Forex Candlesticks: A Complete Guide for Forex Traders

Part II - 10 Minute/Day Trading Strategy

Part II - 10 Minute/Day Trading Strategy
Access Part I here: https://www.reddit.com/Forex/comments/h0iwbu/part_i_my_10_minuteday_trading_strategy/
Welcome to Part II of this ongoing series. How many parts will there be? No idea. At least 4-5, I guess. I'd rather have this broken down into digestible chunks than just fire hose you with information.
Part I was really just a primer. If I'm using the whole baking a cake analogy, then in Part I we covered what kind of cake we're baking. I will not cover in this post where we look for entries and exits, that's coming next. Part II is going to cover what ingredients we need and why we need those ingredients in greater detail.
What Kind Of Strategy Is This Again?It's my 10 minutes per day, trading strategy. I think the beauty of this strategy is that it allows you to take a good number of trader per week without having to commit an inordinate amount of time to the screens. This is both a mean reversion and trend-continuation based strategy. It is dead simple to learn and apply. I'd expect a 10 year old to be able to make money with this.
The List Of Ingredients & Why We Use These Particular Ingredients
*I will have an image at the end of the post showing a textbook long and short setup*
Bollinger Bands: Bollinger Bands (BB) have a base line (standard is the 20SMA, which is also what we will use for this strategy) and two other trend lines (known as the upper Bollinger band [UBB] and lower Bollinger band [LBB]) plotted 2 standard deviations away from the 20SMA. The idea behind BB is deviously simple - the vast majority of price action, approx. 90%, takes place in between the two bands. In other words, when price trades off the UBB or LBB, you could consider prices to be overbought/oversold. However, just because something is OVERbought does NOT mean its run is OVER. Therefore we need additional tools to make sure we are using the BB as effectively as possible. TLDR: BB help contextualize where to look for our technical setups using this strategy. Finding the candle/bar pattern is not enough. We need to make sure the setup is in the 'right' part of the chart. We accomplish that using the BB.
Stochastic Oscillator: The Stochastic Oscillator (Stochs) is a secondary momentum indicator. Because it is an oscillator that means the signals it generates are range-bound between 0 and 100. There are tons of momentum indicators out there. Theoretically you could swap out the Stochs for RSI or MACD. My hunch is that you won't see a measurable statistical difference in performance if you do. So why Stochs? Because I like the fact you have the %K and %D lines (you can think of them as moving averages) and the fact that the %K and %D lines crossover is a helpful visual aid. Like any other momentum indicator, the Stochs will generate overbought and oversold signals. We use the Stochs to help back up what the BB are telling us. If price is trading at, or even broken out of, the UBB and Stochs are also veeeery overbought that can be potentially useful information. It doesn't mean we have a trade necessarily, but it is a helpful piece of data.
Fibonacci Retracement & Extension Tool: This tool is OPTIONAL. The only reason I use this tool for this strategy is to integrate a mechanistic means of entry and exit. In other words, we can use fibonacci levels to place limit orders for entry and profit taking, and a stop order to get us out for our pre-defined risk allocation to each particular trade. If you DON'T want to use the fibs, that is perfectly okay. It just means you will add a more discretionary layer to this strategy
Candlestick/Bar Patterns: There isn't a whole lot to say here. We look for ONE formation over, and over, and over again. An indecision bar (small body, doesn't close on its highs or lows) followed by the setup bar which is an outside bar or an engulfing bar. It doesn't particularly matter if the setup bar is an engulfing bar or outside bar. What matters is that for a long trade the setup bar makes a HIGHER HIGH and has a HIGHER CLOSE relative to the indecision bar. The opposite for a short trade setup. The bar formation is what ultimately serves as the trigger for placing orders to take a trade.
*MOVING ON* Now We Get Into The Setup Itself:There are 3 places where we look for trades using this strategy:
  1. Short off the UBB (Here we want to see Stochastics overbought and crossing down. Bearish divergence is even better)
  2. Long off the LBB (Here we want to see Stochastics oversold and crossing up. Bullish divergence is even better)
  3. Long/Short off the Middle Bollinger Band (Here if you are looking for a short trade off the MBB you ideally want Stochs overbought. Vice versa for a long trade. NOTE: Often when taking trades off the MBB, Stochs WON'T go overbought/oversold. Because this doesn't happen often, I don't let it stop me from taking trades off the MBB.)
The actual setup is very simple and straightforward. We look for our candle/bar formation in conjunction with points 1 through 3 from the above.
There will be other nuances I will cover in terms of how to make the strategy more effective in Part 3. For example, I will go into much more detail about how the shape of the BB can tell us a lot about whether a currency pair is likely to reverse or not. I will also cover how to gauge the strength of the setup candle and a few other tips and tricks.
Technical Nuances: You can overlay a lot of other traditional technical analysis on top of the above. For example you can look for short trades off the UBB in conjunction with a prior broken support level that you now expect to be working overhead resistance. If you want to go further and deeper, of course you can. Note: the above is about as far as I went when overlaying other kinds of analysis onto this strategy. I like to keep it simple, stupid.
TEXTBOOK LONG TRADE OFF LBB:

https://preview.redd.it/e06otysgsh451.png?width=2820&format=png&auto=webp&s=101b3eed1b42512d639644bcc096d1026e558f17

TEXTBOOK SHORT TRADE OFF UBB:
https://preview.redd.it/yfg02yjhsh451.png?width=2820&format=png&auto=webp&s=18b427995f3dcecb22e1ae7f15cd5b3cd53c18e4
TRADE OFF MBB:
https://preview.redd.it/8kvzknaish451.png?width=2820&format=png&auto=webp&s=2f1e6113475193e8b812bface880a77e82ad7eeb

And that's a wrap for Part II.
submitted by ParallaxFX to Forex [link] [comments]

Naked Forex Noob

TL;DR Just got into Naked Forex trading but I am stuck on backtesting. Can't correctly identify critical zones (supp and res zones) and I haven't found the criteria for my trading system (wammies and moolahs) on the charts that I have back tested. Any advice?

