Forex Technical Analysis
Forex Chart Patterns: Currency Price Gaps
Bar charts and candlestick charts depict gaps that may occur between currency close and open prices. Technical analysis refers to these gaps as interruptions.
Directional Movement Index (DMI) Technical Indicator
One of the tools forex technical traders use in order to determine their trend trading strategies, is the Directional Movement Index (DMI).
Relative Strength Index (RSI) Technical Indicator
The Relative Strength Index (RSI) is a technical momentum indicator used to measure the relative changes between the lowest and the highest close prices of a currency.
Momentum Oscillators
Momentum measures the rate at which a currency price changes. In terms of trending, it is a very useful technical indicator of the strength of a currency price.
Stochastic Oscillators
Stochastic oscillators are technical momentum indicators that compare the closing price of a currency to its price range over a certain period of time.
Forex Technical Indicators: Oscillators
In this article we will examine the basics of another major group of forex technical analysis indicators - the oscillators.
Forex Technical Analysis Indicators Based on Moving Averages
In this article we will examine some of the mathematical tools based on moving average applied in technical analysis.
Forex Technical Indicators: Moving Averages
The term technical indicators refers to the mathematical tools that are applied when using technical analysis. Generally, there are two basic groups of technical indicators: moving averages and oscillators.
Forex Trend Continuation: The Rectangle Pattern
The rectangle trend continuation pattern resembles a rectangle (as its name implies) formed by two parallel to each other resistance and support lines.
Forex Trend Continuation: The Wedge Pattern
The wedge continuation pattern combines some of the characteristics of the triangle and the pennant formation.
Forex Trend Continuation: The Triangle Patterns
The triangle continuation patterns resemble pennants without poles. Forex technical analysis distinguishes four types of triangles: symmetrical, ascending, descending, and expanding.
Forex Trend Continuation: The Pennant Pattern
The pennant continuation pattern is similar to the flag chart formation but the support and resistance lines converge, which makes it to appear as a pennant.
Forex Trend Continuation: The Flag Pattern
Forex traders who use technical analysis should be familiar with the chart patterns that confirm the existing trends. The most common continuation patterns are flags, triangles and wedges.
Forex Trend Reversal: Triple Top and Triple Bottom Patterns
It is worth remembering that the major trend reversal patterns are the (inverted) head-and-shoulders, the double top (bottom) and the triple top (bottom) patterns. This article considers the triple top and the triple bottom formations.
Forex Trend Reversal: The Double Top and the Double Bottom Patterns
The double top and the double bottom formations represent another well-known pair of trend reversal patterns that are commonly found on forex charts.
Forex Trend Reversal: The Head-and-Shoulders and the Inverted Head-and-Shoulders Patterns
There are different reversal patterns that can be used in forex technical analysis. This article considers the Head-And-Shoulders and the Inverted Head-And-Shoulders trend reversal patterns.
Dow Theory Application on the Forex Market
The Dow Theory serves as the basis for the fundamental principles that guide the technical analysis.
How to Apply the Stochastic Oscillator on the Forex
If you are interested in comparing the current price of a currency on the forex to that of a given time period in the past, you should apply the stochastic oscillator.
When to Expect a Reversal of the Forex Market Trend
It is important for forex traders to closely examine the potential reversals at particular points in the charts available.
Trendline Basics
Being one of the main tools used for the price chart analysis, trendlines represent lines on the price chart of a currency that are depicting the general direction of price movements.
Types of Charts in Technical Analysis
Charts represent one of the major tools of technical analysis. Forex traders use several types of charts when doing technical analysis.
Forex Technical Analysis Basics
Technical analysis uses information from the past in order to predict movements of the forex market.
What is MACD?
The moving average convergence/divergence (also known as MACD) is a widely used indicator in the forex market.
What are Bollinger Bands?
Bollinger Bands are used for detection of unsustainable movements in prices, overbought or oversold currency pairs, and identifying support or resistance levels.
What is a Morning Star Pattern?
The morning star formation is a trend reversal pattern and a bullish sign which occurs when the market has reached a new low.
What is the Evening Star Pattern?
The evening start reversal pattern tends to signify the gaining of control by sellers over the rising market.
What is a Harami Pattern?
The Harami candlestick formation signifies either a down trend that is about to end or an up trend that is also about to finish.
What is an Inverted Hammer?
Another variation of a candlestick reversal pattern is the so called inverted hammer, characterized as a bullish signal.
What is a Shooting Star?
Another variation of a forex candlestick reversal pattern is the so called shooting star, characterized as a bearish signal.
What is a Dark Cloud Cover Pattern?
The dark cloud cover pattern a type of candlestick formation that is characterized as a bearish indicator.
What is a Piercing Line Pattern?
The piercing line pattern is a type of candlestick formation that is characterized as a bullish indicator.
What are the Doji and Double Doji Candlestick Formations?
Among the many formations of candlesticks, the doji is regarded as being the one with the highest importance.
What is a Bullish Engulfing Pattern?
The bullish engulfing pattern is a type of candlestick formation which signals that the down trend is about to end.
What is a Bearish Engulfing Pattern?
The bearish engulfing pattern consists of two candles and is characterized as a trend reversal pattern.
What are Hammer and Hanging Man Candlesticks?
There are several variations of forex candlestick patterns. Two of them are called hammer and hanging man. Both of them have long lower wicks and small bodies.
Forex Candlesticks Basics
One of the techniques you can apply in order to analyze market prices and signals is through the implementation of candlesticks.
Forex Technical Analysis vs Forex Fundamental Analysis
Forex market can be studied by either applying a fundamental analysis or a technical analysis. The first one uses basic economic conditions in order to make predictions, whereas the second one uses past currency prices.
Technical Analysis and Forex Market Trading
Since currency movements over the long-term are directly related to the different cycles the market goes through, combined with the fact that economic cycles are repetitive in their nature, technical analysis is perfect for the foreign exchange market.