in Technical Analysis

Technical Analysis Tutorial: Volume Analysis

Let’s go back to basics: technical analysis is the study of market action, i.e. the interactions of buyers and sellers. Rather than the merits of what is being bought and sold, we analyse these interactions in search of patterns and trends that will identify profitable opportunities.
But the information available to the technical analyst does not need to consist merely …

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in Technical Analysis

Technical Analysis Tutorial: Market Profile (1)

Market Profile (c) is a distinct way of charting and analysing price action. It has a very different feel to normal methods of charting, so be prepared to look at markets in a very different way after reading this tutorial! Hopefully you’ll see why there are so many traders who swear by it.
Let’s jump straight in and have a …

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in Technical Analysis

Technical Analysis Tutorial: Candlestick Compendium!

This is a quick summary of important candlestick patterns. It’s presumed that you know the basics of candles: if you don’t, see the article links in our Members Area.
Without further ado, let’s begin.
1. Bullish Marabuzo
Number of candles: 1.
Description: long green candle which opens near its low, and closes near its high.
Implications: BULLISH.

2. …

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in Technical Analysis

Technical Analysis Tutorial: Bar Charts

Bar charts were the most popular way of depicting price movements until Japanese candlestick charts invaded Western technical analysis during the 1970s, but are still as useful as they’ve ever been.
They depict the same information as candlesticks, merely presented in a different way. They have their own terminology, and are most commonly used in conjunction with classical chart patterns …

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in Technical Analysis

The Society of Technical Analysts Diploma Course 2010

We are often asked here at FuturesTechs about training courses on Technical Analysis.
There are many providers out there, but none with the impeccable reputation of the UK’s Society of Technical Analysts. The STA runs their Diploma Course every year at the London School of Economics in Aldwych. The course runs for 11 Wednesday evenings in a row and covers …

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in Technical Analysis

Technical Analysis Tutorial: Chart Patterns (Continuation)

In this article we’re going to have a look at continuation patterns. These are in contrast to the reversal patterns we’ve already treated in a previous blog post here. My main source is the comprehensive Technical Analysis of the Financial Markets by John J. Murphy (purchase here in association with FuturesTechs).
As the name suggests, continuation patterns imply that the …

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in Technical Analysis

Technical Analysis Tutorial: Chart Patterns (Reversal)

One of the premises of tecnical analysis is that price patterns tend to repeat themselves. But what are these patterns? Today, we’re going to lookat reversal patterns, i.e. where a change of trend is indicated.
Perhaps the most famous of these is the Head and Shoulders pattern.

Here is the Dow weekly candlestick chart, showing how this topped out …

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in Technical Analysis

Technical Analysis Tutorial: Ichimoku Charts

Ichimoku Charts are a tool many traders swear by, and which we may occasionally use as an ingredient in our daily analysis. This article explains the basics.
The main source I’m using will be “Ichimoku Charts” by Nicole Elliott, an excellent book which you can purchase from the Global Investor Bookshop by clicking here.
Part I: Construction
We start with …

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in Technical Analysis

Technical Analysis Tutorial: The Stochastic Oscillator

As part of our continued efforts to explain the major technical indicators to our clients, what follows is a simple explanation of the Stochastics momentum indicators often used in our analysis.
Originally devised by George C. Lane in the 1950s, the Stochastic oscillator is one of the easiest indicators to interpret. It tells us where the price sits in relation …

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