Hi there, I started learning about forex awhile back from a friend and he began to show me the basics while also directing me to babypips for the free course they put you through. Although I got into all of this awhile back, I have been stuck in the stages of finding my own strategy and backtesting it.
At first, I was very much into using the basic indicators (RSI, MACD, SMA/EMA) but then I came across a recommendation in this sub to read 'Naked Forex' and I was hooked. Not in a sense that now I knew exactly what my strategy was and how to implement it, but hooked in the idea of being able to read a chart and make trades based on price action and reversals.
Of course while reading the book, understanding the concepts, and looking at all the examples of the different trading strategies i'm getting hyped in my mind to get to the backtesting stage to see if I can put this knowledge to somewhat of a test. Now here I am, staring at tradingview's daily and 4h charts from 2006 onward.
Here's where I get stuck.
I understand identifying critical support and resistance zones and it all made sense to me in the book, but as I am backtesting I find that the zones are either always changing or I can't figure out which ones are critical. On top of that, my trading system looks something like this (advice is welcome on how this could be improved or if you see any glaring "wtfs" in it)
I trade wammies & moolahs (market touches supp. or res. zone twice, second touch is lowehigher with a bearish/bullish candlestick printed on the 2nd touch) and use either a kangaroo tail or big shadow for confirmation to initiate the trade.
The buy/sell stop is set 8 pips above/below the bearish/bullish candlestick and the stop loss is placed below/above the first touch.
The profit target is the following zone.
There's a bit more criteria for the trade but that's the blueprint of it. I apologize if it either doesn't make sense or confuses you but even after sifting through months/years of backtesting data my eyes never caught any of this action happening in the zones I've identified.
Any help would be appreciated as I am a sponge and will soak in as much criticism and advice as I can.
submitted by VileKyleTM to Forex [link] [comments]

Naked Forex, anyone?

So I’ve been learning forex for a couple months now and playing around on my demo account with quite a bit of success. The technical route definitely seems to work best for me. I’ve read a couple books on naked trading, focusing on price action candlesticks without indicators, and I’m positive this is the route I will continue with once I go live by the end of summer.
I don’t know many people who do forex, so I was just curious if anyone has any tips to offer or even more books that I can look into. Any advice helps!
submitted by cari_chan to Forex [link] [comments]

GBP/USD POTENTIAL +3.4% UPSIDE

THE BRITISH POUND SURGES FROM THE ASHES WITH A BULL MARUBUZO, AFTER A DOJI DRAGONFLY CANDLESTICK, ON THE BACK OF STRONGER THAN EXPECTED CPI DATA, SIGNAL THAT UK CONSUMERS HAVE BEEN SPENDING, WHILE THE POSSIBILITY OF THE UK ECONOMY REBOUNDING DECENTLY, GIVEN ALSO THE POTENTIAL AVAILABILITY OF A UK MADE VACCINE READY TO BE DEPLOYED IN WINTER Q4.THE GBP/USD CHART HINTS TO FEW TECHNICAL POINTS THAT SUPPORT THE BUY SIGNAL IN THE BRITISH POUND: THE RSI(14) OSCILLATOR MOVES HIGHER ON A DOUBLE BOTTOM PATTERN, THE ICHIMOKU TENKAN LINE PROVIDES SUPPORT, WHILE ALSO HAVING MOVED THROUGH THE IKH KIJUN LINE AS A BUY SIGNAL, FURTHERMORE CLEARING OFF THE GBP/USD 1.2698 200 DAYS MOVING AVERAGE CAN EVENTUALLY GIVE A CONSISTENT BUY SIGNAL WITH CONCRETE MARKET POSSIBILITY OF CABLE MOVING TOWARD GBP/USD 1.30 IN A +3.0%.HAVING SAID THAT, WORTH TO NOTICE THAT IN THE LONGER TERM, A PERMANENT BUY SIGNAL FOR THE POUND WOULD REQUIRE A FLOOR EXCHANGE RATE OF GBP/USD 1.40 AND ABOVE, THEREOF A SHORT TERM UPSIDE MOVE +3.0% TO GBP/USD 1.30 DOES NOT PROVIDE A LONGER HORIZON FORECAST; IN SO A CONSISTENT CHANGE IN THE BRITISH WILL REQUIRE AN OVERALL LONGER TERM CHANGE IN MARKET POSITIONING AMONG ASSETS MANAGERS/INSTITUTIONAL INVESTORS AND LEVERAGED FUND THAT HAVE HEAVILY SKEWED POSITION SHORT ON GBP/USD. IN FACT FOR AN OVERALL 105 MOST RELEVANT FOREX MARKETS INVESTORS, 57 BETWEEN ASSETS MANAGERS/INSTITUTIONAL AND LEVERAGE FUNDS ARE CONSISTENTLY SHORT ON THE BRITISH POUND FOR AN OVERALL 128,805 CONTRACTS IN A TOTAL 180,969 CONTRACTS.

Technical Indicators

NameValueAction
RSI(14)60.081Buy
STOCH(9,6)76.362Buy
STOCHRSI(14)99.545Overbought
MACD(12,26)0.005Buy
ADX(14)25.732Neutral
Williams %R-6.794Overbought
CCI(14)101.9183Buy
ATR(14)0.0104Less Volatility
Highs/Lows(14)0.0092Buy
Ultimate Oscillator56.632Buy
ROC1.808Buy
Bull/Bear Power(13)0.0109Buy
Buy: 8 Sell: 0 Neutral: 1
Summary:STRONG BUY

Moving Averages

PeriodSimpleExponential
MA51.2595
Buy
1.2588
Buy
MA101.2557
Buy
1.2556
Buy
MA201.2484
Buy
1.2524
Buy
MA501.2442
Buy
1.2476
Buy
MA1001.2426
Buy
1.2522
Buy
MA2001.2704
Sell
1.2605
Buy
Buy: Sell:
Summary:BUY

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submitted by lucas8282 to STOCKMARKETNEWS [link] [comments]

Enhance Your Forex Capabilities With Price Action

Perhaps you are new in the forex trade and you have heard other traders talking about price action or PA and wondered what they were referring to; they are simply talking about forex charts in general but specifically the movement of actual prices. You will realize that, if you have a candlestick on the one hour timeframe you will end up with PA data worth an hour and if your candlestick has a five hour timeframe you will have 5 hours of PA data. This means that you need more PA data for you to have more accurate predictions; getting a daily candle therefore gives you more data to work with than someone who goes for smaller timeframes.
https://www.basicfinancecare.com/enhance-your-forex-capabilities-with-price-action.html
submitted by Jamespaul09 to u/Jamespaul09 [link] [comments]

I'm begging Reddit for help, real ACTUAL help. I'm dead in 10 hours. Let's see what Reddit(ers) can do.

