Jump to content

Technical Analysis 101


Recommended Posts

  • 2 weeks later...
  • Replies 103
  • Created
  • Last Reply
Guest Valley83

Can anyone help please I'm completely new looking to make my first trade and im trying to test new things I've learned from ig academy such as support and resistance lines if I'm looking to intra day trade how far should I be looking to try this across. Hope the question not too stupid but I am new lol

Link to comment

Hi    A great resource for new traders once you have gone through the basics on the IG education section is;

 

http://www.tradeciety.com

 

Click 'Trading Blog'. One of the sections within is 'technical analysis' and goes in depth on how to apply dozens of different TA tools and shows strategies to use with them.

 

( http://www.tradeciety.com/category/technical-analysis/ )

 

For S/R take a look at:

http://www.tradeciety.com/how-to-draw-support-and-resistance-levels/  

which explains S/R lines and zones using text, diagrams and video.

Link to comment
  • 4 months later...
  • 2 weeks later...
  • 2 weeks later...
Guest jasonbuchan70

Hello mate

 

I personally can't help you but I'd highly recommend attending Chris Westerns webinar at 6:30 pm on Monday nights. I'm also learning though the IG academy and other online sources, and it comes together a little bit more by listening to Chris. He gives some recommendations and explanations as to why he would go long or short. It's here that I gain a better understanding of trading methodologies. Don't do what I have done in the past; trade without knowing the reason behind the trade. I read somewhere that poker players make good traders and if you want to succeed as a trader, spend say 10K (or any other amount) on some form of gambling, ie: horses, casino ect...If you lose a fair bit, how you feel after the loss will tell you whether or not youre suited.  

I also find people really helpful here too! 

 

Link to comment
  • 2 weeks later...
  • 3 weeks later...
Guest Trader_1707

I am thinking now about how to use Directional Movement (DMvt) or ADX at best value. May be to estimate the line position of DI+, DI-, ADX ( I mean if the ADX line is rising, and DI- is in rising position, DI+ is in falling position - its the downtrend and so on). There can be many variations of "intercommunion" of these lines and consequently, there can be many variants of trading, depending of the time frame. Or may be in addition to the analyse of lines ADX,DI+,DI-, to use the general multichart analyse? 

Link to comment

Hi ,   The adx is an interesting indicator and like all indicators it pays to experiment with the settings to find a best match for the time frame you are using, and like all is best not used in isolation but as part of a confluence. In my experience the direction of slope of the adx line (not D+, D-) is not important. Being a measure of volatility/strength it only needs to be above 20 to show a reasonable level. Use D+ D- crosses to show the changing direction of price movement and the level of the adx line to show the market has enough activity/strength to consider participation.

 

http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:average_directional_index_adx

 

adx.PNG  

 

 

 

Link to comment
Guest Trader_1707

, for me was always interesting, when the ADX line, after long-term growth,  change the direction (ex. from rise to fall), making in this moment the so-called "barb,jag". So, what is the market in this case - trend or flat? Fundamentally, the trend in this case is still continuing, but looking at the price, it is seen that the flat market is emerging:smileyfrustrated: what would you do in this case? to use stochastic oscillator? or continue to follow the trend untill the ADX would reach the value 20?

Link to comment

,   good question and a problem for many momentum type indicators. A sharp rise in price action will set off momentum into a steep rise as well but momentum will start to fall long before price does. MACD is similar, price continues up while macd has turned and is heading down, you will always see this after a spike for example. So long as macd is still above zero and price is continuing to make higher highs you should consider the trend to still be valid inspite of falling macd.

 

ADX is a bit different in that it can be very slow to respond to a deep pullback and then trend continuation hence the 'don't worry about direction' just the 20 level.

Also adx will rise if there is a major reversal and price is now falling instead of rising because it is indicating the strength of the move not the direction of price. 

 

Ultimately indicators are lagging so continuing higher highs and higher lows of price is the most important signal (and most basic definition of a trend) though waning momentum could be taken as a warning of waning enthusiasm to keep buying at higher and higher prices.

