Technical Analysis

The two key trading methodologies that are used to trade the FX Market are Technical Analysis and Fundamental Analysis. Technical analysis is a discipline where chartist use past price patterns and indicators based on these price movements to predict future movements, the theory being that history repeats itself.  There is ample evidence in financial literature that both technical analysis and fundamental analysis can do well at FX trading.

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Technical Analysis Articles

How to Win in FX // 24 April 2013

Becoming a successful trader at the fx market requires skill. And as with other types of skills, it is not something that you perfect overnight. Read more >>

What’s a Head and Shoulders Pattern? // 16 April 2013

In technical analysis, you will often hear traders talk about the head and shoulders pattern. But what do they mean exactly when they talk about that? Read more >>

A Quick Introduction to Technical Analysis // 26 March 2013

If you wish to gain an upper hand in the forex market, then you need to be able to predict how prices and trends will move. Knowing the direction that the market would take would then help you decide accordingly on what action you need to take. Read more >>

How News Affect Forex Trading // 22 March 2013

Want to know how announcements affect forex trading? Read this article for more information. Read more >>

Understanding Wave Analysis // 14 March 2013

While it may sound like something a marine scientist would do, wave analysis is one of the most basic and therefore most important aspects of forex. So whether you are a novice or a seasoned trader, you will find yourself referring to wave analysis in making trade decisions. Read on for more. Read more >>

Euro cannot accelerate despite Swiss National Bank intervention. // 31 Oct. 2011

As we explained to in our EUR/CHF video a few days ago, the recent gains in the EUR/CHF may not necessarily indicate that there is significant strength in this pair just yet. The reason for this is that most of the buying of this pair has been done at the hands of the Swiss National Bank who has stated that a EUR/CHF rate below 1.2 is not tolerable. Read more >>

Bollinger Bands // 05 May 2011

Bollinger bands are a popular technical analysis indicator that is helpful in tracking short-term momentum for a particular FX cross currency. They are also used in stock, commodity and index trading as well. Read more >>

JPY showing strong signs according to MACD indicator // 18 April 2011

If you have been following the plight of the JPY since the earthquake you will know that it has been hit significantly falling against all major cross currencies, however, the MACD indicator shows that the currency might be oversold and set to rally against major cross currencies. Read more >>

William’s %R indicator FX trading // 18 April 2011

The Williams %R indicator is a well known momentum indicator that was created by Larry Williams. The aim of the indicator is to measure how close a cross currency is trading to its high over the past n number of days. The theory behind the indicator is that the closer a cross currency is to its high the more overbought it is. Conversely, the close to the low, the more oversold it is. Read more >>

MACD technical Indicator FX Trading // 17 April 2011

In this article we discuss the use of the MACD indicator in FX trading, for some practical examples of how the indicator works as well as a little more description on how the indicator works, please watch the video at the bottom of this article. Read more >>

Head and Shoulders Bottom // 12 April 2011

One of the most profitable FX trading patterns is the Head and Shoulders Bottom. A true Head and Shoulders bottom is a tell-tale sign to mark the end of a significant downtrend and the beginning of a new uptrend upon completion of the formation. The pattern is very distinctive and easy to recognise and is one of the most popular of all trading patterns. Read more >>

Double Top Pattern // 10 April 2011

Double Tops are an important part of any Forex Trading Strategy as they can provide an early indication that the current trend is changing direction from an uptrend to a downtrend. A typical double top starts with a prolonged rise in price for a currency, followed by a drop and then another rise to about the same level as the original rise. Finally, we see another substantial drop off from the second high. The double top pattern should eventually emulate the letter "M". Read more >>

Technical Analysis Video

Parabolic SAR // 17 June 2011

The Parabolic SAR is an indicator that is used by traders to determine the direction of a pair's momentum, and more importantly when the momentum has a larger than usual probability of changing directions. Sometimes when traders us the Parabolic SAR, they will refer to it as a "stop and reversal system". Play video >>

Commodity Channel Index (CCI) // 17 June 2011

The Commodity Channel Index, or CCI, is an oscillator used in technical analysis to help determine when a market might possibly be overbought or oversold. The Commodity Channel Index was developed by Donald Lambert, and visually represents the relationship between market’s price, a moving average of the market's price, and the normal deviation for the market from that moving average. Play video >>

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