Tag: forex charts

Trading the Head and Shoulders Price pattern

Trading the Head and Shoulders Price pattern

Trading Strategies
Price patterns is the field of studying some recurring patterns that happen on the price chart, across different markets. Studying price patterns and especially getting familiar with some of the many patterns can build a profitable trading strategy. Most beginners to forex usually tend to find themselves lost in tons of trading indicators, trading systems and lose out on the most basic and easy trading methodology. This article serves as an introduction for beginners to some simple price patterns that traders can test and use and see the results themselves. Types of Price Patterns Of the many kinds of price patterns available, they can all be classified into the following two self explanatory groups: Continuation Patterns Reversal Patterns Bear in mind that when we talk about...
Introduction to using Charts in Trading

Introduction to using Charts in Trading

Trading Articles
Using charts in trading offers traders a visual interface into the marketplace. Traders make use of charts in order to understand the market dynamics that are in play behind the price action. No matter what you trade, stocks, options, forex or commodities, trading without using charts is like driving blind. Charts are relatively easy to grasp, perhaps because they are visual. However it can be misleading as most beginners in trading tend to use charts without having any basic knowledge to help them in their chart analysis. Charts do not predict the future price of the instrument, but when analyzed correctly can tell the trader a great deal on how to trade, when and what. There are many types of charts but the most commonly used chart types are Candlestick Chart Line Chart Bar...

The Importance Of Looking At Multiple Time Frames

Trading Articles
As we all know, currency pairs can be traded in various time frames such as 5, 15, 30 minutes through to 1, 2, 4 hours etc. Each trader has their own preference due to many reasons such as a difference in profit target or the amount of trading they wish to do. For instance, if a trader is using a 4h time frame they don’t have to do much trading as a new session starts every 4 hours. However, if they are trading on a 5 minute chart they will certainly need to look at the screen more often. Disadvantages of a single time frame As traders, we seem to develop a relationship with a particular time frame and stick to it for the rest of our trading days. Whilst this is a good way to trade it can have its disadvantages. The strategies that you learn on your Forex trading course may be effecti

A brief lesson to spotting chart set ups

Trading Articles
You can find low-risk, high-probability trading opportunities by trading with the trend. The trick is to find the end of market corrections, so you can position yourself for the next move in the direction of the trend. This excerpt from Jeffrey Kennedy's free 47-page eBook How to Spot Trading Opportunities explains where to find bullish and bearish trade setups in your charts and how to zero-in on these opportunities. If this lesson interests you, the full 47-page eBook is free through July 6. On the left-hand side of the illustration below, there are two bullish trade setups. As traders, we want to wait for the wave (2) correction to be complete so we can catch the move up in wave (3) – this is the trade. What we are trying to do in this bullish trade setup is anticipate the potenti