Analysis
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There are many methods of technical analysis in trading. One of the most popular is trading by patterns or, as they are also called, figures. This method of predicting the price direction has a lot of supporters and opponents. Let's try to evaluate the pros and cons of trading on patterns of technical analysis. Why are there technical analysis patterns supporters rely on one of the postulates of technical analysis, which states that the price takes into account everything. The price has a graphical representation: a continuous line, bars, Japanese candlesticks. Accordingly, studying the price chart of an asset is essential for predicting the price. In addition, if we take into account that the price moves under the influence of the sentiments of market participants, then,...
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Just recently ECB governor Mario Draghi surprised financial circles by saying that he had serious concerns about the influence of political forces on the work of global central banks, especially, as he put it, central banks of leading jurisdictions. You don't have to be a jack-of-all-trades to understand that Mario Draghi's remarks refer to President Trump's harsh criticism of the Fed. We will try to understand how the relationship between the U.S. president and the Fed works, and whether Trump can have any real influence on Jerome Powell's agency. The history of the conflict Since 2015, the Fed has decided to raise interest rates as many as nine times. Tightening monetary policy has naturally led to a strengthening of the dollar. Seven of these...
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Just 10 years ago the EUR/USD had a fluctuation range of 2,400 pips in just one quarter. In the first quarter of this year, the fluctuation range barely reached 400 pips. The time of aggressive monetary policy is over. The sentiments of the world's central banks are getting more and more "dovish" and that is simply killing speculative trading at the foreign exchange market. Even a beginning trader knows that profit at currency market is formed due to difference in exchange rates. To buy cheaper and sell dearer is the essence of trading. The difference in price is a trader's profit, and the bigger it is, the more trader can earn. The central banks of the world, not excluding...
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One of the most controversial graphical figures of technical analysis of the continuation of the trend on , are triangles. In fact, triangle shapes are similar in their construction to "Pennants" and "Flags", but without the initial upward/downward movement. Symmetric Triangle Trading Signals What is a symmetric triangle and how is it formed? When the bulls and bears are in equilibrium in the market, and volatility gradually subsides, the price is "clamped" in a narrow range. We can make a symmetrical triangle with at least two points of lows and two points of highs in this narrowing formation. As a rule, a symmetrical triangle pattern will look like two converging support and resistance lines. Once we have overcome the narrow range and narrowed the chart...
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Every trader knows about the figures of technical analysis and many use them in their trading. But it turns out that not everyone knows how to trade by them correctly. If there are no problems with the figure definition, its marking etc., many traders, especially beginners, are at a loss as to where to place stop-loss and take-profit orders. Let's try to understand it by taking the most popular TA figures. The figure of a trend reversal "Head and shoulders" The figure of the technical analysis "Head and shoulders" is a reversal and means the end of the uptrend. The mirror figure is "Inverted head and shoulders" - the sign of the end of the downtrend. The figure, as it is clear from the name, consists of schematically displayed two "shoulders"...
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Фигуре разворота тренда «Голова и плечи» посвящено достаточно большое количество исследований и публикаций. Авторы сравнивают ее с волновой структурой Эллиотта, со схемой процесса накопления и распределения, характеризующей деятельность крупных игроков на рынке , и даже разрабатывают обратные торговые стратегии, основанные на нежизнеспособности фигуры «Голова и плечи» в определенных рыночных условиях. Упущенные аспекты фигуры технического анализа «Голова и плечи» Являясь сторонником гармоничной торговли и предпочитая проводить анализ в его классическом понимании, я, в свою очередь, хотел бы обратить внимание на два немаловажных аспекта, о которых не стоит забывать трейдерам, использующим фигуру технического анализа «Голова и плечи»: Во-первых, ее можно разложить на части, каждая из которых является…
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Анализ нескольких таймфреймов в стратегии “Следование за рынком” обеспечивает более широкий взгляд на рынок и повышение качества оценки динамики котировок торгуемого актива. Как работает MTF стратегия Движение рынка происходит в нескольких временных периодах одновременно, поэтому любой котировочный сигнал, анализируемый трейдером, состоит из множества ритмов с различными периодами, при этом ритмы непостоянные: возникают и исчезают в ходе своей эволюции во времени. Это может приводить к противоречиям в тенденциях (трендах) рынка в зависимости от временного периода, используемого трейдером в качестве основного при торговле. Например, по основному периоду – тренд “восходящий”, но при этом наблюдаются среднесрочный и краткосрочный “нисходящие” тренды по другим периодам.…
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The use of patterns in trading on the currency market, be it Price Action, candlestick patterns or technical analysis patterns, is one of the popular methods of price forecasting and is used by many traders. Nevertheless, there are many examples when a seemingly perfect pattern "cheats" the trader, not realizing its potential. Today we will consider one of the ways to improve the efficiency of graphical patterns on the currency market. Unfortunately, cases of "non-performance" of the patterns on the currency market are common. It is enough to have a closer look at the chart to find them. Of course the older the timeframe the higher the probability that everything will work, but on larger...
