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GDP : What a forex trader needs to know to better the market

GDP - You might have heard politicians, business people, economists, traders and the common man (here and there) talking about it often times. If you’re confused about what it is and how it affects or say dominates, these many paradigms, you can have your answer here. What is GDP? Gross Domestic Product, as the name indicates, is the total monetary value of all the goods and services produced within the country in a certain period, usually a year or a quarter. Note: A company has its headquarters in country A, but produces its goods in country B,  then country [...]

GDP : What a forex trader needs to know to better the market2019-05-13T17:16:22+00:00

ABCD pattern | #3 tips to get better accuracy with the chart pattern

ABCD chart pattern is yet another gift of Fibonacci ratios to the field of technical analysis. It is a blend of time, price and shape. When all three converge at one point, it forms an electric move. Hence, the pattern also goes by the name Lighting bolt (AB=CD) pattern. What is an ABCD (AB=CD) chart pattern? The AB=CD pattern consists of two legs. The first leg being the AB and the second leg being the CD. When both these leg of movements have the same length (price), shape and the time duration to complete their move, then it completes [...]

ABCD pattern | #3 tips to get better accuracy with the chart pattern2019-05-11T14:52:17+00:00

Harmonic Patterns: The Complete Mini guide

Harmonic Patterns were initially proposed by H.M. Gartley in the year 1932. The trading fraternity, at that point, shrugged it off. However, when Scott Carney provided deep insights into harmonic patterns in his book, “Harmonic Trading”, the trading community welcomed it with both hands. There are several types of harmonic patterns -- AB=CD pattern, Gartley pattern, Butterfly pattern, Bat pattern, Shark pattern, Crab pattern and Cypher pattern. What are Harmonic Patterns? Harmonic patterns are trend reversal patterns. They are based on the Fibonacci retracement and extensions and geometric structures. The harmonic patterns provide traders the potential reversal zone (PRZ), [...]

Harmonic Patterns: The Complete Mini guide2019-05-11T14:55:43+00:00

Trading Divergence: Understanding it, the right way

Convergence and Divergence are leading indicators, which help identify trend reversals at the outset. The leading indicators are the ones which give signals about an event at the early stage. Since the signals are premature, there are considerable risks associated with it. Hence it becks the question- should you be trading divergence and convergence? But before answering the question, let us have a deep understanding of the CDC of trading- Convergence, Divergence and Congruence. Divergence When the price of an instrument makes a new high or new low, and if the indicator, say RSI or MACD, doesn't make a [...]

Trading Divergence: Understanding it, the right way2018-10-30T12:36:18+00:00

Elliot Wave: Corrective waves | Zig Zag pattern | Triangle patterns

The most complicated part of Elliott wave is the corrective waves. There are many forms of corrective waves which are difficult to comprehend at the hindsight. There are three classifications of corrective waves- zig zag pattern, flat wave and triangle patterns. Defining the Corrective waves Before delving deeper into the types of corrective waves, let's have a clear understanding about corrective waves. The waves 2 and 4 are corrective waves with respect to waves 1 and 3 respectively. The wave b is a corrective wave since it corrects the wave a. Consequently, the wave ‘abc’ is the corrective wave [...]

Elliot Wave: Corrective waves | Zig Zag pattern | Triangle patterns2018-12-20T10:35:29+00:00

Elliott Wave Theory: Mystery around Elliot wave demystified

Ralph Nelson Elliott discovered the Elliott wave theory in the 1920’s, but it didn’t attract attention at that time. It was brought to limelight by Robert Prechter when he predicted the bull market of the 1980’s (both in stock and gold) with the Elliot wave. The Elliot wave theory comprises three aspects pattern, ratio and time, along with impulse waves and corrective waves. Elliot wave: Pattern The Elliott wave pattern suggests that any market trend (bull or bear) is of the form 5-3 wave. Impulse waves move in the direction of the trend and corrective waves push against the [...]

Elliott Wave Theory: Mystery around Elliot wave demystified2018-11-01T17:38:16+00:00

Mastering Bollinger Bands | Bollinger Band squeeze uncovered

What is Bollinger Band? Bollinger Bands are developed by John Bollinger to identify and to take advantage of the volatility in the market. It consists of a simple moving average and two standard deviations of the same moving average known as the bands. The bands move parallel, in tandem, with the moving average. The most commonly used simple moving averages in Bollinger band are  20 SMA and 25 SMA. The two main applications of Bollinger bands are to identify - consolidation, by Bollinger band squeeze - the overbought and oversold condition in a sideways market. The bandwidth of the [...]

Mastering Bollinger Bands | Bollinger Band squeeze uncovered2019-01-05T14:45:16+00:00

Relative Strength Index | How to trade the RSI Indicator?

RSI IndicatorJ.Welles Welder built an indicator to identify the strength of the market movement, rather than just comparing the highs and lows and termed it as Relative Strength Index. The Relative Strength Indicator defines the overbought and oversold zones of the market and the RSI crossover from the zones signals a profit booking (correction) rally or trend reversal. So when the trend bucks, make bucks with the RSI Indicator.Relative Strength Index- The momentum oscillatorRelative Strength Index ranges only between the values of 0-100. It does not extend its value as the price moves. Instead, it confines the strength and momentum [...]

Relative Strength Index | How to trade the RSI Indicator?2019-03-09T17:29:06+00:00

Support and Resistance: Can the indicators do the trick for you?

The concept of support and resistance is beyond the paradigm of chart patterns, indicators or even the technical analysis. It is the classic case of supply and demand acting at specific price points. But are they bound to remain the same ever, at the exact spot? Let's visit the basics first, before delving deeper into the subject for your answer. Support and Resistance Support is the area in which maximum demand for an asset class exists. The buyers outnumber the sellers in the support areas. On the flip side, the area which has maximum supply is the resistance. Likewise, [...]

Support and Resistance: Can the indicators do the trick for you?2019-04-05T11:13:14+00:00

Moving Average | SMA | EMA – Oldest trick or the golden ticket?

Regarded by many as the oldest, lamest trick on the book -- Moving Average -- yet it identifies the trend precisely and remains contemporary. However, it can get you chopped in a choppy market. So, the tricky part is knowing when to embrace the moving averages, SMA and EMA, and when to let go. What is a Moving Average? Moving average is a lagging indicator which smoothens the past price action, filters the noise and decodes its complexity. It doesn’t predict the trend. Instead, it merely identifies the trend. Why is it important? In any field, be it sports or finance, [...]

Moving Average | SMA | EMA – Oldest trick or the golden ticket?2019-05-04T10:19:33+00:00