We are going to round off our introductory technical analysis series, in the last three articles, by putting together what we’ve learnt so far. It’s fine having all this new knowledge, but how do you use it in the real world? Technical analysis is a multi-talented tool that can be used for many things in your trading – not just direct price analysis. So this week, we are going to look at how you can use technical analysis to design, build and implement a trading strategy. In our final two articles, we will see how you can apply technical analysis in your risk and trade management and how you can use it to improve your results! [Read more…]
Technical Analysis (Part 22) – Japanese Charts : Kagi
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 17) – Price Confirmation Tools (PCT): Volume, Volatility & Sentiment
Previously, we looked at tools and indicators based around trend and momentum that confirmed price action. In this article, we will look at three further types of price confirmation tool: Volatility, Volume & Sentiment. These tools could help give you supportive, independent information in your analysis of any given asset. What is presented here, is not an exhaustive list of the technical tools used in this space, but some of the more generic and popular ones. [Read more…]
Technical Analysis (Part 10): Direct Price Analysis (DPA) – Moving Averages
In Part 9, we dug into the world of price patterns. This week, in Part 10 of our blog series, we explore a common method used in the world of maths and finance to find trends in data; that of moving averages. The moving average is a highly effective, multi-purpose tool that can enhance your technical analytical abilities.
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Technical Analysis (Part 8): Direct Price Analysis (DPA) – Trends, Support & Resistance
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…]
