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video (from youtube for example) about forex and financial market in
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Ichimoku - Advanced Ichimoku Strategies Additional Criteria
The Key Reversal - Part 7 of a video series discussing short term price bar reversals such as the bearish rejection, the bullish rejection, the open close reversal, the closing price reversal, the hook reversal, the key reversal, the island reversal and the pivot point reversal.
31. How to trade support/resistance bounce in Forex
Forum on trading, automated trading systems and testing trading strategies
Indicators: Support and Resistance
newdigital, 2013.09.23 10:15
Support and Resistance Technical Indicator
Support and Resistance is one of the widely used
concepts in Forex trading. Most traders plot horizontal lines to show
support levels and resistance levels.
There is also an indicator used to plot Support levels automatically and indicate the resistance and support levels.
When it comes to these levels price can either bounce off these levels or break these levels.
If a resistance level is broken price will move higher and the resistance level will turn to a support.
If a support level is broken price will move lower and the support level will turn to a resistance.
Price where the majority of investors believe that
prices will move higher, while resistance levels indicate the price at
which a majority of investors feel prices will move lower.
Once price has broken through a support level or a
resistance level then it is likely that the price will continue moving
in that particular direction until it gets to the next support or
The more often a support or resistance level is
tested or is touched by the price and bounces, the more major that
particular support level or resistance level becomes.
These levels are calculated a trend lines method.
In an upward trend the resistance and support will generally head upwards
In a downward trend the resistance and support will generally head downwards
5. As a trained clinical psychologist, Gary understands the immense importance of maintaining the proper mindset when trading. He advocates Eastern practices like meditation and yoga, as well as the simple concept of mindfulness -- i.e. being in the moment.======
MT5 CodeBase - NonLagDot - Nonlagdot is the supply and demand indicator that calculates a possible trend considering market forces domination.
Lesson 1 -- Fibonacci Number Sequence
The Fibonacci Sequence is most likely the most influential series of
numbers in the world. It is also likely that you encounter the numerical
pattern everyday. This mathematical series was discovered by Leonardo
Fibonacci of Pisa in the early thirteenth century and was outlined in
his book, Book of Calculations. 1, 1, 2, 5, 8, 13, 21, 34, 55, etc. are
the "golden" numbers that are found in geometry, art, anatomy, music,
biology, botany, conchology, and even trading. After the two starting
values, each following number is the sum of the two proceeding numbers.
Fn=Fn-1 + Fn-2How does this relate to trading? The ratio of any
number to the next larger number of the sequence is 62% (or specifically
61.8%), the "Golden" ratio. The inverse of that Fibonacci ratio is 38%
(or specifically 38.2%). Mathematical psychologist, Vladimir Lefebvre
suggested that traders exhibit positive and negative evaluations of the
opinions they hold about the market. These negative and positive
evaluations have direct correlation with the retracement percentage seen
in market analysis.
If you are interested the Fibonacci Sequence you may also want to obtain more information on Elliot Wave and W. D. Gann.
Indicators: Fibonacci retracement
newdigital, 2013.11.21 12:06
Fibonacci Retracements (based on stockcharts article)
Fibonacci Retracements are ratios used to identify potential reversal
levels. These ratios are found in the Fibonacci sequence. The most
popular Fibonacci Retracements are 61.8% and 38.2%. Note that 38.2% is
often rounded to 38% and 61.8 is rounded to 62%. After an advance,
chartists apply Fibonacci ratios to define retracement levels and
forecast the extent of a correction or pullback. Fibonacci Retracements
can also be applied after a decline to forecast the length of a counter
trend bounce. These retracements can be combined with other indicators
and price patterns to create an overall strategy.
This article is not designed to delve too deep into the mathematical
properties behind the Fibonacci sequence and Golden Ratio. There are
plenty of other sources for this detail. A few basics, however, will
provide the necessary background for the most popular numbers. Leonardo
Pisano Bogollo (1170-1250), an Italian mathematician from Pisa, is
credited with introducing the Fibonacci sequence to the West. It is as
0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610……
The sequence extends to infinity and contains many unique mathematical properties.
1.618 refers to the Golden Ratio or Golden Mean, also called Phi. The
inverse of 1.618 is .618. These ratios can be found throughout nature,
architecture, art and biology. In his book, Elliott Wave Principle,
Robert Prechter quotes William Hoffer from the December 1975 issue of
….the proportion of .618034 to 1 is the mathematical basis for the
shape of playing cards and the Parthenon, sunflowers and snail shells,
Greek vases and the spiral galaxies of outer space. The Greeks based
much of their art and architecture upon this proportion. They called it
the golden mean.