Link to comment
Guest Trader_1707

thank you for the comprehensive answer, , its obvious of using the analyse of higher highs and lower lows, may be will be more better to use also multichart analyses? (together with indicators such as ADX, Momentum and Stochastic Oscillator - as for me I use only these). I mean simultaneous multichart analyse, that is three charts on one screen: in the middle is the basic chart with timeframe of trading, on the left is the chart with the smaller timeframe, and on the right is the chart with bigger timeframe. 

Link to comment

Good move on the multi-time-frame set up, if you are only looking for trades in the direction of the larger time frame trend while using the lower frame to find pullbacks (dips) to enter the success rate will naturally be greater than unknowing trying to fight a higher time frame trend. 

 

As most indicators are based on moving averages it is not surprising to find that by playing with the settings you can get most to resemble each other, so useful as a guide but problematic as a signal. The better signals are those provided by price action, candle patterns on clean chart structure. 

Link to comment

The bond market, stock market and currency market of a country are all correlated. Money moves up or down the chain depending on risk appetite, bonds safest, currency most volatile, stocks mid way. The bond market is often described as bond yield (which actually moves in the opposite direction to bonds).

 

So if currency is going up, bonds and stocks are usually going down because money is moving  from these to the currency.

The diagram shows currency up, bond yield up (bonds and stocks down). So GB currency up equals FTSE down.

 

These correlations don't always hold true as different circumstances can also affect risk appetite but as a general rule are pretty reliable.

Link to comment
  • 2 weeks later...
Guest Trader_1707

hi,  ! Concerning the theme about correlation. Oil prices can affect also on all major FX pairs, i think many traders noticed that during significant oil price movement (up or down) - the EUR/USD or GBP/USD moves in the same direction to oil prices, i.e - oil moves up - EUR/USD or GBP/USD moves up. But there are moments that this correlation doesn't work out, i stil cant understand why?

Link to comment
Guest oilfxpro

:smileylol:

 

 

 

 

I don't use any technical anylysis, except supports , supports on daily , 4 hour and weekly charts, supports are  price  levels that being held by the markets.These are supply demand areas.Buy at these areas and sell at the supply area.Keep trading simple , the Gurus are over complicating trading and profitable trading.

 

Most professionals listening to this utter tripe. on youtube ,  on technical analysis  will be be put off forums for good.This is why you don't see warren Buffet , George sorros and other really successful gurus using it.

 

http://www.followingthetrend.com/2014/05/why-technical-analysis-is-shunned-by-professionals/

 

Why technical analysis is shunned by professionals :smileylol:

 

https://www.fscomeau.com/why-technical-analysis-is-*****/

 

If technical analysis was a reliable science, we would have an automated software to buy, universities would teach it as a subject.

 

 

Link to comment

Hi .  The common denominator in your fx pairs is USD which is, next to JPY, a safe haven and generally considered not a bad place to park money short term (JPY leans more to the longer term) so if you are an institutional trader looking for opportunities to get in and out of oil (which is priced in USD) a USD fx cross is where you would release the funds from or send them to. The exceptions would relate to the risk associated with USD at the time so you may want to use another asset.

Link to comment

We are all fully aware some people can't do technical analysis so they are right to avoid it, some also can't handle the psychological pressures of trading so these people quite rightly stick to some kind of automated system to negate these two problems.

 

When people shout that something doesn't work what they really mean is that they can't make it work. 

Link to comment
Guest Trader_1707

Trading is the combination of technical analyses and fundamental analyses. And which one is prevailed at the moment is the decision make sometimes by intuition. There are some cases when fundamental analyses outstrips the technical analyses, but there are some cases when the situation is quite the opposite. 

Link to comment

Archived

This topic is now archived and is closed to further replies.


