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…]
Chart of the day: GBPUSD – Welcome to Article 50 day! Ahead of any announcement, a quick look at the FX pair. Unsurprisingly weaker leading into today’s events but action probably priced in? Should though anticipate that there will be some volatility. In the longer term weekly chart still bearish / range bound between 1.27 and 1.20 at lows. This mornings 15 minute chart shows prices coming off overnight but have now gone flat and stabilising around the 1.24 level.
Calling the turn when trading any financial market is a notoriously difficult thing to achieve with any given consistency. There are thousands of different technical analysis tools and techniques that try to give you this edge. One of the best and most simple I’ve come across is the 3 Line Break chart.
What is a 3 Line Break?
The 3 line break is a very useful Japanese style chart configuration that takes out a lot of the guess work from calculating turning points in a chart. It works across all assets and most time frames. 3 Line Break charts like its cousins the Renko chart and Point and Figure chart, ignores time and only updates when prices move by a certain criteria. [Read more…]