Posts Tagged ‘technical analysis’
Learn About Support and Resistance with Technical Analysis Training
Wednesday, February 24th, 2010
For traders, one concept that is hard to figure out is that of support and resistance . This is perhaps so because support and resistance are invisible until they are encountered , and even when that happens without using multiple timeframes it can be hard to recognize what is actually happening .
There is a lot of effort and time that go into using technical analysis training to find out in the market where support and resistance levels are. A variety of tools have been put to use, including retracement levels, trend lines, moving averages, and even candlesticks .
Some work, some do not , and more aggravating , some work some of the time but not always . Knowing when a tool or indicator will be reliable is information that is worth a lot .
Many people find their efforts have shortcomings due to just using one tool , and one timeframe is used in application, and they work to use it under every condition. Better results come when a variety of tools , every one designed for a specific condition on the market, are put to use in a very organized and thought out program that takes into consideration trends and congestion. Technical analysis training will show that further progress towards accuracy will occur as you use various tools and apply them to different timeframes and the differing results are taken into consideration .
The best results come when a comprehensive theory of market action is employed that aids the trader in knowing what the market is currently doing , why the market is doing that, what is probably going to happen in the near future , and supply the trader with projected levels of support and resistance that can be monitored in real time as the market steps forward .
A tall order ? Well perhaps , but various technical analysis systems have accomplished this .
Let’s start with some definitions .
Support happens to be something that is below price , and this force when encountered helps to raise prices back up to where they were. This is made up of market buyers that are there but waiting to take action until price reaches a certain level , or of short position holders who may be forced to buy if the market runs against them . This group of buyers that flock around a particular price that causes support to act like support .
Resistance deals with something that is above price , and it is a force that when encountered pushes price back down into the range from where it came . This includes those sellers waiting to make a move until price reaches a certain level , or of those long position holders who must sell if the market goes against them.
Support and resistance can be identified with regular technical analysis such as a 10 period moving average . Or this can be represented with a system that is more evolved that you learn about by technical analysis training like Drummond Geometry .
With this method we see a more evolved use of tools to create higher time period overlays of support and resistance areas from the weekly and monthly charts onto daily chart . These higher methods provide traders with more support when making decisions to buy or sell . When using this method you can project into the future areas of support or resistance, so traders can be prepared as the market goes on.
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Forex Trading Strategies
Tuesday, June 16th, 2009
Free 5 Day Video Trading Course
The current economic climate is leaving many people nervous about Share Trading, one only has to observe the charts and read the news on businesses in strife, to realise just how unpredictable the Share market is. Yes there is still profits in it, and with many shares available at relative bargain prices, there is plenty of chance to make some serious long term dollars.
With the deregulation of the Foreign Currency Markets or Forex in the 1990s, increasing numbers of people are exploring this as an alternative source or income. There are a variety ways to trade Forex, Day Trading or swing trading, the list goes on, but there is one thing they all offer the unwary, a high level of risk if you start trading thinking it’s easy.
There are two core analysis techniques; Fundamental Analysis, basing trading decisions on news events and Technical Analysis, which involves interpreting the charts using a variety of indicators. This is how I like to trade as I am not reliant on news feeds. It doesn’t matter which you choose, to minimize potential losses, you are going to have to learn Forex trading before you start committing any hard earned cash.
A good starting point is offered by Babypips.com, at no cost, but they do not delve into how to develop Forex trading strategies.
What is a Forex trading strategy? Simply put, it is a system for setting money management rules, analysing the progression of a chart, establishing a possible trade entry point (Setup), confirming the entry point, opening a trade, establishing an exist strategy to both minimise losses and to take profits.
A trading strategy is the backbone to Forex trading, it establishes and guides your every move when formulating, entering and exiting a trade, and without it, you will find it very difficult to work out why things work and why they fail.
In your early days of trading, a trading strategy provides the system for trading on a Demo account. These are provided by most brokers and allow you to get your feet wet, without putting cash at risk. You set an account balance and trade as the charts move testing your trading strategy and watch your balance either profit or crash. You’ll soon discover if what you have developed works!
To learn how to develop a a specific trading strategy for profiting from market rebounds, there is a free video course which will teach you a trade called the “Rubber Band Trade” and shows you what is involved in developing a trading strategy.
It’s a very profitable trading strategy developed by a Professional Trader and covers the technical analysis for all stages of this specific trade. Once you have tested this strategy on a Demo account and made it work consistently, you can apply it to a real account and start making some money whilst you develop and test other trading strategies that will make your Forex trading a success.
I studied and tested this trading strategy and still trade it when the charts set up correctly. A quick 20-30 pips? Why would you miss the chance?
To start grabbing rebound pip profits get the Free 5 Day Video Trading Course.
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Learn Forex Trading: Top Dog Trading Review
Monday, June 8th, 2009
FREE 5 Day Video Trading Course
When I started trading Forex markets, I quickly realized that fundamental analysis was not an system I could use, but analyzing charts and their patterns was what I preferred. Query ‘Technical Analysis’ on the net and you will be inundated with options, but after much investigation I discovered Top Dog Trading.
What made me decide to take this course to learn Forex trading?…. A number of things besides the absolute necessity to trade better and stop making too many losses that hurt; was that I understood what Dr Barry Burns was imparting on his website and much or the instruction is reinforced on heaps of videos which makes it much easier to follow his chart interpretations. The other very important criteria for me is the background of the educator and creator of the teaching materials. Barry’s CV is impressive, a business man who trades professionally, he is also a highly regarded speaker and writer.
So I signed up for his free 5 video course to see if I felt good about his analysis systems.
Leading up to this, I had studied several other courses on technical analysis relating to Forex trading but even after all of these felt there were gaps in my knowledge that would help me trade successfully, all this changed once I came across Dr Barry Burns, I now feel confident that I can make the business of trading a success.
Having completed Barry’s courses I have not only learned how to execute his methods but also embraced a far deeper understanding of the Forex market & the charts and probably more importantly the money management and personal attitudes that are such an important part of becoming a profitable Forex trader.
You will find Barry explains the principals simply and clearly, then gives real chart examples with all their confounding moves showing how to apply the rules for positive trades. This is all achieved via an expansive selection of videos.
Provided you follow the principals Barry explores, you will end up with a very profitable ratio of winning trades with tight control on the losses, so when one does have a losing trade (which even the best traders do) the hurt is not too great.
Barry’s courses are the best Forex trading courses that I have found and I would highly recommend that you give his FREE course a go. This freebie has 5 videos that introduce you to some of the most powerful trading material I’ve ever seen.
I personally took the course, loved it, and learned a lot from it and have gone on to Barry’s more advanced courses. My wish to learn Forex trading has turned out to be very profitable.
Explore the Free 5 Day Video Trading Course for yourself:
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