Technical Analysis

On balance volume (OBV) is an indicator used to measure buying and selling pressure. It is obtained by adding up and subtracting down daily volumes. Investors can predict trend continuations and reversals by using divergence or lack of it between prices and OBV. How OBV indicator works Joseph Granville first introduced OBV in 1963 in his book Granville’s New Key to Stock … [Read more...] about The On Balance Volume (OBV) for Your Forex Trades

A Moving Average crossover occurs when the shorter-term or fast Moving Average crosses above or below the longer-term or slow Moving Average on a chart. MA crossover may assist traders in detecting trend patterns, including where the next possible entry point could be if a trend is likely to continue or reverse and whether the trend has changed. Future prices are not … [Read more...] about Fast Moving Average (MA) Crossovers

In the words of the legendary Bruce Kovner, "Whenever I enter into a position, I have a predetermined stop. That is the only way I can sleep…." The practice of using stop losses is one drummed into the minds of every trader entering the business of trading, and for a good reason. As part of risk management, a stop loss is one of the main tools limiting one's downside to … [Read more...] about Traditional vs. Guaranteed Stop Losses in Forex: The Differences

Reversals are common in the market whenever financial instruments move in one direction for a prolonged period. Double tops and bottoms, head and shoulders, and engulfing candlestick are commonly used configurations to predict potential exhaustion points. However, they are not the only ones. Bearish diamond top It’s a less talked about reversal pattern that occurs … [Read more...] about Bearish Diamond Top Configuration: A Reversal Pattern for Liquid Securities

Identification of trends is one of the most important aspects of trading. It is not uncommon for a stock to trade sideways for prolonged periods. At times, however, markets may become volatile, thereby making it difficult to identify where the trend is headed. That is why we need oscillators.  RSI This indicator signals to traders how strong or weak a particular … [Read more...] about RSI vs. Stochastic Oscillator for Trading