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Система RAIQS предназначена для следования за рынком в тренде, во флэте и на разворотах. При этом анализ двух слоев в системе ТА RAIQS, позволяет охватывать широкий диапазон изменения динамических свойств сигнала котировок торгуемого инструмента. Настоящая публикация является продолжением статьи: «Следование за рынком по системе RAIQS из четырёх индикаторов», в которой приведено описание системы ТА RAIQS из четырёх индикаторов (RASL, RAOS, RAMA, RAOSQ). Построение двухслойной системы ТА RAIQS Базовые принципы построения двухслойных систем ТА рассмотрены в статье «Индикаторы для системы технического анализа RASL + RAOSQ». 1. Формируем первый (“быстрый”) слой RASL колебаний сигнала котировок, заключенных в интервале от 5 до 20…
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When constructing the RAIQS system of four indicators to implement the "Follow the Market" strategy, previously published indicators are used: the RAMA moving average, the RASL layer trend indicator, the RAOS and RAOSQ quadrature indicators (quadrature oscillators). Previously published indicators are described in detail in the articles: Improved modification of the moving average - RAMA indicator vs. SMA New RASL layer trend indicator and trading strategy based on it New technical indicator - RAIX layer oscillator and building trading strategy RAOS and RAOSQ quadrature indicators - more information for trading strategy Indicators for RASL + RAOSQ Technical Analysis System Speed and acceleration of moving average - two important characteristics when trading on...
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Increase of market efficiency when using "moving averages" indicators in trading strategies is possible, if we know two more characteristics - speed of change and acceleration of moving average change. Chart 1 shows quotes of gold price (Daily), two moving averages: RAMA(40) (bold black line), RAMA(11) (bold red line). More details about the RAMA indicator, as well as about its algorithm can be found in the article "Improved modification of Moving Average - indicator RAMA vs SMA". From figure 1 you can see that the rate of change of the moving average line of RAMA should reflect the value of its inclination at the given moment of time,...
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We already have an idea of the functions of the Ishimoku indicator lines. Knowing and being able to determine the moments of signals and the levels of support and resistance given to us by the indicator lines, we have come to an important topic in working with the Ishimoku indicator - how to enter the market correctly and determine the levels of setting targets and stop orders. Let's start with the latter. When receiving a signal from a line to enter the market, we need to determine the level the price will reach during the signal processing and where to place the stop order if the signal is rejected. Let's consider it on examples....
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If you already have a basic knowledge of how to work in the financial markets and are on the threshold of building your own trading system, I recommend studying the Ishimoku indicator. The Ishimoku indicator combines the power of five lines and Japanese imagery. It is becoming more and more popular among traders, becoming a solid basis for their trading systems. This indicator can help you achieve success and financial independence. In the previous article, we learned about the definitions of the components of the Ishimoku Indicator and how its two lines Tekan Sen and Kijun Sen work. Today we will talk about the other two lines of this indicator Senkou Span A and Senkou Span B. Senkou Span...