  • image.png

  • Posts

    • I saw Taiko on my TL yesterday but I didn't particularly pay much attention to it... But it seem they are on a good path and have forged some reputable partnerships along the way...  I have to say it's association with big guns of the industry like OKX, Kucoin etc makes it a good prospect and if you can get some of the coins early in the Bitget Pre-Market trading as you said, it will probably be a good investment in a long run! 
    • Gold Elliott Wave Analysis  Function - Trend Mode - Impulse Structure - Impulse wave Position -Wave A of (4) Direction - Wave A of (4) is still in progress Details - 1st Scenario - Gold now favors the current dip to continue as part of wave (4) in a zigzag structure.  2nd Scenario -  It may be wave 4 turning into an expanding flat with a dip below the current wave 4 low. If after the current bearish impulse below wave 4 low, the price reacts with a bullish impulse, then this scenario will be favored.  The 1st scenario will be preferred if the next rally is corrective. The 1st has a lower price forecast than the 2nd. Gold is currently experiencing a pullback from a fresh all-time high. However, the year-long and all-time bullish cycle remains intact. Buyers will therefore look for the next opportunity to buy the dip, anticipating that the uptrend will continue. Identifying when the dip is over is crucial. This blog post aims to analyze that. On the daily timeframe, the current bullish impulse trend emerged from the 1616 low of September 2022, marking the start of the supercycle degree 4th wave of a multi-decade impulse wave. Consequently, the supercycle 5th wave is far from completion as it has not even yet completed the 3rd sub-wave of its 3rd sub-wave, i.e., intermediate wave (3) of primary wave 3 (circled in blue). The current pullback is expected to be wave (4) of the primary degree.   On the H4 chart, wave (4) is completing its first wave—wave A—as an impulse. It is expected to correct upwards in wave B before dropping further to form a zigzag, at least into the 38.2-50% retracement zone at 2256-2199. After wave (4), the price could ascend again in wave (5). However, there can be alternative scenarios that may unfold. The best among them is a running flat structure for wave 4 of (3). The current impulse could complete a 3-3-5 structure for wave 4 below its current low if the response afterward is a bullish impulse. In summary, gold is in a pullback that could reach 2256-2199 before resuming its upward movement to continue the all-time bullish cycle to a new high. Technical Analyst : Sanmi Adeagbo Source : Tradinglounge.com get trial here!
    • Pepe Coin's rise to prominence serves as a fascinating example of the influence of community and hype in the cryptocurrency realm. Despite its creators acknowledging that PEPE holds no inherent value or profit potential, the coin's market value soared past $1 billion following its listing on Binance and Coinbase International Exchange. This surge underscores the significant impact of excitement and speculation in the crypto world. The Power of Community-Driven Initiatives PEPE's success highlights the power of community-driven initiatives in the crypto industry. Analysts cautiously predict that PEPE could potentially reach $0.000078 by 2030, although such projections are speculative and contingent on market conditions. Competition in the Meme Coin Space The rivalry between Pepe coin and Shiba Inu (SHIB) is heating up as new meme coins emerge. PEPE is currently trading at $0.00001424, boasting a 3.40% increase in value over the past day. Its weekly and annual performance is also promising, with gains of 32% and 109%, respectively. Analyzing PEPE's Price Trends Pepe Coin has been May's standout performer, experiencing a continuous rally in recent days. While it's stepping down from its recent all-time high of $0.00001535, its current value of $0.00001436 places it among the top 20 cryptocurrencies on CoinMarketCap. PEPE's trading volume of $4.06 billion ranks it 7th among the highest transactioned cryptos. The Ups and Downs of PEPE Since its launch, PEPE has seen fluctuations but has never dipped to its initial value. After an initial surge followed by a decline, PEPE rose again, setting a new all-time high three times higher than before. This pattern seems to be repeating itself. Conclusion Pepe Coin's journey exemplifies how community enthusiasm can drive the value of cryptocurrencies, even in the absence of inherent value. As the competition between meme coins intensifies, PEPE's story serves as a testament to the power of community-driven tokens in shaping the crypto landscape.
×
×
  • Create New...
us