Some traders think Ralph Elliott's wave theory is a load of old rubbish. Others love it. But it has its uses. As a predictive tool for both entering and exiting trades, once you've mastered it, Elliott wave theory can be very effective. Let's take a closer look at some basic Elliott wave counting…
Before going any further, it's worth mentioning from the off that many books have been writte... ››› more
The average directional index (ADX) is a very useful trend strength indicator for intraday traders. It's good for fading overly aggressive intraday moves. A common approach for this is using Bollinger bands, but the ADX can give a real clue to whether you're looking at a sustained move or something that is likely to reverse quite quickly. Let's take a closer look at how to use it…
The average ... ››› more
Mention the word platinum to a South African and they'll probably start recounting stories of violent strikes, crashing share prices and lost money.
And there's no doubt, platinum has earned this reputation over the years since the financial crash.
But what you might not realise is the situation for traders holding platinum isn't nearly as bad as you might think. And looking at the big pictu... ››› more
When it comes to trading, you're going to face some losers. I know that statement leaves you with an uneasy feeling, but that's the reality of trading.
No matter what system you create, there'll be losers and there's no way of escaping it.
All you need to do is manage your trades with strict money management principles and you'll ensure steady gains over time.
So I want to show you the o... ››› more
ADX stands for average directional index. It's a trend strength indicator. It gives you an idea of the strength of a trend and you would typically use it alongside a directional indicator, like the DMI (directional movement index). Let's take a closer look at how you can use this indicator to show you if the market is trending…
The idea of ADX is very simple, Max Munroe in Forex Round-Up expla... ››› more
When it comes to chart patterns, the head and shoulders pattern is one of the most well-known. Using this chart pattern can work out very well. It's just a matter of knowing what to look for. Read on to uncover why the head and shoulder pattern can prove such a great trading strategy…
The success of using the head and shoulders pattern is all about market sentiment around the currency pair in ... ››› more
Love them or hate them, the thing about chart patterns is they really can lead to some pretty nice forex trading strategies... if you know what you're doing. That's because these patterns occur due to fundamental reasons (support/resistance) and order flow. So they can give you great entry, stop and target levels to use on your trades. Let's take a closer look at how you can use the head and shoul... ››› more
One of the hardest and coldest realities about trading is that, you will lose money from time to time.
And there'll be times when the market is undecided and goes nowhere.
For a trader, this is where the losses can start to accumulate and the weaker traders tend to blow their accounts.
But you don't need to sit back and watch your losses add up!
Action #1 Don’t change your strategy
If y... ››› more
Every year, you see thousands of analyst tips, and evaluations of different companies and markets.
And the reality is, most of this analysis falls on deaf ears. In good times, the majority of investors just don't care about analysis so long as they're making money.
But there is a time when you need to pay attention to what analysts are saying. In fact, reports show that when analysts are mos... ››› more
With the onset of a new year, it's a great time to have a look at the investment and trading principles you follow. If you're a short-term trader, your investment principles will be different to those of a long-term investor. With that in mind, read on to discover four short-term trading principles from a technical standpoint…
When it comes to your trading principles, you should review these a... ››› more
At the end of November 2013, I told you, you had an 80% chance of making money in December.
Click here to read the article.
I based this on what’s often called the Christmas Rally and I gave you three reasons for what causes this run. I showed you how the market had gone up eight out of the previous ten Decembers; and if you wanted to enjoy an 80% chance of making money, you needed to buy i... ››› more
You can use average true range (ATR) to show you how volatile different currency pairs are. This is useful as it can show you where is best to put your stop loss, for instance. And you can use it to work out how much to put into your trade. Read on to find out how to use ATR to work out the size of your forex trade…
Using the average true range (ATR), you can measure the volatility of differen... ››› more
There's a mountain of economic, information, data, statistics, and media hype flooding the news every trading day…
By the time you've compiled all of the data, there's already a deluge of headlines to look at!
Most traders who come into the stock market, feel the need to keep up with the media influences such as Bloomberg and CNBC.
But, there's no way in this universe you can possibly ... ››› more
Some forex pairings are considerably more volatile than others. They're all slightly different. By using average true range (ATR) you can work out this volatility. And you can apply this to work out a suitable stop loss level for each pair. Read on to discover how…
One of the ways you can show the volatility is by looking at the average daily range of the currency pairs (high – low), Max Mun... ››› more
Bollinger bands are great to use in a range bound market or a low volatility environment. By using other technical indicators such as the average directional index or moving averages, you can check this. Then it's onto putting your Bollinger bands to work. Read on to uncover how to use Bollinger bands in your trading strategy…
Once you’ve identified this range bound environment, you can use ... ››› more
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