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How to Analyze Charts using the right Indicators

 

Price rarely moves in one straight line from point A to point B. Consolidations and ranges are common price patterns and they can make it hard for traders to find trade entries or stay in trades. Knowing how to differentiate between different market phases and picking the right tools and concepts to make trading decisions is an important characteristic of a good trader.

In this article, we discuss technical analysis and the indicators that can help you analyze charts, highlighting their most important concepts in general. The strategies we introduce here may not be new to you as a trader, however, when used together in the right combination, you may be able to refine your process of execution and risk management.

 

  1. Naked Charting and Price Analysis

At the core of all good

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Price Action Vs. Trading Indicators – The Old Battle Settled(?)

 

The discussion about price action trading and whether it’s better than indicator trading is as old as trading itself. This article will debunk the 5 most commonly shared opinions on Price Action Vs. Trading Indicators and give traders a new perspective on the age old debate.

 

#1 Price action is better than indicators

Price action traders claim that it is a much better trading method in general. But if you dig a little deeper, price action and indicators are not that different. Candlesticks or bar charts are tools to visualize price information on your charts. Indicators take the same price information and apply a formula to it. Indicators don’t add or take away anything from the price information you see in your candlesticks – they just process the information in a different

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A Comprehensive Guide to Trading Divergences

 

Trading divergences are a multi-faceted trading concept that can be applied across different markets, timeframes and indicators. Divergences can help traders understand markets better by finding early warning signals that a trend is losing momentum and can potentially reverse.

 

Trading Divergence 101

Before we get into analyzing charts with divergences, we have to take a look at what divergences actually are.

Identifying divergences is straight forward: you have a bullish divergence when price makes higher highs but the indicator you are using is making lower highs. A bearish divergence, on the other hand, is the exact opposite: when price makes lower lows and the indicator shows higher lows, traders speak of a bearish divergence.

Divergence are exclusively used during trending markets and not during range markets. At the same time, the indicators used are

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14 Essential Candlestick Patterns to help you read Charts

 

Candlestick patterns serve as a good visual guide for both day traders and swing traders. You can recognize momentum, change of direction (rejection) and/or price confirmation.  It usually takes time to recognize these patterns, but with a little bit of training and understanding, you can start seeing them in real time trading.

Single Candle Pattern

As we will see, price action traders separate between 1, 2 and 3 candlestick patterns. The 2 and 3 pattern formations are usually an alternation of the 1 candlestick patterns so it’s important that we start here first.

Generally, 2 and 3 candlestick patterns carry more weight because they offer more context in our opinion.

 

Yo-Son and In-Sen

We can also call them “momentum” candles because they are typically large candles without long, or any, wicks. In case of a

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5 Techniques for placing Stop Loss Orders

 

There are many questions regarding how to place stop loss orders and which technique to follow. Although no one single approach is better than the other, knowing your options and how to place a stop loss with different techniques is important. This article will go over the five most commonly used methods, in our opinion, for setting stop orders.

Please note that it does not matter how we define the trade entry in the examples below. They are just meant to provide context for setting stop loss orders.

Disclaimer:  The placement of contingent orders by you or yout broker, or trading advisor, such as a “stop-loss” or “stop-limit” order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders.

 

  1. Moving averages

Moving averages

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