Tag: support and resistance

Simple tricks to trade with pivot points more effectively

Simple tricks to trade with pivot points more effectively

Trading Strategies
While pivot point trading strategy is commonly used, there are risks involved nonetheless. These simple ticks can help you to reduce the likelihood of a trade going against you and thus increase your trade probability. There are many pivot point trading strategies which combines either price action or technical indicators. However, in reality trading with pivot points can be a bit risky as prices tend to respect the pivot levels only some of the times. No matter how well you combine the technical indicators, pivot point trading can be a bit risky. However, this simple trick can help you to identify potential reversal levels and trade more effectively. Pivot Reversals The pivot reversal method is based on the simple rule that broken support is often tested for resistance and vice versa...
Identify trends correctly with the 4-week rule

Identify trends correctly with the 4-week rule

Trading Strategies
Trends in the currency markets are one of the most important and basic elements to trading. Incorrect recognition or interpretation of trends can have a devastating effect on traders. Like a slow moving trading, the equity can be easily depleted without knowing what happened until the last dollar disappears from your trading capital. Trends, however seem to carry an element of subjectivity and are well represented by the many confusing articles that seem to claim to be the authority on trends. So how does one define a trend and why is it important to figure out the trend first? Why you need a trend (when trading) A trend is defined as “a general direction in which something is developing or changing”. In the context of the currency markets, trends are nothing but the general direction in
Easy trading strategies with Renko Charts

Easy trading strategies with Renko Charts

Trading Strategies
Renko charts, as written in our previous article is purely based on price action and is independent of time. Due to the nature of renko bricks, it is therefore easier to use various charting analysis such as trend lines, chart patterns, support & resistance. Unfortunately, most trading strategies based on Renko tend to focus on indicators such as moving averages, oscillators et all. In this article, we give a brief outline into the basics of trading with Support/Resistance levels. Short Term Support & Resistance Perhaps the most easiest of all, traders can identify support and resistance levels with renko charts with much more ease than with using any other chart types. The chart below is that of the NZDUSD, 10 pip renko move. The horizontal line plotted shows clear resista...

Support and Resistance for Trade Entries and Exits

Trading Strategies
Support and resistance levels are key levels where it is possible for the price of a currency pair to experience reversals. As such, they should always be considered whenever a trader wished to make trade entries and exits. A price support is a target price at which falling prices may stall or reverse upwards. Usually, the price of the currency asset will attempt to break through this level and will test it several times, each time being rebuffed. The more the support is tested without a break, the stronger the support. A horizontal line drawn across this price target will form a price support. A resistance level is a price level at which rising prices either stall or retreat from. The more that price level is tested and rebuffed, the stronger the resistance. A line drawn across ...
Forex technical indicators that are easy to use

Forex technical indicators that are easy to use

Trading Articles
Forex technical indicators that are some of the most simplest and easy to use technical analysis in forex include Trend links, trend channel, support and resistance and moving averages. By having a sound understanding of these forex technical indicators can go a long way when analyzing charts to place more successful trades. Technical analysis is nothing but the study of supply and demand in the forex markets, which is useful to identify the direction of the asset or in other words, identifying the trends in the forex markets. This in turn helps forex traders to identify trading opportunities by making use of the forex technical indicators. The success factor is primarily based on which forex technical indicators to use at a given moment and reflects on how experienced a forex trader is...