Archive for Educational Materials
GBPUSD – talk through the trade taken this morning
Hi Students,
Just wanted to run through my trade taken this morning on GBPUSD, 30min timeframe. (more…)
GHTime Code(s): 10d1b
Trading Update GBPUSD
Using smaller time frames for earlier enteries
There was some confusion on the chat site this morning about when forex strategy rules are met (more…)
How important is a trading plan?
Question:
Everyone talks about putting together a trading plan, how important it is and that it can make or break you as a trader. I don’t really understand the importance of this and you never mentioned it in your course so I am wondering, it is that important?
GHTime Code(s): nc 5affeEducational Series – Part 1
Hello Serene Traders, This is going to be the first in a series of 5 blogs that I (more…)
GHTime Code(s): d98fc fe921Fibonacci Studies
FIBONACCI STUDIES
Overview
Leonardo Fibonacci was a mathematician who was born in Italy around the year 1170. It is believed that Mr. Fibonacci discovered the relationship of what are now referred to as Fibonacci numbers while studying the Great Pyramid of Gizeh in Egypt.
Fibonacci numbers are a sequence of numbers in which each successive number is the sum of the two previous numbers:
1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 610, etc.
GHTime Code(s): ncBollinger Bands
BOLLINGER BANDS
Overview
Bollinger Bands are similar to moving average envelopes. The difference between Bollinger Bands and envelopes is envelopes are plotted at a fixed percentage above and below a moving average, whereas Bollinger Bands are plotted at standard deviation levels above and below a moving average. Since standard deviation is a measure of volatility, the bands are self-adjusting: widening during volatile markets and contracting during calmer periods. (more…)
GHTime Code(s): 489a4Moving Averages
MOVING AVERAGES
Moving Averages
Moving averages are one of the oldest and most popular technical analysis tools. This chapter describes the basic calculation and interpretation of moving averages.
A moving average is the average price of a security at a given time. When calculating a moving average, you specify the time span to calculate the average price (e.g., 25 days). (more…)
GHTime Code(s): ncTrends
TRENDS
Trends
In the preceding section, we saw how support and resistance levels can be penetrated by a change in investor expectations (which results in shifts of the supply/demand lines). This type of a change is often abrupt and “news based.”
In this section, we’ll review “trends.” A trend represents a consistent change in prices (i.e., a change in investor expectations). Trends differ from support/resistance levels in that trends represent change, whereas support/resistance levels represent barriers to change. (more…)
GHTime Code(s): ncSupport & Resistance
SUPPORT & RESISTANCE
Support and Resistance
Think of security prices as the result of a head-to-head battle between a bull (the buyer) and a bear (the seller). The bulls push prices higher and the bears push prices lower. The direction prices actually move reveals who is winning the battle.
Using this analogy, consider the price action of Phillip Morris in Figure 6. During the period shown, note how each time prices fell to the $45.50 level, the bulls (i.e., the buyers) took control and prevented prices from falling further. That means that at the price of $45.50, buyers felt that investing in Phillip Morris was worthwhile (and sellers were not willing to sell for less than $45.50). This type of price action is referred to as support, because buyers are supporting the price of $45.50. (more…)
GHTime Code(s): 1b1d4Charts
CHARTS
Charts
The foundation of technical analysis is the chart. In this case, a picture truly is worth a thousand words.
Line charts
A line chart is the simplest type of chart. As shown in the chart of General Motors in Figure 2, the single line represents the security’s closing price on each day. Dates are displayed along the bottom of the chart and prices are displayed on the side(s). (more…)
GHTime Code(s): ncPrice Fields
PRICE FIELDS
Price Fields
Technical analysis is based almost entirely on the analysis of price and volume. The fields which define a security’s price and volume are explained below. (more…)
GHTime Code(s): ncSupport & Resistance
The upper and bottom borders of a trade channel form lines of support and resistance. In other words, support and resistance represent key junctures where the forces of supply and demand meet. (See also section below on Price Channels). The trading peaks represent the price levels at which the selling pressure exceeds the buying pressure, and these are known as resistance levels. The troughs, on the other hand – the support levels – represent the price levels at which the selling pressure succumbs to buying pressure.
Forex Charts
A price chart is a sequence of prices plotted over a specific time frame. On the chart the vertical axis represents the price scale, while the horizontal axis represents time.
Technical Indicators
Below we will describe some of the most important technical indicators used by forex traders. However you should always bear in mind that there are many more indicators that can be used for technical analysis. Here we will concentrate on the following:
- Trend indicators & support and resistance
- Mathematical indicators
- Fibonacci analysis and Elliott Wave Theory.
Trading Psychology; Get your mind right – Part 3
Morning traders, Today is our final day of the three part (more…)
GHTime Code(s): 01260 ncFibonacci Analysis
1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89…
The Fibonacci sequence has a number of interesting qualities:
GHTime Code(s): 1938fTrading Psychology; Get your Mind Right – Part 2
Create a tradig strategy..Dear Serene Traders, A couple of days ago we covered the (more…)
GHTime Code(s): 482f7 48193Techinical Analysis
What Is Technical Analysis?
Technical analysis is the analysis of market movement – the movement of prices, volumes and open interests – (more…)
GHTime Code(s): 0f58f 4d884Educational Series – Part 5
Hi Serene Traders,
Powered by MetastockWHAT IS THIS??? Not only does this look like a complicated (more…)
GHTime Code(s): 46b3a 08f04Continuation Patterns
Continuation patterns indicate a pause in trend, implying that the previous direction will resume after a period of time.
Price Channels
A price channel is a continuation pattern that is bound by a trend line and a return line. A price channel may slope up, down or not at all. Depending on the channel slope, each of the lines can serve as either support or resistance. Price channels with negative, downward slopes are considered bearish; and those with positive, upward slopes are bullish. Horizontal channels are neither bullish nor bearish, but simply reflect a pause in the underlying trend.