As title says, I'm dead. This is a final notification from this reddit here: https://www.reddit.com/SuicideWatch/comments/f5sajn/suicide_is_not_selfish_depending_on_circumstance/ I deleted the original post so just get the context there. But to briefly summarize, I'm 26, US american studying abroad in Asia. It's easy to pay for college when the USD currency is stronger so that's that. My parents, my loving parents supported me for four years so I can graduate. I will not be graduating. Unknown to them, I've been keeping them as well as my wife and child in the dark. In the 2nd year of my course I failed miserably. I was contemplating suicide right then and there after I found out. Silly me of course thought that I could put if off, perhaps leverage my situation by making myself financially self-sufficient so I dabbed in the forex market for two years with great hopes. Failed. Technical analysis, fundamental analysis, price action, chart and candlestick patterns were worthless. I spent the last past weeks studying a special FX tool that could be considered a black-box but I no longer have time to confirm it. I'm out of time, more on that later. Tomorrow my parents find out if I graduate or not, obviously not.
So reddit title says it all as well as my previous post. Tonight I'm going to be drinking heavily, then put a bag over my head and that's that. Why I'm killing myself? Because I lied, I caused pain, misery. My parents fought tooth and nail, sent money to me through sweat and blood for me to graduate, get my diploma and start my life with my family but I failed them. They've complained more than once that times aren't getting easier, so me being alive doesn't change any of that. But that's not all. Two years dabbing in the most prestigious "profitable" market has failed me time and time again. Only now do I realize that the rabbit hole in the market goes much deeper than silly little charts. If I had more time, I'd be able to reap massive profits in such a short time span. To give you an idea, I took a $5k demo account and turned it into $27k in 6 days worth of trading. Not bad. I needed further study but it's no longer an option for me. I've costed my parents $40k and they lost 4 years of their life, their fragile life, time and money that they're never going to get back. So if I were you and you were reading this, I would refrain from posting anything along the lines of "Oh, it's okay. Tough love. Failure you is better than no you at all. Think about your daughter." Your comment will just get shrugged off like yesterday's news. I need real help redditors and I promise to pay you back even double what it is you spend but I need real help.
So I need a ticket back to the US and a job, one that at least pays min. $30k/yr and most likely a place to stay. If I can have that, all will be good. I'll be off my parent's budget so no more strain to them, I'll be able to take care of my family. It won't bring back those wasted 4 years, but at the least I'll be alive to do what a father must. Other option, I could "sell" this FX tool. This tool isn't downloadable anywhere on the internet anymore. I'm not the programmer but I made contact with the programmer and it's now receiving quotes via FIX api meaning no fake broker feeds, you're getting the real aggregate feed. There's three anomalies I've documented that pinpoints when and where a turning point in the market happens, only for the 28 major currency pairs. Last option, I die. Well, let's see what Reddit(ers) will say in the next 10 hours. This'll be interesting. And for all intents and purposes, if I don't reply back after the allotted 10 hours I'm obviously dead. I'll keep this post up as a reminder to ALL who ask for help on Reddit whether or not someone will or can help you. I'll be online until then. Post's up.

P.S. Why suicide of all things? Because it's for atonement. It may not be atonement in your eyes, in my parent's eyes, in my wife's eyes, in my daughter's eyes, but it's more than atonement for me, so that's all that matters.
submitted by forex_end_game to SuicideWatch [link] [comments]

List of Resources for New/Aspiring Traders

This is a post I made about 5 years ago and I'm reuploading it for visibility. Check back often as this will be getting reformatted and edited over the coming days to make sure it's upto date.
Price Action Attack Map N/A ------------------------------
http://www.forexfactory.com/showthread.php?t=520423 FXLester's guide to price action
http://www.forexfactory.com/showthread.php?t=2331 James16's guide to price action
http://forums.babypips.com/free-forex-trading-systems/58037-price-action-matters.html "Price Action That Matters by Aaron Kruger
https://www.forex4noobs.com/ Forex 4 noobs price action battle plan!
GAMES N/A ------------------------------------------------------
http://chartgame.com/ Personally, i think this is pure genius! I love it, it's an amazing way to brush up on your chart skills and it's actually pretty cool to see how things went. It throws a random chart at you and you have to day trade it, it'll tell you how you did versus a buy & hold strategy and... well it's just really really good!
BLOGS N/A -------------------------------------------------------------------------------------------
https://jkonfx.com/ Technical & fundamental news on currencies. I would advise newer traders not to trade solely on external opinions because that won't cement your own methodology or reasons for trading. Excellent website for if you want an overview of the markets and daily reports. Also includes a trading journal and a lot of media attention.
http://www.stocktradingtogo.com/ A good blog for new traders/ investors. Lot of ‘top 10 lists’ to flick through.
http://www.tradingheroes.com/ This is absolutely amazing! I can't put a value on this! It's one of the best gems of the internet. Podcasts interviewing successful traders, some are notable such as 50pips, Walter Peters & Chris Kapre.
http://www.nobrainertrades.com/ Found this when doing the podcast link below, it's actually really good high quality stuff. Blog based with plenty of educational material.
http://www.chatwithtraders.com A weekly podcast that interviews successful traders. Thank you gumballfrank for this.
http://ftp.traderkingdom.com/ Not had much of a chance to check this out, but first impression are nice!
http://www.forexlive.com Heavily oriented towards fundamentals. Good news portal submitted by WinterTires thanks!
http://www.tradeciety.com/ Heavily visually oriented perfect for beginners! Lots of infographics and info. Submitted by gumballfrank
http://orderflowforex.com/ A blog that focuses on Personal Development as a trader. Absolutely essential. It'll help to focus you on your journey to trading omnipotence!
ONLINE SCHOOLS & LEARNING PORTALS N/A -------------------------------------------------------------------------------
http://theinnercircletrader.com/Tutorials.htm Best tutorials in the world by a secret trillionaire.
http://www.tradimo.com A superb website dedicated to training people to become better investors traders for free.
http://www.babypips.com One of the best free online schools which tracks your progress and teaches you heaps on information. The forum is the gem, where many people keep trade journals and put up their strategies. Don't copy them but borrowing concepts and ideas is good.
http://www.forexpeacearmy.com/forex-forum/forex-military-school-complete-forex-education-pro-banke Unbelievably thorough! Education on forex trading, literally everything is covered.
http://stockcharts.com/school/doku.php?id=chart_school Very wide ranging resource that focuses mainly on technical analysis.
http://www.investopedia.com This should be a given, but seriously – this place is the Wikipedia of trading/ investing.
http://www.swing-trade-stocks.com/swing-trading-basics.html Actually a really good learning resource that mentions psychology and momentum among other things.
http://thepatternsite.com/Psychology.html Really good information on trading psychology – something that often goes unnoticed with beginners.
http://www.finvids.com/ Cool little website with videos on candle patterns and chart patterns.
http://www.fxacademy.com/ Appears to be a free trading academy. Not tried it personally, but it looks really good. With plenty of videos for visual learners.
http://forex-strategies-revealed.com/intro PEOPLE IN NEED OF A STRATEGY CHECK THIS OUT List of strategies, literally everyone you'll ever need.
ARTICLES OF INTEREST N/A -----------------------------------------------------------------------------
http://orderflowforex.com/2014/11/trading-books-proper-orde There's a lot of information out there, it's overwhelming. You might think "Where the hell do I start?!" well here's your answer! The books you have to read... and in what order! Super important for beginners.
http://www.stocktradingtogo.com/2009/05/14/trading-psychology-stages-investor-emotions/ An article on the ’14 stages of investor emotions’ knowing who you are and what is happening to you can lead you to make more calculated decisions.
http://fourhourworkweek.com/2014/10/15/money-master-the-game/ Tim Ferris, author of The 4 Hour Work Week interviews Tony Robbins to find out the success behind the worlds best investors. Talking about morning routines, peak performance & mastering money!
http://www.tradeciety.com/category/trading-blog/ Best trading & investing blogs and articles as picked by tradeciety.com
http://www.forextradetracker.com/blog/understanding-forex-jargon-a-glossary-for-beginners Forex jargon glossary for beginners. Submitted by gumballfrank
http://orderflowforex.com/order-flow-trading/what-is-order-flow-trading/ What is order flow trading? Essential for beginners
FORUMS N/A -------------------------------------------------------------------------------------------------
http://www.forexpeacearmy.com/ Excellent learning resource, main focus is to help avoid people getting scammed.
http://www.trade2win.com/boards/ Massive forum for beginners to talk to more experienced traders – very active community.
http://www.forexfactory.com/forum.php Much like trade2win but more focused towards forex.
http://forums.babypips.com/ Another forum dedicated to forex traders. You'll find people keeping good strategies here, list them via most views first to find the real gems.
MISCELLANEOUS RESOURCES N/A --------------------------------------------------------------------
http://www.forexfactory.com/showthread.php?t=520423 Some beast called Lester showing you how it is! Read this!
http://theinnercircletrader.com/Tutorials.htm If you watch all of these you're already a millionaire!
http://www.forex-warez.com/Free%20Download/ Every book you could ever want on trading, investing, market psychology, strategies etc.
http://www.forextradetracker.com/ SUPER IMPORTANT This website is paramount to your success, still in development but will provide users with an easy way to document trades. Success is determined by your willingness to follow through with the boring bits so keep this one in your bookmarks.
http://www.hotcandlestick.com/candlestick-pattern-flashcard-game.html Super useful Flashcard game that helps you to remember important candlestick patterns.
http://www.hotcandlestick.com/forex_charts.htm Important candlestick patterns that have appeared on the major currency pairs. Good for a quick overview.
http://www.freeonlinetradingeducation.com/chart-school.html Website offering visual illustration & practical applications of popular candlestick patterns.
http://www.hotcandlestick.com/candles.htm Glossary of candlestick patterns.
http://www.incrediblecharts.com/topic/Technical_Analysis Another resource for learning technical analysis. Not particularly thorough but useful for basic concepts.
http://www.forexschoolonline.com/ Market overviews and trading opportunity videos provided, along with educational videos and the like.
http://www.tradersdna.com/education/ Another trading education site focusing more on forex.
submitted by Dannyboi93 to forexit [link] [comments]

