Check our post how to draw HH, HL, LL, LH and then compare with trend line. You will get very good trend presentation.
For confirmation also add MA 21 and EMA 8 indicators and check if the ema's crossed.
Check the example above to see the 3000 Pips trend move.
There are no trading strategies that will generate a profit every single time, but there are some really basic strategies that can produce some pretty good results.
The Key to Success
What you are basically trying to do is identify pairs that are in strong trends on two longer time frames, and then enter a position when you get an EMA crossover in the same...
1. Research your broker, how do they stack up – It’s all very well to choose a broker because the interface is simple or you like the functionality, but do you know how they stack up to others? Have you really done your research? Make sure your broker is well regulated and licenced, well reputed, and that the spread they offer is consistently tight.
2. Only set...
Price on a given time frame is in an uptrend if it is making higher highs (HH) and higher lows (HL) and in a downtrend, if it is making lower highs (LH) and lower lows (LL). If the price is doing anything else, it is in a consolidation pattern – range, triangle, pennant, rectangle etc.
The trend is considered in place until price is no longer making higher highs...
What are Psychological levels?
Psychological levels are price levels which tend to draw big market attention and typically witness a reaction by price when tested. These levels are the main round numbers (whole numbers), referred to as “Double Zeros such as .9800, .990.
Plotting support and resistance levels is often a challenging and subjective task. It is...
– A Doji is a small bodied Japanese candlestick pattern whose opening and closing are at the same or nearly the same price.
– A Doji is usually part of common Japanese candlestick reversal patterns like the bullish Morning Star and bearish Evening star patterns
– Because Dojis are found in a large number of reversal patterns, traders automatically think that the...
We covered regular divergences in the previous lesson, now let’s discuss what hidden divergences are.
Divergences not only signal a potential trend reversal; they can also be used as a possible sign for a trend continuation (price continues to move in its current direction).
Always remember, the trend is your friend, so whenever you can get a signal that the...
If we take this trend line theory one step further and draw a parallel line at the same angle of the uptrend or downtrend, we will have created a channel.
No, we’re not talking about ESPN, National Geographic Channel or Cartoon Network.
Still, this doesn’t mean that you should walk away like it’s a commercial break- channels can be just as exciting to watch as...
Double Bottom
The double bottom is also a trend reversal formation, but this time we are looking to go long instead of short.
These formations occur after extended downtrends when two valleys or “bottoms” have been formed.
You can see from the chart above that after the previous downtrend, the price formed two valleys because it wasn’t able to go below a certain...
The double top pattern is one of the most common technical patterns used by Forex traders. It’s certainly one of my go-to methods of identifying a potential top.
Just as the name implies, this price action pattern involves the formation of two highs at a critical resistance level. The idea that the market was rejected from this level not once, but twice, is an...
The first thing you should know about the Fibonacci tool is that it works best when the forex market is trending.
The idea is to go long (or buy) on a retracement at a Fibonacci support level when the market is trending up, and to go short (or sell) on a retracement at a Fibonacci resistance level when the market is trending down.
Finding Fibonacci Retracement...
The ABCD pattern (AB=CD) is one of the classic chart patterns which is repeated over and over again. The ABCD pattern shows perfect harmony between price and time and is also referred to as ‘measured moves’. It was developed by Scott Carney and Larry Pesavento after being originally discovered by H.M Gartley.
Within the ABCD patterns, there are 3 types as...
Supply and demand is a trading and price action concept that analyses how financial markets move and how buyers and sellers drive the price.
On every price chart, there are certain price points where you can observe a sudden shift between the buyers and the sellers. Those areas are usually characterized by strong and immediate turning points, or an explosive...
Head and Shoulders
A head and shoulders pattern is also a trend reversal formation.
It is formed by a peak (shoulder), followed by a higher peak (head), and then another lower peak (shoulder).
A “neckline” is drawn by connecting the lowest points of the two troughs.
The slope of this line can either be up or down. Typically, when the slope is down, it produces...
What is a 'Bullish Outside Bar'
A bullish engulfing pattern is a candlestick chart pattern that forms when a small black candlestick, showing a bearish trend, is followed the next day by a large white candlestick, showing a bullish trend, the body of which completely overlaps or engulfs the body of the previous day’s candlestick.
Breaking Down 'Bullish Engulfing...
What is an Inside Bar ?
The inside bar is a two bar candlestick pattern, which indicates price consolidation. In order to confirm this pattern you need to see a candle on the chart, which is fully contained within the previous bar. In this manner, the inside bar candle should have a higher low and a lower high than the previous candle on the chart.
The Inside...
Symmetrical Triangle
A symmetrical triangle is a chart formation where the slope of the price’s highs and the slope of the price’s lows converge together to a point where it looks like a triangle.
What’s happening during this formation is that the market is making lower highs and higher lows.
This means that neither the buyers nor the sellers are pushing the...
