Learn Forex – RSI as a Forex Trend Indicator
(Please click on the forex chart thumbnail to enlarge) Learn Forex (FXpath.com) – Many forex traders think of the Relative Strength Index (RSI) as just a simple chart oscillator that gives momentum readings of overbought/oversold conditions during trading ranges, as well as price-oscillator divergence indications. Actually, the RSI is somewhat more than that. One of [...]
Learn Forex – Paralysis by Analysis or Extinct by Instinct?
Learn Forex (FXpath.com) – Forex traders can gravitate towards one of two extremes, though most traders fall somewhere in between. One extreme is called “paralysis by analysis,” while the polar opposite extreme is called “extinct by instinct.” When a trader is faced with these two extremes, the wisest choice, as is often the case in [...]
Learn Forex – Using Bollinger BandWidth in Forex Trading
Learn Forex (FXpath.com) – Bollinger BandWidth is a particularly useful indicator for trading forex that is closely related to its volatility-indicating cousin, the Bollinger Bands. Whereas the Bollinger Bands are overlaid directly on top of price, as shown on the accompanying EUR/USD daily chart, the Bollinger BandWidth indicator usually resides either vertically above or below [...]
Learn Forex – Guppy Multiple Moving Averages (GMMA) in Forex Trading
Learn Forex (FXpath.com) – The GMMA, or Guppy Multiple Moving Averages, was developed by Daryl Guppy, an Australian trader. See the accompanying EUR/USD chart with the GMMA set of moving averages overlaid on top. Used by many forex traders, this multi-faceted indicator combines two different sets of moving averages. One set (the longer-term moving averages: [...]
Forex Trading Technical Analysis (2010/08/05) USD/CAD Breaks Down Further Off Triangle
(Please click on the forex chart thumbnail to enlarge) 8/05/2010 Forex Trading Technical Analysis (FXpath.com) – USD/CAD (a daily chart of which is shown) as of Thursday (8/05/2010) morning, after having broken down below the large triangle early in the week, has followed through on its bearish momentum below key 1.0200 support and down to approach further support [...]
Learn Forex – Trading Forex Naked on Price Action Alone
Learn Forex (FXpath.com) – When traders talk about ”trading naked,” they are usually referring to one of two meanings. One of those meanings will not be delved into here. The second meaning alludes to the use of charts that are devoid of mechanical indicators. Why trade without indicators? Naked traders would argue that mechanical indicators are primarily just mathematical derivatives [...]
Learn Forex – Forex Point and Figure Trading
(Please click on the forex chart thumbnail to enlarge) Learn Forex (FXpath.com) – In any financial trading market, including forex, some may characterize point & figure trading as trading based upon pure price action. This is because only price, which is undeniably the most important aspect of technical analysis, is customarily included on this type [...]
Learn Forex – Seeking Confluence when Trading Forex
Learn Forex / Forex Books (FXpath.com) – Following is an excerpt from my 2nd book, Essentials of Technical Analysis for Financial Markets (John Wiley & Sons, 2010), in which the important subject of seeking confluence in trading is discussed: “The vitally important concept of confluence within the realm of technical trading may mean different things to [...]
Learn Forex – Pin Bars, Hammers, and Shooting Stars in Forex Trading
(Please click on the forex chart thumbnail to enlarge) Learn Forex (FXpath.com) – Pin bars in the bar chart world are essentially the equivalent of hammers and shooting stars in the candlestick chart world. These single-bar price action indicators can be exceptionally effective confirming or warning factors for potential market turns in the forex market. Used in [...]
Learn Forex – The Basics of Fibonacci in Forex Trading
(Please click on the forex chart thumbnail to enlarge) Learn Forex (FXpath.com) – Fibonacci theory as we know it today originated from a 13th century Italian mathematician by the name of Leonardo of Pisa, otherwise known as Leonardo Fibonacci. His work that eventually led to such mainstream technical analysis standards as Fibonacci retracements originated from a sequence [...]
