A Step By Step Divergence Trading Guide

Divergence Trading Divergences are one of my favourite trading concepts because, when paired with other trading tools and concepts, they provide very accurate high-quality trading signals. What if there was a low-risk way to sell near the top of a trend or buy near the bottom? What if you were already in a long place…

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What are Stock Market Indicators, their purpose and their types?

Basically, stock market indicators are used to identify inherent strength or weakness in the stock prices. Indicators have fascinated traders and technical analysts since the beginning. In this chapter, we will learn about the construction and proper application of oscillators and various overlay indicators to help better forecast potential reversals and breakouts in the markets….

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How is Fibonacci Used in Trading?

Fibonacci Tools Now we move into our first advanced price charting method, known as Fibonacci Analysis. Traders use basic Fibonacci retrace to find support or resistance in a trending market, and these key prices can help uncover hidden points of potential support or resistance levels not seen using basic charting methods. Most software programs or…

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What are Trend Analysis Methods?

Definition of Trend Trend Analysis Methods or Trend trading has transfixed traders for decades with the promise of rapid profits. Countless books have been written expounding the virtues and advantages of such an approach. In this chapter, we shall attempt to unveil the underlying characteristics of trend action and how to decipher pure price action…

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How to Draw Trend-lines & Channels?

Provisionary(Tentative) and Confirmed(Valid) Trend-lines. How to draw the trend-lines? A trend-line is created by projecting a line forward into the future drawn from two significant points. For uptrends, a line is drawn between two significant troughs and projected into the future, whereas for downtrends a line is drawn between two significant peaks and projected into…

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What Do You Mean By Dow Theory?

Dow Theory lays the basic foundation for modern-day technical analysis. Its premises underpin the very study of market action analysis and have withstood the test of time. In this chapter, we shall be discussing the basic assumptions of the Dow Theory and its relevance in todayโ€™s markets. Learning Objectives Understand the basic concepts and assumptions…

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What do Candlestick Patterns mean?

Introduction Mr Munehisa Homma from Japan is considered to be the father of Candlestick. According to Pring, 2014 Japanese Candlestick was introduced to the western world in the 1990s. Especially when Steve Nison wrote about it in his publication Candlestick Charting Techniques. He understood basic supply and demand dynamics, but also identified the fact that…

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