[R] Understanding The Price Movement Of Cryptocurrency Using Candlestick Charts

Having a basic knowledge of candlestick charts is a great starting point for anyone who is really interested in making a profit, rather than just playing games or speculating with their hard earned money in the cryptospace. The same candlestick that many financial institutions use to build their positions on the forex market is that the same candlestick traders also have in cryptocurrency exchanges.
In the 18th century, candlestick charts were been invented and developed. The earliest reference to a candlestick chart being used in financial markets was found in Sakata, Japan, where a rice merchant named Munehisa and traders use the candlestick to trade ojima rice. So, particularly for newbies that don't know about these candlesticks, it's not a new thing. The candle may be red or green, white or black, some few exchanges may allow it to be defined at which they want to call them. Such candles reflect an activity that is bullish or bearish.
Candle sticks can help anyone identify the next price action movement of a crypto asset, hence there are different candle stick patterns that will be encountered in exchanges that will determine their decisions. These candles are formed due to pressure or force of movement of price which result to form a full candle with or without sticks/wicks. The sticks are formed in the candle because of continuous force pushing or pulling the price of the crypto asset. (here is an illustrative representation of these candles for easy understanding)
Why Is It A Must To Use Candlestick Patterns?
  1. Crypto asset price movements are easier to understand to know where the trend actually moves into either bear or bullish area.
  2. Recognizing the candle pattern and how they occur in that crypto asset's price history is easier.
  3. Candlestick charts unveil a dynamic information in every areas of the price movement with respect to time. (Open, close, high and low) compare to other patterns such as the graph or line charts.
Is this Candlestick Patterns Used By Many?
Due to the volatility of crypto instrument, most traders do not tend to read the chart before trading for the following reasons.
  1. Greed
  2. FeaDoubt
  3. Lack of discipline
  4. Lack of patience
Bottom Line
Understanding candlestick patterns is a key factor to managing those portfolios in the crypto space for maximum returns of investment. Candlesticks helps traders to detect trend reversals and price action breakouts in the market which helps to build a strong and effective trading strategy.
submitted by fikridie to statistics [link] [comments]

How to correctly draw support and resistance levels

How to correctly draw support and resistance levels
(This post is mainly for beginners in Forex that are struggling in support and resistance levels, although you more experienced guys might also learn a thing or two, this also doesn't go over how to use them to enter trades, although I could make a post about it if it is requested)

How to correctly mark support & resistance in most markets

First thing to realise is that s&r levels are not really levels, they are zones, sometimes the price just misses the level and other times it goes just over, but it still reverses/breaks out off the general level. You will rarely find the exact level of where the price will reverse. There is no exact criteria on what makes a level significant levels, but you will eventually get better as you pipe in more experience into the market.

What even is a support/resistance zone?
Simply put a support or resistance zone is a price the market has had experience with before. In the book "Naked Forex" Alex Nekritin puts perfectly that s/r zones are just market scars. Market scars that the price has visited before and will try to stay away from as best as it can (but sometimes breakouts occur, more on that later).
Do zones expire?
This is very subjective, some say the older the level the less valid it may be, and others vice versa. I personally believe they don't expire and significant zones stay valid unless disapproved by appropriate price action. Your answer may be completely different, everyone's experience with the market is different
What are these "breakouts"?
Breakouts are when the price doesn't respect the level. Most of the time the price respects a level and reverses off it, however that can only happen for some time, (if this happens for a period of time where the price is bouncing off a support and resistance it is known as consolidation). Of course it can't keep trading in a range forever, breakouts have to happen. Breakouts mostly happen within high volatility, either from news or just the time the market is open, however the price can also just wonder through the zone, creating a less volatile breakout. You may also experience the price going over a zone and then returning into it;

On chart 1 below you can see a bland chart, just load up any trading software and you should see something like this. We can see the price recently has been on a decline on the last four candles.
EURUSD H1 (Chart 1)
To the untrained trader, this looks like guess work to place a good significant level. Wicks flying everywhere, this is where tip #1 comes in.