Retracement levels alert traders or investors of a potential trend
reversal, resistance area or support area. Retracements are based on the
prior move. A bounce is expected to retrace a portion of the prior
decline, while a correction is expected to retrace a portion of the
prior advance. Once a pullback starts, chartists can identify specific
Fibonacci retracement levels for monitoring. As the correction
approaches these retracements, chartists should become more alert for a
potential bullish reversal. Chart 1 shows Home Depot retracing around
50% of its prior advance.
The inverse applies to a bounce or corrective advance after a decline.
Once a bounce begins, chartists can identify specific Fibonacci
retracement levels for monitoring. As the correction approaches these
retracements, chartists should become more alert for a potential bearish
reversal. Chart 2 shows 3M (MMM) retracing around 50% of its prior
Keep in mind that these retracement levels are not hard reversal points.
Instead, they serve as alert zones for a potential reversal. It is at
this point that traders should employ other aspects of technical
analysis to identify or confirm a reversal. These may include
candlesticks, price patterns, momentum oscillators or moving averages.
The Fibonacci Retracements Tool at StockCharts shows four common
retracements: 23.6%, 38.2%, 50% and 61.8%. From the Fibonacci section
above, it is clear that 23.6%, 38.2% and 61.8% stem from ratios found
within the Fibonacci sequence. The 50% retracement is not based on a
Fibonacci number. Instead, this number stems from Dow Theory's assertion
that the Averages often retrace half their prior move.
Based on depth, we can consider a 23.6% retracement to be relatively shallow. Such retracements would be appropriate for flags
or short pullbacks. Retracements in the 38.2%-50% range would be
considered moderate. Even though deeper, the 61.8% retracement can be
referred to as the golden retracement. It is, after all, based on the
Shallow retracements occur, but catching these requires a closer watch
and quicker trigger finger. The examples below use daily charts covering
3-9 months. Focus will be on moderate retracements (38.2-50%) and
golden retracements (61.8%). In addition, these examples will show how
to combine retracements with other indicators to confirm a reversal.
Chart 3 shows Target (TGT) with a correction that retraced 38% of the
prior advance. This decline also formed a falling wedge, which is
typical for corrective moves. The combination raised the reversal alert.
Chaikin Money Flow turned positive as the stock surged in late June,
but this first reversal attempt failed. Yes, there will be failures. The
second reversal in mid July was successful. Notice that TGT gapped up,
broke the wedge trend line and Chaikin Money Flow turned positive (green
Chart 4 shows Petsmart (PETM) with a moderate 38% retracement and other
signals coming together. After declining in September-October, the stock
bounced back to around 28 in November. In addition to the 38%
retracement, notice that broken support turned into resistance in this
area. The combination served as an alert for a potential reversal.
William %R was trading above -20% and overbought as well. Subsequent
signals affirmed the reversal. First, Williams %R moved back below -20%.
Second, PETM formed a rising flag and broke flag support with a sharp
decline the second week of December.
Chart 4 shows Pfizer (PFE) bottoming near the 62% retracement level.
Prior to this successful bounce, there was a failed bounce near the 50%
retracement. The successful reversal occurred with a hammer on high
volume and follow through with a breakout a few days later.
Chart 5 shows JP Morgan (JPM) topping near the 62% retracement level.
The surge to the 62% retracement was quite strong, but resistance
suddenly appeared with a reversal confirmation coming from MACD
(5,35,5). The red candlestick and gap down affirmed resistance near the
62% retracement. There was a two day bounce back above 44.5, but this
bounce quickly failed as MACD moved below its signal line (red dotted
Fibonacci retracements are often used to identify the end of a
correction or a counter-trend bounce. Corrections and counter-trend
bounces often retrace a portion of the prior move. While short 23.6%
retracements do occur, the 38.2-61.8% covers the more possibilities
(with 50% in the middle). This zone may seem big, but it is just a
reversal alert zone. Other technical signals are needed to confirm a
reversal. Reversals can be confirmed with candlesticks, momentum indicators, volume or chart patterns. In fact, the more confirming factors the more robust the signal.
A look at inflation and deflation, the key issues in any economic crisis, and how understanding how those issues are playing out will help individuals develop a strategy for preserving and growing their wealth in the US economic crisis.
Ichimoku - Advanced Ichimoku Strategies Breakout Qualifiers
The Island Reversal - Part 8 of a video series discussing short term price bar reversals such as the bearish rejection, the bullish rejection, the open close reversal, the closing price reversal, the hook reversal, the key reversal, the island reversal and the pivot point reversal.
32. How to trade Stochastics divergence in Forex
newdigital, 2013.07.18 16:54
See the chart below for an example of this :
For Stochastics to close below 80 in a downtrend or above 20 in an
uptrend is a much stronger signal than if Stochastics simply goes above
or below those levels during the course of the time that the candle is
For example, let's say that a trader is using a 1 hour chart. When that 1
hour candle closes at the end of the hour, the trader can check
Stochastics to see if the two moving averages were above 20 or below 80
after the close occurred. That will confirm that the indicator did
indeed close above or below the requisite level.
newdigital, 2013.07.19 09:16
By slowing the movement of the indicator down, we will see fewer signals
to buy or sell on the chart, but they should be more reliable signals.
