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Technical analysis

Andrew’s Pitchfork: 3 Points Make a Channel

Andrew’s pitchfork uses three points to create a channel. Pitchfork lines act a resistance and support for the price. Pitchfork’s drawing is subject to personnal taste and can be controversial among traders Andrew’s Pitchfork, also known as the International Line Study, is a technical analysis technique that uses three trend lines to display areas of […]

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Volatility indicators

Bollinger Bands Width & %B: Tactics

Both the Bollinger Bands Width and the Bollinger Bands %B are indicators based on the Bollinger Bands. The Bollinger Bands Width indicator shows the width of the bands (how wide they are at any moment). The Bollinger Bands %B indicator shows the relative position of the price within (or outside) the bands. Bollinger Bands Width […]

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Technical analysis

Breakout: The Market Tells You To Take a Trade

Breakout are trade opportunity which trigger when an asset’s price above or below a resistance or support level. It signals it can be time to open a position. It also helps frame where you should / could place your stop loss. What is a breakout? Breakout in trading means the movement of prices beyond support […]

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Technical analysis

Trade with the trend: Effective & Simple

Trend trading, also known as trend following, is a trading strategy based on the assumption that the current trend is likely to continue and the stock will also move in the same direction. There are three types of trend: uptrend, downtrend and sideway. An uptrend is there when the prices make new highs. Conversely, prices […]

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Chart types

Line Chart: Why is it useful for traders?

A line chart is the simplest and most basic type of stock chart used to analyze financial markets. The line chart only plots the closing price of the underlying security. It has a line connecting the dots created by the close price. A line chart is the simplest and most basic type of stock chart […]

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Technical analysis

Backtesting: The method to check your strategy

Backtesting is a simulation of the past. You take the data from the past and use it to predict what would have happened if you had used a certain trading strategy. A trading system is a set of rules that tells you when to buy and sell. A backtest is a way to see if […]

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Chart types

Renko Chart: A way to capture big moves

Charts are important in forex trading. It is possible to effectively trade forex today without using a chart. One of the most popular forex charting styles is the Japanese chart, Renko. Renko charts are great in analyzing the market from a completely different point of view. If you intend to view raw price action, then […]

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Chart types

Point and Figure (P&F) Chart: Complete Guide

If the price of an asset moves up by a certain amount, then it will form an X. If the price of an asset moves down by a certain amount, then it will form an O. Xs and Os stack on top of each other, and will often form a series of Xs or Os. […]

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Chart types

Candlestick Chart: All traders shoud know

Candlestick charts are very popular. It shows 4 prices for every fixed period: Open price Close price Highest price for the session Lowest price traded during the session Traders use the candlestick chart to determine where price is heading based on previous patterns. What is a candlestick chart? Simply put, a candlestick chart is a […]

Categories
Chart types

How to best use the Kagi Chart?

Kagi chart is a kind of chart that tracks the price movements of a security. While price and time appear on traditional charts, with Kagi charts, only the price is important. A Kagi chart plots price like a snake, continuously. When the price falls, the line appears red color. And when the price rises, the […]