Tip #1: Change your candlestick chart into a line graph
EURUSD H1 (Chart 2)
This very simple tool removes all of the wick clutter and just gives a nice line of how the price has been moving (Keep in mind this only shows the close of the time frame and doesn't include wicks). Thus it makes marking s/r lines way way easier. Just off this you can place lines where the price has reversed, don't add too many as that could also be too bad for you (check tip #2)
Another thing to keep in mind is that if a price curves and reverses, this usually shows a stall on the zone and is an important level to manage. (Check Chart 3)
On Chart 3 you can see some levels I've added in that respond to the recent price on the line chart:
EURUSD H1 With S/R (Chart 3)
After you've added your s/r you can switch back to normal candle sticks to further evaluate your zones.
EURUSD H1 With S/R Candlesticks (Chart 4)

Tip #2: Don't over-add unnecessary levels
This mostly occurs if you don't have patience with the market and want to rush into a trade. Don't try and scavenge for any little s/r zone as they could easily end up failing if they haven't been tested and confirmed. It will also prevent you from finding any valuable trades.
You don't want your chart looking like this, where would you even start looking for an entry?
Jumble of messy lines
Tip #3: Draw major zones on higher time frames
Say you enter your trades mostly on H4, draw your major zones on the D1 chart. As well as this you can draw minor zones in time frames smaller than your usual one, like from H4 to H1.
Just a little tip you could keep in mind.

Those are just three tips that really help me out when drawing my s&r zones (they might not work out for you but it's worth giving them a shot) and I have tried making this post as beginner friendly as possible, so I really hope you all learned something from this post.

This post was heavily inspired by Naked Forex, you can find a PDF of it here
Edit: Typos
submitted by indicasFinest to Forex [link] [comments]

[educational] Technical analysis, patterns, and charts analysis for the day trader

[educational] Technical analysis, patterns, and charts analysis for the day trader
Chart patterns form a key part of day trading. Candlestick and other charts produce frequent signals that cut through price action “noise”.
The best patterns will be those that can form the backbone of a profitable day trading strategy, whether trading stocks, cryptocurrency of forex pairs.
Every day you have to choose between hundreds of trading opportunities. This is a result of a wide range of factors influencing the market. Day trading patterns enable you to decipher the multitude of options and motivations – from hope of gain and fear of loss, to short-covering, stop-loss triggers, hedging, tax consequences and plenty more.
Candlestick patterns help by painting a clear picture, and flagging up trading signals and signs of future price movements. Whilst it’s said you’ll need to use technical analysis to succeed day trading with candlestick and other patterns, it’s important to note utilizing them to your advantage is more of an art form than a rigid science.
You have to learn the power of chart patterns and the theory that governs them in order to identify the best patterns to supplement your trading style and strategies.

Use In Day Trading

Used correctly trading patterns can add a powerful tool to your arsenal. This is because history has a habit of repeating itself and the financial markets are no exception. This repetition can help you identify opportunities and anticipate potential pitfalls.
RSI, volume, plus support and resistance levels all aide your technical analysis when you’re trading. But crypto chart patterns play a crucial role in identifying breakouts and trend reversals. Mastering the art of reading these patterns will help you make smarter trades and bolster your profits, as highlighted in the highly regarded, ‘stock patterns for day trading’, by Barry Rudd.

Breakouts & Reversals

In the patterns and charts below you’ll see two recurring themes, breakouts and reversals.
  • Breakout – A breakout is simply when the price clears a specified critical level on your chart. This level could by any number of things, from a Fibonacci level, to support, resistance or trend lines.
  • Reversal – A reversal is simply a change in direction of a price trend. That change could be either positive or negative against the prevailing trend. You may also hear it called a ‘rally’, ‘correction’, or ‘trend reversal’.

Candlestick Charts

Candlestick charts are a technical tool at your disposal. They consolidate data within given time frames into single bars. Not only are the patterns relatively straightforward to interpret, but trading with candle patterns can help you attain that competitive edge over the rest of the market.
They first originated in the 18th century where they were used by Japanese rice traders. Since Steve Nison introduced them to the West with his 1991 book ‘Japanese Candlestick Charting Techniques’, their popularity has surged.
Below is a break down of three of the most popular candlestick patterns used for day trading.

Shooting Star Candlestick

This is often one of the first you see when you open a chart with candlestick patterns. This bearish reversal candlestick suggests a peak. It is precisely the opposite of a hammer candle. It won’t form until at least three subsequent green candles have materialized. This will indicate an increase in price and demand. Usually, buyers lose their cool and clamber for the price to increasing highs before they realize they’ve overpaid.
The upper shadow is usually twice the size of the body. This tells you the last frantic buyers have entered trading just as those that have turned a profit have off-loaded their positions. Short-sellers then usually force the price down to the close of the candle either near or below the open. This traps the late arrivals who pushed the price high. Panic often kicks in at this point as those late arrivals swiftly exit their positions.

https://preview.redd.it/gf5dwjhbrdh31.png?width=300&format=png&auto=webp&s=437ff856bfd6ebc95da34528462ba224d964f01f

Doji Candlestick

One of the most popular candlestick patterns for trading forex is the doji candlestick (doji signifies indecision). This reversal pattern is either bearish or bullish depending on the previous candles. It will have nearly, or the same open and closing price with long shadows. It may look like a cross, but it can have an extremely small body. You will often get an indicator as to which way the reversal will head from the previous candles.
If you see previous candles are bullish, you can anticipate the next one near the underneath of the body low will trigger a short/sell signal when the doji lows break. You’ll then see trail stops above the doji highs.
Alternatively, if the previous candles are bearish then the doji will probably form a bullish reversal. Above the candlestick high, long triggers usually form with a trail stop directly under the doji low.
These candlestick patterns could be used for intraday trading with forex, stocks, cryptocurrencies and any number of other assets. But using candlestick patterns for trading interpretations requires experience, so practice on a demo account before you put real money on the line.

https://preview.redd.it/4yo650lcrdh31.png?width=300&format=png&auto=webp&s=b2aa3cdeef23e44e1e3e3047bbe2604fce0a4768

Hammer Candlestick

This is a bullish reversal candlestick. You can use this candlestick to establish capitulation bottoms. These are then normally followed by a price bump, allowing you to enter a long position.
The hammer candlestick forms at the end of a downtrend and suggests a near-term price bottom. The lower shadow is made by a new low in the downtrend pattern that then closes back near the open. The tail (lower shadow), must be a minimum of twice the size of the actual body.
The tails are those that stopped out as shorts started to cover their positions and those looking for a bargain decided to feast. Volume can also help hammer home the candle. To be certain it is a hammer candle, check where the next candle closes. It must close above the hammer candle low.
Trading with Japanese candlestick patterns has become increasingly popular in recent decades, as a result of the easy to glean and detailed information they provide. This makes them ideal for charts for beginners to get familiar with.

https://preview.redd.it/7snzz8qdrdh31.png?width=300&format=png&auto=webp&s=f83ff82f0980dd30c33bc6886ae7e7ed3a98b72f

More Popular Day Trading Patterns

Using Price Action

Many strategies using simple price action patterns are mistakenly thought to be too basic to yield significant profits. Yet price action strategies are often straightforward to employ and effective, making them ideal for both beginners and experienced traders.
Put simply, price action is how the price is likely to respond at certain levels of resistance or support. Using price action patterns from pdfs and charts will help you identify both swings and trendlines.
Whether you’re day trading stocks or forex or crypto with price patterns, these easy to follow strategies can be applied across the board.

