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 17) – Price Confirmation Tools (PCT): Volume, Volatility & Sentiment

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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 16) – Price Confirmation Tools (PCT): Trend & Momentum

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Last week, we looked at the fascinating concept of Ichimoku. We now go up a gear in terms of our analysis. So far, we’ve mostly been looking at tools or analysis directly on price. We’re now going to look at various tools and indicators that are a derivative of the price action. They usually sit under the main price chart. Their role is to help confirm the price action and give the user another objective piece of analysis to aid decision making. Although, a lot of that decision making can become very subjective! I like to break my price confirmation tools down into 5 distinct types of indicators: [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 11) – Direct Price Analysis (DPA): Bands

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In the last article we looked at Moving Averages. In Part 11, we take the evolution of direct price analysis, in technical analysis, a step further in its application. In this article we are looking at ‘bands’ created around price, for the purposes of trade management and identifying trading opportunities. We are going to look at four of my favourites: Bollinger Bands, Donchian Bands, Keltner Bands and Envelopes. [Read more…]

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