Technical Analysis (Part 24) – Putting it all together: Risk & Trade Management

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Successful trading is about helping yourself and putting the ‘odds’ on your side. In part 23 we looked at strategy, design and implementation. This week, we’re going to take a brief look at an often forgotten and overlooked use of technical analysis: Risk & Trade Management. If you are a raw fundamentalist, or don’t want to use technical analysis to make trading execution decisions, that’s fine, but I think you’re being foolish if you don’t consider using technical analysis to improve your risk & trade management processes. [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 13) – Direct Price Analysis (DPA): Fibonacci

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In the last article we looked at how to determine whether markets were trending or ranging.  In Part 13, we look at a very interesting method used to calculate support and resistance and capture the behaviour and psychology in any given market: Fibonacci. Fibonacci has become an extremely popular tool amongst technical analysts. [Read more…]

Technical Analysis (Part 8): Direct Price Analysis (DPA) – Trends, Support & Resistance

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Last week in Part 7, we looked at Market Breadth. We now start a chain of eight articles covering technical analysis directly carried out on price. We will be looking at patterns, support & resistance, trends, Fibonacci, pivots, moving averages, bands, indicators and Ichimoku. The first of the eight, looks at Trends, Support & Resistance. Understanding these principles will give you the necessary building blocks to understand price action and analysis and evolve your technical analysis learning. [Read more…]

Chart of the day: 09/05/17 AUDUSD

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The Australian Dollar (-0.53%) has been giving back strength since mid March’17 as commodity prices have disappointed and major business partners like China have shown a lesser appetite for Australian products and resources.

In the longer term momentum looks weak with the possibility of price now it looks to have broken some key Fibonacci / resistance levels possibly targeting another important Fibonacci target at 0.721? Price since Mar 2016 has been playing in a volatile range between 0.77 and 0.72, so a test at those lows may prove significant. If price does find support at those lows then the chances are price will head once more back into this range.

In the shorter term ahead of todays budget, AUD looks to be holding between the S2 and S3 pivots around the 0.73’s (also just above a longer term Fibonacci support line), waiting on its outcome before deciding to take another move.

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