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The figures of a trend reversal "Double bottom" and "Double top" appear on the price chart quite often, and at any time interval. In technical analysis they are quite a strong sign of a trend reversal. Tehanalysis figure "Double bottom" is formed when trend is descending, and "Double top" - when trend is ascending. Let's consider the figure with an example of "Double top" trend reversal pattern. The price, having overcome the resistance level, reaches a certain maximum, after which it rolls back to the previous resistance level, which is already a support for Double Top TA figure. The price pushes away from this support and makes the second attempt of growth, but not being able to break through the maximum of the first top, begins to...
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When constructing the system of technical analysis RASL+RAOSQ and the principles of the trading strategy based on it, we use previously published indicators: the RAMA moving average, the RASL layer trend indicator, the RAOS and RAOSQ quadrature indicators (digital quadrature oscillators). You can read more about them in the previous articles of the author on the FORTRADER website. Improved modification of the moving average - indicator RAMA vs SMA New trend indicator of the RASL layer and a trading strategy based on it New technical indicator - oscillator of the RAIX layer and a trading strategy Construction of the RAOS and RAOSQ quadrature indicators - more information for the trading strategy Construction of a single-layer RASL + RAOSQ technical analysis system Figure 1 shows the above...
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When constructing the system of technical analysis RASL+RAOSQ we used previously published indicators: Moving Average RAMA, trend indicator of RASL layer, RAOS and RAOSQ digital quadrature indicators (digital quadrature oscillators), about which you can read in detail in previous articles: Improved modification of the moving average - RAMA indicator against the SMA New trend indicator of the RASL layer and a trading strategy based on it New technical indicator - RAIX layer oscillator and building a trading strategy RAOS and RAOSQ quadrature indicators - more information for the trading strategy Stages of forming the RASL + RAOSQ system 1. Displaying the basic dynamics of the gold price Figure 1 shows: gold price quotations (Daily as of January 16), the trend...
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Hello, dear colleagues. Today I bring to your attention the third lesson of the series "Price Action Trading Methods". And today I will begin the story of simple Price Action price patterns. Why do I begin? Because I cannot discuss them all in one lesson. But before we proceed directly to the patterns, let's define the basic concepts. Pattern is an English word the meaning of which is translated in Russian as "pattern", "system", "structure", "principle", "model". Because of its use in various Western disciplines and technologies, it has entered the Russian-speaking environment as a specific term in several spheres of activity at once. Thus, we can say that Рrice Astion is a trade...
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[info_block align="right"]When used with other trading indicators, it can definitely help improve the accuracy of your trading strategy.[/info_block] VWAP is an intraday calculation used mostly by HFT algorithms and institutional traders to estimate where stocks are trading relative to the average volume for the day. Intraday traders also use VWAP to estimate market direction and filter trading signals. Before using VWAP, you need to understand how it is calculated, how to interpret and use it, and what the disadvantages of this tool are. How is VWAP calculated? VWAP (Volume Weighted Average Price) is an abbreviation for volume weighted average price. At first glance you might think that VWAP is...
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Trend - in the sphere of financial markets it is a direction of price movement of the chosen instrument: growth or decline in the price of an asset. Types of Trends Trend Phases Trend Strength Drawing a Trend Line Rule of Numbers Difficulties of Trading by Trend Line Traded correctly Classic Strategy Method of Determining Trend by Peaks and Declines by Dow Theory Trend Indicators Trend Indicators Advantages and Disadvantages of a Trend Strategy There are three main types of trends: an uptrend (bullish trend, up-trend), which shows price growth in a certain period of time. On the chart it looks like a series of price lows, each higher than the previous one. a downtrend (bear trend, down-trend), which tells...
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[info_block align="right"]The Fibonacci time zone indicator allows predicting potential price reversal points on the chart.[/info_block] Indicators based on the Fibonacci number sequence have long been popular with traders. Today we will talk about the most controversial and doubtful indicator - the Fibonacci time zones. What is the difference between Fibonacci time zones and other indicators? Like other Fibonacci tools, the time zone indicator is based on a numeric sequence where each successive term is the sum of the previous two: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, etc. The main difference between the time zones and other Fibonacci indicators is that they are based not on price movements, but on...
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