entering into a live trade. Where to put your Stop Loss - Hopefully this stop loss strategy will help to remove some of the frustration of continually being stopped out of trades. This system works on a combination of chart and equity to help us determine not only where to place our stops but also the position size of the trade.

© Copyright 2017 - FX Hometrader - All rights reserved.