Chart patterns in forex are probably the oldest form of technical analysis going and the funny thing is they still work.. not because theres anything magical about a triangle or a head and shoulders but because enough traders are watching for them that they become self fulfilling. When half the market sees the same neckline break at the same time and everyone hits sell at once … [Read more...]
Forex Candlestick Patterns That Actually Work and the Ones That Dont
Candlestick patterns are one of those things that everyone in forex thinks they understand but most people are reading them completely wrong.. or at least not reading them in context which amounts to the same thing really. The basics are simple enough youve got your bullish candles your bearish candles and a load of formations with fancy Japanese names that are supposed to tell … [Read more...]
Momentum and Short Term Analysis Indicators for Day Trading
The internal dynamics of the market are really the only thing you have to analyze the short term. These include three groups of momentum indicators: price, volume, and breadth. The most important is price, which is a quantitative measure of trend. Volume and breadth are qualitative; that is, they provide an indication of the quality of the price trend. For example, if … [Read more...]