Zone Strategy

So, how do you start day trading with short-term price patterns? you will likely employ a ‘zone strategy’. One obvious bonus to this system is it creates straightforward charts, free from complex indicators and distractions.

https://preview.redd.it/7e5x37zerdh31.png?width=300&format=png&auto=webp&s=2098a4c9df4a4556c3024cec1c176ce50c9806c0

Dead Zone

This empty zone tells you that the price action isn’t headed anywhere. There is no clear up or down trend, the market is at a standoff. If you want big profits, avoid the dead zone completely. No indicator will help you makes thousands of pips here.

The Red Zone

This is where things start to get a little interesting. Once you’re in the red zone the end goal is in sight, and that one hundred pip winner within reach. For example, if the price hits the red zone and continues to the upside, you might want to make a buy trade. It could be giving you higher highs and an indication that it will become an uptrend.
This will be likely when the sellers take hold. If the price hits the red zone and continues to the downside, a sell trade may be on the cards. You’d have new lower lows and a suggestion that it will become a downtrend.

The End Zone

This is where the magic happens. With this strategy, you want to consistently get from the red zone to the end zone. Draw rectangles on your charts like the ones found in the example. Then only trade the zones. If you draw the red zones anywhere from 10-20 pips wide, you’ll have room for the price action to do its usual retracement before heading to the downside or upside.

Outside Bar At Resistance Or Support

You’ll see a bullish outside bar if today’s low exceeded yesterdays, but the stock still rallies and closes above yesterday’s high. If the complete opposite price action took place, you’d have yourself the perfect bearish example.
Unfortunately, it isn’t as straightforward as identifying an outside candlestick and then just placing a trade. It’s prudent to find an outside day after a major break of a trend.

https://preview.redd.it/egb0lp6grdh31.png?width=300&format=png&auto=webp&s=b0170eceea5006464e5832bc3a9083c72ee677ad

Spring At Support

The spring is when the stock tests the low of a range, but then swiftly comes back into trading zone and sets off a new trend. One common mistake traders make is waiting for the last swing low to be reached. However, as you’ve probably realized already, trading setups don’t usually meet your precise requirements so don’t stress about a few pennies.

https://preview.redd.it/q82lap2hrdh31.png?width=300&format=png&auto=webp&s=9e40f0bc25c2df06a1d93edb68b293c858a32592

Little To No Price Retracement

Put simply, less retracement is proof the primary trend is robust and probably going to continue. Forget about coughing up on the numerous Fibonacci retracement levels. The main thing to remember is that you want the retracement to be less than 38.2%. This means even when today’s asset tests the previous swing, you’ll have a greater chance that the breakout will either hold or continue towards the direction of the primary trend.

https://preview.redd.it/ey997b2irdh31.png?width=300&format=png&auto=webp&s=c938aac51e3b3bbf1f45a11c46f4ae3dfd1b6dd4
Trading with price patterns to hand enables you to try any of these strategies. Find the one that fits in with your individual trading style. Remember, you’ll often find the best trading chart patterns aren’t overly complex, instead they paint a clear picture using minimal indicators, reducing the likelihood of mistakes and distraction.

Consider Time Frames

When you start trading with your short term price patterns pdf to hand, it’s essential you also consider time frames in your calculations. In your market, you’ll find a number of time frames simultaneously co-existing. This means you can find conflicting trends within the particular asset your trading. Your stock could be in a primary downtrend whilst also being in an intermediate short-term uptrend.
Many traders make the mistake of focusing on a specific time frame and ignoring the underlying influential primary trend. Usually, the longer the time frame the more reliable the signals. When you reduce your time frames you’ll be distracted by false moves and noise.
Many traders download examples of short-term price patterns but overlook the underlying primary trend, do not make this mistake. You should trade-off 15-minute charts, but utilize 60-minute charts to define the primary trend and 5-minute charts to establish the short-term trend.

Wrapping Up

Our understanding of chart patterns has come along way since the initial 1932 work of Richard Schabacker in ‘Technical Analysis and Stock Market Profits’. Schabacker asserted then, ‘any general stock chart is a combination of countless different patterns and its accurate analysis depends upon constant study, long experience and knowledge of all the fine points, both technical and fundamental…’ So whilst there is an abundance of patterns out there, remember accurate analysis and sustained practice is required to fully reap their benefits.

The source : https://www.daytrading.com/patterns
submitted by JalelTounsi to ethfinance [link] [comments]

Can the simplest forex indicators make you a millionaire?

This was a question on Quora I have recently answered for and thought some of you here might find it useful.
So I insert it here:
#####
Do you want to be a millionaire trading Forex with indicators? Well, of course, you do...why would you post this question to Quora otherwise?
The REAL question is – how do you do it?
There are countless different technical indicators out there, so where do you start? Where do you focus your valuable time and money?
Let's understand first what Forex indicators are. In essence, they are tools that turn the already available price data into something else. You've read it right. They don't provide any new information you couldn't get simply by looking at the chart.
But there are still people who get amazing results with indicators. Have they invented a secret tool that actually moves the needle?
I'm not Tyrion Lannister to tell this to you, but it's probably not the case. As far as I know, there tends to be one reason why somebody is crushing it with technical indicators while others don't.
And it has nothing to do with the indicator or indicators being used.
So what I am talking about?
It's the personality of the trader that matters. Just think about it:
Indicator-based trading is more objective than price action trading. You can argue about whether a chart pattern is present, but there's no argument about an indicator's direction.
I really don't want to get into the age-old debate of which one is better because the answer varies from person to person. The point is that you have to find out which works for you.
It's not a complicated process, although requires a lot of time. Can you guess what it is? I know you can, it's called testing.
If I told you to start boxing because it works for Mike Tyson, chances are you would laugh at me. Then, in the same way, don't put money into random indicator just because somebody allegedly makes millions using it.
That somebody might has a large trading capital, a perseverant attitude, years of experience and a system you will never able to follow because it goes against everything you are comfortable with.
You have to test different indicators as well as price action techniques. By doing so, you will know which approach best suits you. Also, you will naturally figure out which of the specific indicators, chart patterns, candlestick patterns, etc., performed the best.
You can use free tools like MetaTrader's strategy tester feature or TradingView's market replay. Also, you can invest in backtesting software such as ForexTester.
####
Have a nice day!
submitted by marcellpetras to Forex [link] [comments]

[TASK] Share these two Udemy courses with me $4

Courses:
https://www.udemy.com/candlestick-patterns-to-master-forex-trading-price-action/
https://www.udemy.com/forex-trading-strategy-a-complete-system-with-live-examples/
The course should have Video + English subtitle + course material.
Give me the download link or share with me in google drive.
Payment via PayPal
Thanks.
submitted by Getalliwant to slavelabour [link] [comments]

For those who trade naked charts/price action.