By using a larger value in calculating the raw value of Stochastics, we
slow the indicator down even more. This is why I recommend to traders
using FX charts to use the Slow Stochastics with values of 15,5,5. This
combination offers fairly reliable signals that can offer solid entries
into trading opportunities. The chart below shows the difference between
Fast Stochastics with values of 5,5 compared to Slow Stochastics with
values of 15,5,5.
You can see how much easier it is to identify the signals using the Slow
Stochastics. Being able to use the technical tool effectively is most
of the battle. By keeping things simple and consistent, we should start
to see consistent results in our trading.
As with all indicators, entering a trade only when the indicator
generates an entry that is in the direction of the trend can result in a
higher probability of success.
Market Condition Evaluation based on standard indicators in Metatrader 5
newdigital, 2013.02.12 16:44
I promissed here to describe something about divergence. yes, it is related to this thread Market Condition Evaluation based on standard indicators in Metatrader 5
We can write about divergence from the following sources:
newdigital, 2013.02.12 16:45
Or ... to make it shorter - we can see the rules from the image:
Renko Bar |Day Trading | What are Renko Bars | How do Renko Bars Work | Part 1
Renko Bars can be viewed as merely a different way to reflect price on a
chart; in my opinion, I feel they paint the clearest picture of price
Here are my top 6 reasons of why I choose Renko Bars and charts:
newdigital, 2013.09.03 11:03
Renko (extraction from Achelis - Technical Analysis from A to Z)
The Renko charting method is thought to have acquired its name from "renga"
which is the Japanese word for bricks. Renko charts are similar to Three Line Break charts except that in a Renko chart,
a line (or "brick" as they're called) is drawn in the direction of the prior
move only if prices move by a minimum amount (i.e., the box size). The bricks
are always equal in size. For example, in a 5-unit Renko chart, a 20-point rally
is displayed as four, 5-unit tall Renko bricks.
Kagi charts were first
brought to the United States by Steven Nison when he published the book, Beyond Candlesticks.
Basic trend reversals are signaled with the emergence of a new white or black
brick. A new white brick indicates the beginning of a new up-trend. A new black
brick indicates the beginning of a new down-trend. Since the Renko chart is a
trend following technique, there are times when Renko charts produce whipsaws,
giving signals near the end of short-lived trends. However, the expectation with
a trend following technique is that it allows you to ride the major portion of
Since a Renko chart isolates the underlying price trend by filtering out the
minor price changes, Renko charts can also be very helpful when determining
support and resistance levels.
Renko charts are always based on closing prices. You specify a "box size"
which determines the minimum price change to display.
To draw Renko bricks, today's close is compared with the high and low of the
previous brick (white or black):
If the closing price rises above the top of the previous brick by at least
the box size, one or more white bricks are drawn in new columns. The height of
the bricks is always equal to the box size.
If the closing price falls below the bottom of the previous brick by at least
the box size, one or more black bricks are drawn in new columns. Again, the
height of the bricks is always equal to the box size.
If prices move more than the box size, but not enough to create two bricks,
only one brick is drawn. For example, in a two-unit Renko chart, if the prices
move from 100 to 103, only one white brick is drawn from 100 to 102. The rest of
the move, from 102 to 103, is not shown on the Renko chart.
newdigital, 2013.10.16 08:04
How to Use Renko Bricks and Moving Averages to Find Trades
To add a 13-period exponential moving average to the Renko chart, choose
EMA from the Add Indicator menu then change “Number of periods” to 13.
Notice the chart above which displays both Renko bars and a 13-period
exponential moving average. A simple system can be built around the
Renko bars and the moving average. When Renko price bars cross below the
moving average and turns red, traders can enter short and stay with the
trend until the Renko bars cross back above the moving average.
An initial stop could be placed just above the last blue Renko brick.
Keep in mind that in the above example, each brick is equal to five
pips. In the above example, the red circles mark where the Renko bars
crossed below the moving average. A trader can see that a number of pips
could have been gathered as the bars stayed below the moving average.
On the other hand, when the Renko bars change color and cross above the
moving average, traders can enter long placing stop just below the last
red Renko brick. The above chart shows in the green circles, points were
the Renko price bars moved above the moving average generating a clear
Renko charts, without the dimension of time, may take a little getting a
little used to. But once you get the hang of them, you may find it
difficult to go back to the candles. Adding a moving average gives
excellent signals for entry and exit. Marrying them up with other
indicators can magnify the benefits of trading without noise and scary