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Category Archives: Technical Analysis Tutorial

Technical analysis for the USD/JPY 17 Jan 2014

The USD/JPY broke down its 100-4hour moving average which is a sign of weakness. The USD/JPY is still in a sideways trend on 4-hour chart. First support lies at 104.08yen; second support is in the area between 103.53 yen & 103.23yen and the main support is in the area between 102.85yen & 102.15yen.The recent price peak failed to reach the ... Read More »

Technical analysis for the GBP/USD 17 Jan 2014

The cable broke up its 50 and 200-4hour moving averages which are signs of strength. The cable changed its trend from down to sideways on 4-hour chart. If sterling manages to break up the area between 1.6464$ & 1.6517$, it will face next resistance at the area between 1.6603$ & 1.6618$ and the main resistance is 1.6746$ .The recent price ... Read More »

What is Technical Analysis and Why is it Important?

What is Technical Analysis? Technical analysis is the study of historical price action to identify patterns and determine probabilities of future movements through the use of indicators, patterns, and candlestick formations. Technical analysis boils down to identifying trends, and finding significant support and resistance areas. Essentially, markets can only do three things: move up, down, or sideways. Currency pairs typically ... Read More »

What is a Chart and what are The Types of Charts?

What is it? A chart is a graphical representation of historical market prices. The most commonly used chart types in forex trading are bar charts and candlestick charts. Although these two chart types look quite different, they are very similar in the information they provide. Bar and candlestick charts are separated into different timeframes. Each bar or candlesticks represent the ... Read More »

What are Support and Resistance Levels?

What are support and resistance? Resistance is a price level where rising currency stops, changes direction, and begins to fall, keeping a currency pair from rising higher. Often viewed as a “ceiling.” Support occurs when falling prices stop, change direction, and begin to rise, keeping a currency pair from falling further. Often referred to as a “floor.” If price breaks ... Read More »

What are Trendlines?

What is a trendline and how can it be used? Trendlines connect significant highs and lows to create a visual representation of support or resistance. Must connect at least two and ideally three or more points to be effective. Trendlines can be horizontal, upward or downward and extend beyond to the right in order to illustrate future support and resistance. ... Read More »

What are Fibonacci Numbers and Lines?

History of Fibonacci Fibonacci Retracement is a relationship within a sequence of numbers. Discovered by Leonardo Fibonacci, the sequence of numbers is as follows: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc. Put simply, the Fibonacci sequence is composed of the sum of the two preceding terms. However, the most important portion of the ... Read More »
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