Trading Guide

Munehisa Homma, a Japanese rice trader of financial instruments, developed candlestick charts in the 18th century. People used it to trade rice. A western author named Steve Nison introduced it to the western world through his book ‘Japanese Candlestick Charting Techniques’. He did deep research on candlesticks before publishing the...

Dragon pattern is an interesting and exotic type of harmonic pattern which is also a reversal model of technical analysis in trading. It has a head followed by two feet. It is quite similar to the ‘W’ pattern or the double bottom pattern. In fact, it is a failed double...

Usually, traders use oscillators such as Stochastics, RSI, and CCI to find out overbought and oversold levels. But there is another way to use these oscillators. It is called divergence trading. It is basically comparing the direction of the indicator with the direction of the price. Usually, the direction of...

Harmonic patterns are a type of complex patterns that you can notice in trading charts. The first of these patterns were used by H.M. Gartley. He introduced Harmonic patterns to the trading world in 1932. He developed a pattern called Gartley pattern and wrote about it in his book ‘Profits...

Elliott wave theory is one of the most powerful theories that traders all over the world use to analyze the market. Most importantly, it provides a picture of current market psychology. Ralph Nelson Elliott, an American accountant and author, came up with Elliott wave theory in the 1930s. After his...

Support and Resistance The point at which a trend stops or makes a pause is a support or resistance, depending upon the direction of the move. If it is not confined to a singular point, and reverses from a series of points, in a vicinity, then it is a support zone...

Moving average Moving average serves as the best indicator of trend. It takes up recent move and the past move into consideration for defining a trend. Therefore, erratic volatile price movements can be easily filtered and the real price action can easily be absorbed using the simple moving average or...

Technical Analysis Forex technical analysis is the method of studying historical price action by the use of charts, to forecast the future prices. A technical analyst studies the chart, identifies the trend which in turn identifies the demand and supply for an asset. If the demand is high for an asset,...

Introduction to Forex Fundamental Analysis Forex Fundamental analysis is the method of ascertaining the intrinsic value of a currency pair based on economic events like interest rate, gross domestic product(GDP), consumer price index (CPI), producer price index(PPI), nonfarm payroll number(NFP, for the US) and political events. Interest rates in Forex Once...

There are countless ways to analyze the Forex market and make predictions. Among all those ways of analysis, these three types of Forex analysis are the most popular ones: Technical analysisFundamental analysisSentiment analysis Types of Forex analysis We will look into all these three in detail. We will also see...