Technical analysis

Balance of Power indicators provide traders with an effective tool for recognizing price trends. They offer both bullish and bearish divergence signals. Assesses the strength of buyers and sellers by measuring how well they are at driving prices up to extreme levels, with values that typically fall between -1 and +1. It reveals the secret battle between Buyers and Sellers …

The Force Index is a trend-following indicator that integrates price and volume data. It helps traders identify trade signals within trends as well as detect divergences. Force Indices tend to signal upward trends. Conversely, when they reach new highs they often signify the continuation of an uptrend; conversely if they drop lower lows this may signal that downtrends could be …

Momentum trading can be an extremely profitable strategy for those able to manage its risks and stick to an established plan. However, it is crucial that trades be exited before reaching an overextended technical state. Divergences between the price chart and momentum indicator can help investors spot potential trends reversals by showing where the indicator line moves oppositely from price …

Oscillator trading strategies provide traders with many valuable ways to identify potential buying and selling opportunities. Some of the more basic signals include zero line crossings, twin peaks and saucer setups. The Awesome Oscillator indicator can be easily added to your charts, with most trading platforms including this tool by default. Unfortunately, like any technical indicator, it does not guarantee …

Momentum is a cornerstone of trading success, and in this article you’ll learn to master the CCI indicator – an effective momentum gauge designed to help traders anticipate market reversals and execute profitable trades. As with other momentum indicators, the CCI measures relative price levels by comparing them to their averages over a certain period. Its use is relatively straightforward …

As a trader, artificial intelligence (AI) could be an invaluable asset to enhance your technical analysis skills. AI can help uncover patterns which would otherwise remain hidden. Machine learning is an important subfield of AI that uses algorithms to automatically extract insights from data, enabling computers to make increasingly accurate decisions without being programmed specifically for each task. 1. Predictive …

Technical trading requires mastery of multiple time frames. Being adept in this area will significantly increase a trader’s odds of success and help to strengthen his/her chances. Pro traders prefer multi-time frame analysis because it helps them keep an eye on big picture and long term trends, and fine tune their entry and exit points. Trend Analysis Trend analysis is …

As a Forex trader, your trading psychology and risk management abilities are of critical importance for success. Utilizing these abilities will allow you to avoid common errors such as revenge trading, premature exits and overtrading. One of the greatest mistakes traders can make is ignoring their emotions, such as greed, fear or anger. They may allow these to dictate their …

Head and Shoulders chart formation is an indicator that foretells of an impending change in trend from bullish to bearish direction, usually found on intraday, daily and weekly charts. Developing this chart formation occurs when price rises sharply before falling back down again. The pattern features two shoulders; however, one of which is higher than the other. Double Tops The …

Trend lines and moving averages are powerful tools in any trader’s arsenal. By helping to streamline price data, they enable traders to more quickly identify trends while filtering out those that don’t go in their desired direction. Moving averages can act as an effective measure to identify stocks’ trends and gauge whether or not an important point in their development …