FOREX TRADING BLOG

CONFIRMING AND DETECTING TREND CHANGES: THREE-LINE BREAK CHARTS

Published on 2010-01-27 08:02:26

Three-line break charts are useful for detecting and confirming trend changes. Three- line break charts are increasingly available to retail traders through their forex firms and through charting companies. They are worth using because there is little ambigu- ity whether a trend is in place and also at what point it would be considered reversed.Therefore, three-line break charts provide the ability to confirm trend direction in any time interval and project where the trend would be considered

PROJECTING HORIZONTAL SUPPORT AND RESISTANCE POINTS

Published on 2010-01-27 07:59:36

Where is the currency pair price and what is it doing? This question is quite basic but it involves many levels of analysis. Understanding the location of the currency pair is a foundational beginning of technical analysis and will reveal a great deal of information that a trader can use in formulating trading strategy.But how do we know where to look? The basic technical measurement of horizontal support and resistance provides the ground floor of technical analysis. Whenever you look at a cur

FIBONACCI LEVELS OF SUPPORT AND RESISTANCE

Published on 2010-01-25 04:39:04

Beyond basic geometric measures of support and resistance, there are hidden factors in- volving psychological forces and patterns in the market that enable the trader to project future levels of support and resistance. Most famous among these forces are Fibonacci levels.Fibonacci ratios are mathematical patterns of sequences that are expressed in many ways. There are innumerable references to the universality of Fibonacci numbers—a quick Google search reveals over 1,230,000 citations. The Fibo