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
Technical Analysis
Fractals in Forex
Fractals are technical indicators that appear on candlestick charts and are used to indicate market reversal points. They are commonly used by traders to predict the direction of price movement. When a specific price pattern appears on a chart, a fractal will appear. Fractals are made up of five candlesticks. When the price has battled to go higher, an up fractal will form; … [Read more...] about Fractals in Forex
The On Balance Volume (OBV) for Your Forex Trades
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
Fast Moving Average (MA) Crossovers
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
Traditional vs. Guaranteed Stop Losses in Forex: The Differences
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
