Technical analysis
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Like other types of graphical triangles ("Pennant", "Wedge", etc.), the figures of technical analysis "Upward Triangle" and "Downward Triangle" are more price models of continuation of the trend, rather than reversal patterns. Trading signals of technical analysis figures "Triangles - ascending and descending" The distinguishing feature of ascending and descending triangles from symmetrical and expanding triangles is the presence of a clearly defined horizontal support line (in a descending triangle) or resistance (in an ascending one). In the ascending triangle price pattern, there is a pattern of gradual decrease in the waves-corrections after the price rebounds from the horizontal resistance level. After the breakdown of this level, the price moves towards the main trend at a distance equal to the height of the triangle base. In the "Downtrending Triangle" pattern.
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The figure of technical analysis "wedge" is similar to the price models "Vympel" and "Triangle" by its form and time of formation. But still "wedge" has its own features: - In contrast to the figure of "Vympel", "Wedge" does not have a pronounced preceding trend. - After the price leaves "Klin" consolidation zone, when breaking through the price pattern it is impossible to detect the final destination of the price movement, we can only speak about the continuation of the initial trend. - Another distinctive feature of the "Wedge" price pattern is its more noticeable slope angle to the main movement. It means the correction pullback, following the logic of the "wedge" will be deeper than, for example, for "Pennant" or "Flag". Thus.
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Price pattern "Rectangle" is a classic example of price consolidation in a narrow range before further market movement in the chosen direction. Rectangle" price pattern, located in the consolidation area, as a rule, has clear and pronounced horizontal support and resistance levels (without updating of maximums and minimums). In the stock markets such price pattern appears at the moments when traders and investors expect the release of important news, the results of which they doubt. After the publication, confirming the expectations of speculators, they continue to move the price in the previously chosen direction. Working out of the technical analysis pattern "Rectangle" After breaking through the resistance level in the bullish price pattern "Rectangle" the price passes the distance equal to the height of the rectangle. In a bearish price pattern...
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The figure of technical analysis "Pennant" is a frequent model of continuation of a trend on various stock exchanges, including . In its essence, "Pennant" is similar to the continuation pattern "Flag" with the only difference that it has the form of a converging triangle. This figure of technical analysis is a corrective movement with a narrowing range after a strong trend up or down. In fact, this is a period of fixing profits before a new breakthrough in prices. Trading signals of the figure of technical analysis "Pennant". If the trend is ascending, the algorithm of working with the figure "Pennant" is as follows: when breaking through the resistance line we open a long position with Stop-Loss just below the minimum point of correction and the potential target, equal to the movement of the initial trend is up. At.
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The technical analysis pattern "Flag" appears on price charts frequently and on almost all timeframes. It can be identified both on five-minute candles and on the weekly chart. The "Flag" pattern most often emerges after a strong price movement of the selected asset in one direction and represents a narrow consolidation zone, usually in the opposite direction from the initial impulse. The components of the figure of technical analysis "Flag" In the figure "Flag" distinguish: "flagpole" - the initial price impulse, and the "flag" itself - consolidation, a narrow price channel bounded by support and resistance levels. In most cases the length of "flag" is one third of the length of "flagpole". Trading signals of the technical analysis figure "Flag" The figure...
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Let's continue to get acquainted with graphical technical analysis. Last time we talked about big formations - trend reversal patterns. Today I will tell you about the peculiarities of trend continuation patterns - "Flags" and "Pennants". Figures "Flag" and "Pennant". - Uncomfortable sideways The "Flag" and "Pennant" figures can be formed both after a rise and after a fall. There is often a question about the interpretation of these figures of technical analysis, because it is easy to confuse them in the process of their formation. I never try to determine on a live chart in the moment, which is forming now - the "Flag" or the "Pennant"? I start from the philosophy of formation of these figures. "Flag" or "Pennant" - is a tedious little sideways pattern in which...
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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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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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