Technical Analysis (Part 22) – Japanese Charts : Kagi

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Previously we looked at the Line Break chart which was great for spotting possible reversals. In this article, we look at an approach that can filter out some of the psychological issues you may be having with your analysis. If you’re struggling with the ‘noise’ of the charts and information overload in your trading, then Kagi charting could be just the thing for you to add to your trading arsenal. Kagi charts were developed in Japan in the 1870’s when their stock market started trading and were used to track the price movement of rice. They were used to give a much more transparent picture of where the price of an individual asset was headed independent of time. Due to the global world we live in and the advancement in charting software, techniques such as Kagi charting are now available to all of us. [Read more…]

Technical Analysis (Part 20) – Japanese Charts : Renko

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In Part 19, we introduced the idea of Heikin Ashi. In part 20, we go off on a more extreme tangent! In terms of Technical Analysis applications, Renko Charts, at first glance, could appear to be as ‘way out’ as it gets – the work of some Technical Analysis boffin with too much time on their hands! In fact, Renko charts aren’t some new tool created by the technological revolution, but have their roots firmly embedded in eighteenth century Japan. They were originally applied to trade Rice and formed the building blocks for a robust trading strategy. [Read more…]

Technical Analysis (Part 15) – Direct Price Analysis (DPA): Ichimoku

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Part 14 showed us how useful and effective Pivots could be, especially for intraday trading. Part 15 introduces us to a very individual concept in technical analysis. Ichimoku is a unique trading tool for analysing any asset in any timeframe. To the outside observer, at first glance it looks a complete mess. Untangle it though and you have a straightforward and very powerful all round trading system that can seriously boost your trading results. This blog presents a simple overview of this system, building up the tools of Ichimoku using the S&P 500 Stock Indices as the base example, hopefully giving you an initial starting point on your journey into a unique part of technical analysis. [Read more…]

Technical Analysis (Part 14) – Direct Price Analysis (DPA): Pivot Points

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In the last article we looked at Fibonacci. In part 14, we look at something that is visually similar: Pivot Points. I find that Pivot Points are one of the best tools for trading intraday FX or Stock Market Indices. Like Fibonacci, they give you a road map for price support and resistance. At times they behave like magnets towards the price action and because of this, a trader can use these pivot points to anticipate future short term price action. They can be used in the longer term, but in my experience, this approach isn’t so popular. [Read more…]

Technical Analysis (Part 6): Equivolume

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Markets Prices BoardLast week in Part 5, we looked at Point and Figure charts. This week, we look at one of the relatively newer style of charting methods that is yet to catch on in a more global sense: Equivolume. The rapid advancement in technical analysis and charting package technology over the last half of the 20th century, has allowed for many more innovative technical analysis solutions to come to the fore. One such method is that of Equivolume. [Read more…]

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