Technical Analysis

Inside bar trading is a two-bar setup in which the inner bar is smaller and within the preceding bar's high-to-low range. This means that the new high is lower than the previous bar's high. Depending on where it sits in relation to the previous bar, it can either be at the top, center, or bottom. If the highs/lows of the inside candlestick and mother bar are equal, it may … [Read more...] about Inside Bar Trading Strategy

The Ichimoku cloud is an intriguing, Moving Average-based indicator providing traders signals regarding support and resistance, momentum, and trend. The full name of the indicator is 'Ichimoku Kinko Hyo,' which translates to 'a glance at a chart in equilibrium.' While this esoteric statement sounds like something you'd hear in a Zen, the Ichimoku is a frequently utilized … [Read more...] about Ichimoku Cloud Indicator in Forex Trading

A continuation pattern is a series of price fluctuations indicating that the current trend will resume after the break. Consolidation usually manifests itself in the shape of a sideways movement. Reversal patterns communicate that the current market trend has reached a point of exhaustion, with a new price trajectory in the offing. For instance, if the trend has been moving … [Read more...] about Continuation vs. Reversal Patterns in Forex Trading

The average true range (ATR) is a tool that is used to measure volatility, and it shows how much an asset's price fluctuates on average over a given period of time. As a confirmation tool for both entry and stop-loss orders, this indicator is useful for day traders. It is important to note that the ATR does not reflect the price trend of the market; rather, it concentrates … [Read more...] about Average True Range Indicator in Forex Trading

The Donchian channels indicator is a trend-following tool that was named after its inventor, World War II veteran Richard Donchian. For his contributions to the FX market, he was dubbed the father of trend following trading. This indicator illustrates the volatility of a market in a graphical format.   At face value, the indicator appears like the Bollinger Bands, … [Read more...] about Implementing the Donchian Channels Indicator in Forex Trading