Im trying to trade on lower timeframes, just having fun on a demo account. Im a indicator trader and want to try trading with price action following the books "Naked Forex" and "The candlestick trading bible".
How much it is accurate on lowers TF ?
I make this question because the indicators work really better on highers TF, i think it must be te same for price action.
How do u follow the patterns for trade on 15/30m charts? Look at 1/4h ?
submitted by Harry-Postre to Forex [link] [comments]

r/Stocks Technicals Tuesday - Dec 25, 2018

Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information:
Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:
Measure: Is the security's price trending, has it dipped or is it a falling knife? Interpret: Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? Predict: If price reaches a certain point, will there be a rally or get rejected?
The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.
TA is best used for short term trading, but can also be used for long term.
Intro to technical analysis by Stockcharts chartschool and their article on candlesticks
Terminology
Useful indicators
Methods or Systems
Strategies: See the TA wiki here as this will be a work in progress, feel free to reply with your own strategy.
See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.
submitted by AutoModerator to stocks [link] [comments]

Do candlestick patterns work on low time frames? (some of my observations)

Hi!
So, I am learning forex trading, it took me about half a year to find the way I want to trade and I finally discovered the huge potential of forex scalping. I'm trying to learn by using lots of stuff and see if they work or not. I spend most of my time on 1 minute chart and I noticed that price is vulnerable to:
- support and resistance lines (captain obvious here)
- chart patterns like double/triple top/low, head and shoulders etc.
- trend line breaks
- EMA 50
The last one was highly suprising for me because I'm price actions enthusiast and I try to avoid indicators. Price is very vunerable to EMA 50 even on low time frames.
But there is still a big problem when price is approaching to support/resistance zone and I need some additional confirmations to open a trade, so I'm looking for long wick candles, engulfing candles, a lot of rejections and even if I can clearly see them, there is a lot of situations when price moves in a completely unexpected direction. Sometimes I feel like candlestick patterns don't work on 1 minute chart and price is doing some "random" moves.
I look at previous hours/days quite often and when I see that there was a big move, I look at previous candles, even on higher time frames and I think "shit, there is no chance I could predict that".

Do you have similiar experiences?
submitted by Eksagnem to Daytrading [link] [comments]

Online Forex Trading Courses - How Important is it to Find a Good Forex Trading System?

There are exotic currency pair options which include trading Forex Trading System Review the US dollar against Thai baht, Danish krone and Singapore dollar, amongst others. There are also currency crosses in forex trading, such as the British pound and Japanese yen or Euro and Canadian dollar. To be successful in forex trading you trade your currencies in pairs to take advantage of one's strength over another. If you believe the Euro is gaining strength compared to the U.S. dollar then it is wise to buy Euros and sell U.S. dollars at the same time. Forex trading success lies in the ability to spot the stronger currency so you can purchase it whilst simultaneously seller the weaker currency.

You have been testing and playing around with different forex trading systems with little or no success. You start browsing forex blogs, forums, and articles... anticipating to find your ground breaking forex trading system. Still browsing. Take a seat back and little me ask you a question... Why haven't your created your own forex trading system based on your own evaluation. Using others forex system will cause you more stress and frustration. I will provide you with a list of 7 Stealth Steps to maximizing your own forex trading system and how to build the perfect system to match your personality.

There are many important questions that you need to answer before jumping into the forex market. Creating a forex goal will give you a success point to reach for and a direction to pursue. I have seen some traders with 5 indicators on one chart; to inform them of their next move with no success or at best break even. Here's another secret... forex indicators don't work. The 3 most powerful tools to use when trading forex are candlesticks buyesellers behavior, price action resistances, and trend up, straight, or down.

You are attaching emotions with your forex trades because there is real money involved. If you have no previous trading experience or a beginner always start low; then with more experience and confidence starting increasing your lot as time passes by. Not all your trades are going to be winners. It is better to break even then to lose. If you know that the trade has turned against you, don't start praying for a miracle... cut your loss and move on. There are endless profitable opportunities in the forex market.
https://wildforexguide.com/forex-trading-system/
submitted by samsanjana to u/samsanjana [link] [comments]

r/Stocks Technicals Tuesday - Nov 27, 2018

Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information:
Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:
Measure: Is the security's price trending, has it dipped or is it a falling knife? Interpret: Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? Predict: If price reaches a certain point, will there be a rally or get rejected?
The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.
TA is best used for short term trading, but can also be used for long term.
Intro to technical analysis by Stockcharts chartschool and their article on candlesticks
Terminology
Useful indicators
Methods or Systems
Strategies: See the TA wiki here as this will be a work in progress, feel free to reply with your own strategy.
See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.
submitted by AutoModerator to stocks [link] [comments]

A list of books I've read, plan on reading, or reading now.

Here is my list of books I've been planning on posting for a while now. I've read a good amount of these books but I still have a bunch to go. How did I find these books? I searched the fuck out of amazon for things that I would find useful that had good reviews, ratings, and a summary/description that matched what I was looking for. I don't have the time to write or copy/paste a summary of each book so added the amazon link to each one if you want to know more about it. The last list of miscellaneous books doesn't directly deal with forex trading but rather economics and shit in general. I added them to the list because I figured they would interest some of you. If there are any books I should add to this list, comment below.
Beginners:
These are some of the first Forex books i've read. They're on par with babypips but a little more in depth. Each book explains all the same basic concepts but in their own unique way. I don't know about you guys but I prefer to learn things from different people and sources so I'm exposed to new ways of thinking. If you have been trading for a while, just scroll past these few books, they're meant for complete beginners.
Technical Analysis:
Below is every book you will ever need for technical analysis. They are in no particular order but I strongly advise you to start with the first book by Steve Nison. Of course, just reading these books won't make you a master at TA. You need to apply and practice the concepts as you go. Reading the info is just scratching the surface.
  • Japanese Candlestick Charting Techniques, Steve Nison - Link
  • Candlestick Charting For Dummies, Russell Rhoads - Link
  • Charting and Technical Analysis, Fred McAllen - Link
  • Getting Started in Chart Patterns, Thomas N. Bulkowski - Link
  • Technical Analysis For Dummies, Barbara Rockefeller - Link
  • The Art and Science of Technical Analysis, Adam Grimes - Link
  • Technical Analysis of the Financial Markets, John J. Murphy - Link
Fundamental Analysis:
Fundamental analysis is the study of the underlying fundamentals that move a security, in this case, currency. The fundamentals in forex are all about economics, obviously. Therefore, a majority of the books in this list deal with economics. If you feel comfortable with economics, skip to the economic indicators towards the bottom. I also included a book called Naked Money which deals mainly with our financial system and money.
  • Basic Economics, Henry Hazlitt - Link
  • Naked Economics, Charles Wheelan - Link
  • Economics Through Everyday Life, Anthony Clark - Link
  • The Economics Book, DK - Link
  • Economics DeMYSTiFieD, Melanie Fox - Link
  • Doughnut Economics, Kate Raworth - Link
  • Misbehaving: The Making of Behavioral Economics, Richard H. Thaler - Link
  • Naked Money, Charles Wheelan - Link
  • Economic Indicators For Dummies, Michael Griffis - Link
  • The Secrets of Economic Indicators, Bernard Baumohl - Link
  • The WSJ Guide to the 50 Economic Indicators That Really Matter, Simon Constable - Link
Psychology:
You can have the BEST trading strategy out there, but without good trading discipline, you're fucked.
  • Trading in the Zone, Mark Douglas - Link
  • High-Probability Trading, Marcel Link - Link
  • The Signal and the Noise, Nate Silver - Link
  • Superforecasting: The Art and Science of Prediction, Philip E. Tetlock - Link
Miscellaneous:
This is the type of stuff you read when you're bored or taking a shit.
  • Global Economic History: A Very Short Introduction, Robert C. Allen - Link
  • The Creature from Jekyll Island, G. Edward Griffin - Link
  • Richest Man In Babylon, George S. Clason - Link
  • Narconomics: How to Run a Drug Cartel, Tom Wainwright - Link
  • The Industries of the Future, Alec Ross - Link
  • The Urban Farmer, Curtis Allen Stone - Link
  • Griftopia, Matt Taibbi - Link
  • Dark Money, Jane Meyer - Link
  • Currency Wars, James Rickards - Link
  • How Asia Works, Joe Studwell - Link
  • Think and Grow Rich, Napoleon Hill - Link
  • When Genius Failed, Roger Lowenstein - Link
  • The Wealth of Nations, Adam Smith - Link
  • Why Nations Fail, Daron Acemoglu - Link
EDIT: There are some books I left out, I will add them later.
submitted by 47dollars to Forex [link] [comments]

