Technical analysis

How to Master the Commodity Channel Index for Effective Momentum Analysis

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 …

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Artificial Intelligence and Machine Learning – The Future of Technical Analysis and Trading

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 …

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The Importance of Multi-Timeframe Analysis in Technical Trading

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 …

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Mastering the Mental Game of Trading Psychology and Risk Management

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 …

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Advanced Chart Patterns – Head and Shoulders Double Tops and Beyond

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 …

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The Ultimate Guide to Trading With Trend Lines and Moving Averages

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 …

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Discovering Profitable Divergences and Hidden Trading Opportunities

Finding Divergences and Hidden Trading Opportunities Successful trading strategies focus on finding indicators that signal trend reversal – usually momentum indicators. However, traders should not disregard other indicator signals such as divergences as these could help identify trend changes earlier and create potentially more lucrative entry and exit points. How to find a divergence Divergences can be invaluable tools in …

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The Science of Volume Analysis

Volume Analysis A technical analyst may use volume analysis as one means of gauging the health of an uptrend by tracking changes in trading volumes. Rising markets often experience more trading volume as investors become excited by rising prices continuing their climb upwards. Low volume may indicate a lack of interest in buying and selling shares, potentially signalling bearish trend …

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Exploring Gann Theory and Its Power in Technical Analysis

Gann theory is an innovative trading strategy that integrates elements of astrology, geometry, and mathematics. Its strength lies in its ability to anticipate market trends while providing key time cycles and potential turning points. Gann’s theories provide traders with an effective technical analysis tool for identifying support and resistance levels within the market, managing their risk more effectively and increasing …

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Advanced Trading Strategies Using MACD

MACD indicator is one of the most frequently utilized technical indicators by traders and can help create numerous trading strategies. Gerald Appel introduced the Moving Average Convergence Divergence (MACD) indicator into most trading packages and this tutorial covers its fundamental application for use as part of a trading strategy. Here we discuss an example MACD trading plan designed to help …

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