r/Stocks Technicals Tuesday - Dec 11, 2018

Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information:
Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:
Measure: Is the security's price trending, has it dipped or is it a falling knife? Interpret: Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? Predict: If price reaches a certain point, will there be a rally or get rejected?
The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.
TA is best used for short term trading, but can also be used for long term.
Intro to technical analysis by Stockcharts chartschool and their article on candlesticks
Terminology
Useful indicators
Methods or Systems
Strategies: See the TA wiki here as this will be a work in progress, feel free to reply with your own strategy.
See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.
submitted by AutoModerator to stocks [link] [comments]

r/Stocks Technicals Tuesday - Dec 04, 2018

Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information:
Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:
Measure: Is the security's price trending, has it dipped or is it a falling knife? Interpret: Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? Predict: If price reaches a certain point, will there be a rally or get rejected?
The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.
TA is best used for short term trading, but can also be used for long term.
Intro to technical analysis by Stockcharts chartschool and their article on candlesticks
Terminology
Useful indicators
Methods or Systems
Strategies: See the TA wiki here as this will be a work in progress, feel free to reply with your own strategy.
See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.
submitted by AutoModerator to stocks [link] [comments]

r/Stocks Technicals Tuesday - Dec 18, 2018

Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information:
Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:
Measure: Is the security's price trending, has it dipped or is it a falling knife? Interpret: Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? Predict: If price reaches a certain point, will there be a rally or get rejected?
The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.
TA is best used for short term trading, but can also be used for long term.
Intro to technical analysis by Stockcharts chartschool and their article on candlesticks
Terminology
Useful indicators
Methods or Systems
Strategies: See the TA wiki here as this will be a work in progress, feel free to reply with your own strategy.
See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.
submitted by AutoModerator to stocks [link] [comments]

Education post 3/100 – How to trade inside bar?

Education post 3/100 – How to trade inside bar?
If you are a fan of pure price action Forex trading using candlestick patterns, then this lesson will be of particular interest to you. Today we will discuss a powerful candlestick formation which can often precede a sharp price move.
This formation that I am referring to is the Inside Bar pattern. We will discuss the structure of the inside bar setup and the psychology behind it. And finally we will go through a few of inside bar variations that you should become familiar with.

What is an Inside Bar ?

The inside bar is a two bar candlestick pattern, which indicates price consolidation. In order to confirm this pattern you need to see a candle on the chart, which is fully contained within the previous bar. In this manner, the inside bar candle should have a higher low and a lower high than the previous candle on the chart.
The Inside Bar is fairly easy to spot on the chart, but using an Inside Bar indicator can assist the trader in quickly finding these patterns on their price chart as well.

MORE ON: https://www.groundstoneholdings.com/2018/10/06/education-post-3-100-how-to-trade-inside-ba

https://preview.redd.it/7dfpk1ubvhq11.png?width=1274&format=png&auto=webp&s=b2d77be468c9c110aa01b46acd2087afe0ea383a
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Learn Forex Trading: Candlestick Entry Techniques The Ultimate Candlestick Patterns Trading Course Trading Price Action Using PIN BARS Best Forex Candlestick Reversal Pattern part 01 Hindi Mastering Candlestick Trading  Urban Forex Five Power Candlestick Patterns in Stock Trading Strategies by Adam Khoo

Action Forex. Markets. Live Comments; Currencies. Trade Ideas Candlesticks Weekly. Candlesticks Weekly ActionForex.com was set up back in 2004 with the aim to provide insight analysis to Forex candlesticks provide a range of information about currency price movements, helping to inform trading strategies Trading forex using candlestick charts is a useful skill to have and can be Indicators: CPI Candlestick Pattern. Pivot Daily.. The Rules of this trading system based on the Candlestick patterns is very simple.. This is an pure price action trading system.. Sell. Wait the price is below a pivot level after when appears an bearish pattern,. you place an pending order 2 pips below the Bear Pattern. Summary Price Action Candlesticks: As said introducing you to the candlesticks formations, there are many more formations than we’ve just explained. We’ve clarified most useful and most common formations for you. The formations we’ve been talking about will have the best chance for a good trade setup. Live Forex Analysis, Currency Rates, Economic Calendar, Technical Forecast, Fundamental News, Free Trading Signals. Best. USD Dollar, EUR Euro, JPY Yen, GBP Pound

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Learn Forex Trading: Candlestick Entry Techniques

How To Trade Most Powerful Japanese Candlestick Patterns in Forex Trading - Duration: 18:42. Forex indicators 32,503 views. 18:42. Oliver Velez ... How To Trade Forex Candlesticks: A Complete Guide for Forex Traders Part 1 What are candles? Simply put, candles are a way to explain how prices are going up. Candle charts are available on the ... #Candlestick #Patterns #forex. #Candlestick #Patterns #forex. Skip navigation Sign in. ... Using Candlestick Patterns in your Price Action Analysis Urban Forex - Duration: 56:36. In this video we show you the BEST candlestick patterns that work. Knowing how to spot candlestick patterns is a key part of price action and all traders must learn how to be able to spot ... The pin-bar candlestick can be seen frequently on Forex charts and the best traceable pin-bars are usually located at the end of impulse waves, and extend outside of the preceding price action.