Something Interesting in Financial Video February 2014 - page 3
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Ichimoku - Multi Time Frame Analysis
This is short 2 minute video
3 Candlestick Patterns For Market Reversals - Morning Doji Star, Evening Doji Star, Island Reversal Patterns
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Something Interesting to Read February 2014
newdigital, 2014.02.02 08:57
High Profit Candlestick Patterns : Stephen Bigalow
High profit trading patterns, revealed by utilizing time-honored Japanese candlestick signals. A straight-forward approach to understanding and exploiting market opportunities. Practical applications to predict stock price movements consistently and profitably, a winning system in good times or bad! All detailed in: "High Profit Candlestick Patterns: Turning Investor Sentiment into Profits" By Stephen W. Bigalow
Don’t play the market, Beat the Market! Stephen W. Bigalow’s first book "Profitable Candlestick Trading" taught the novice investor how to quickly identify the best trading opportunities. Now his new book, "High Profit Candlestick Patterns" takes his teaching to the next level. Combining the proven results of Japanese Candlestick charting with effective Western technical analysis, produces even higher profit wealth-building stock selection techniques. Learn the key to profitable stock selection with this safer approach to investing and avoid expensive trading mistakes. Quickly learn the simplest, yet most intelligent, approach to stock selection. Candlestick signals visually produce compelling results. Japanese candlestick charting techniques, integrated with statistically proven Western technical analysis, produces an even more powerful investment platform. The ability to recognize trading patterns in their very early stages empowers an investor with high profit trading strategies.
For the technical investor, the combined analysis provides potent trading programs. The fundamental investor gains tremendous insights into the timing of positions. The introduction of cutting-edge computer generated technical analysis, with the world's most proven trading technique, becomes a powerful tool for understanding the movements of the markets. Discover simple techniques that put the probabilities highly in your favor.
Japanese candlestick signals provide an immense amount of information. They graphically depict what is occurring in investor sentiment. This alone provides a huge advantage for the investor. Having the ability to identify reversals in price trends, utilizing statistically proven and utilized signals, allows an investor to develop high profit trading strategies. The psychological elements not only reveal trend reversals, but they provide the insights for understanding why that reversal is occurring. This becomes a very powerful investment tool.
The graphic illustrations in this book are simple common sense revelations. Utilizing candlestick signals in conjunction with Western technical patterns produces two strong investment elements. First, it allows for the recognition of the optimal times for entering a trade. Second, the candlestick signals revealed immediately when the trend pattern is not performing correctly, allowing for quick exits.
You will receive a whole new perspective for profitably investing in the markets. You do not have to learn formulas nor develop investing talents. The combination of candlestick signals with easy-to-identify trading patterns will vastly expand your investment confidence. The self-mastery of profitable investing is greatly simplified with quick visual evaluations.
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Libraries: MQL5 Wizard - Candlestick Patterns Class
newdigital, 2013.09.14 19:53
Evening Star
The Evening Star Pattern is a bearish reversal pattern, usually occuring at the top of an uptrend. The pattern consists of three candlesticks:
The first part of an Evening Star reversal pattern is a large bullish green candle. On the first day, bulls are definitely in charge, usually new highs were made.
The second day begins with a bullish gap up. It is clear from the opening of Day 2 that bulls are in control. However, bulls do not push prices much higher. The candlestick on Day 2 is quite small and can be bullish, bearish, or neutral.
Generally speaking, a bearish candle on Day 2 is a stronger sign of an impending reversal. But it is Day 3 that is the most significant candlestick.
Day 3 begins with a gap down, (a bearish signal) and bears are able to press prices even further downward, often eliminating the gains seen on Day 1.
Evening Star Candlestick Chart ExampleThe chart below of Exxon-Mobil (XOM) stock shows an example a Evening Star bearish reversal pattern that occured at the end of an uptrend:
Day 1 of the Evening Star pattern for Exxon-Mobil (XOM) stock above was a strong bullish candle, in fact it was so strong that the close was the same as the high (very bullish sign). Day 2 continued Day 1's bullish sentiment by gapping up. However, Day 2 was a Doji, which is a candlestick signifying indecision. Bulls were unable to continue the large rally of the previous day; they were only able to close slightly higher than the open.
Day 3 began with a bearish gap down. In fact, bears took hold of Exxon-Mobil stock the entire day, the open was the same as the high and the close was the same as the low (a sign of very bearish sentiment). Also, Day 3 powerfully broke below the upward trendline that had served as support for XOM for the past week. Both the trendline break and the classic Evening Star pattern gave traders a signal to sell short Exxon-Mobil stock.
The Evening Star pattern is a very powerful three candlestick bearish reversal pattern. The bullish equivalent of the Evening Star is the Morning Star patternForum on trading, automated trading systems and testing trading strategies
Libraries: MQL5 Wizard - Candlestick Patterns Class
newdigital, 2013.09.18 12:41
Morning Star
The Morning Star Pattern is a bullish reversal pattern, usually occuring at the bottom of a downtrend. The pattern consists of three candlesticks:
The first part of a Morning Star reversal pattern is a large bearish red candle. On the first day, bears are definitely in charge, usually making new lows.
The second day begins with a bearish gap down. It is clear from the opening of Day 2 that bears are in control. However, bears do not push prices much lower. The candlestick on Day 2 is quite small and can be bullish, bearish, or neutral (i.e. Doji).
Generally speaking, a bullish candle on Day 2 is a stronger sign of an impending reversal. But it is Day 3 that holds the most significance.
Day 3 begins with a bullish gap up, and bulls are able to press prices even further upward, often eliminating the losses seen on Day 1.
Morning Star Candlestick Chart ExampleThe chart below of the S&P 400 Midcap exchange traded fund (MDY) shows an example a Morning Star bullish reversal pattern that occured at the end of a downtrend:
Day 1 of the Morning Star pattern for the Midcap 400 (MDY) chart above was a strong bearish red candle. Day 2 continued Day 1's bearish sentiment by gapping down. However, Day 2 was a Doji, which is a candlestick signifying indecision. Bears were unable to continue the large decreases of the previous day; they were only able to close slightly lower than the open.
Day 3 began with a bullish gap up. The bulls then took hold of the Midcap 400 exchange traded fund for the entire day. Also, Day 3 broke above the downward trendline that had served as resistance for MDY for the past week and a half. Both the trendline break and the classic Morning Star pattern gave traders a signal to go long and buy the Midcap 400 exchange traded fund.
The Morning Star pattern is a very powerful three candlestick bullish reversal pattern. The bearish equivalent of the Morning Star is the Evening Star pattern08: CONSUMER CONFIDENCE INDEX
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CCIThis index is an attempt to measure consumer optimism. It is calculated since 1967. Its base value is 100. The index is calculated based on the monthly survey of 5,000 families for a number of questions:
The index has a moderate impact on the market because it can fail to reflect the real state of the economy. However, it is traditionally used for predicting trends in employment and the general state of the economy. Growth of the index is a good factor for the national economy and leads to the growth of the dollar.
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In this video you will learn the "best" markets to trade, how I set up my charts, what indicators I use for day trading and the settings and how to easily identify the beginning and the end of a trend.
How to make money in crude oil
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Indicators: USDx dollar index
newdigital, 2013.11.06 15:02
Dollar Index Futures & Correlations to Crude Oil & Gold Futures Trading
Scalpers, Intra-Day, Position & Swing traders alike benefit from the correlations seen between the US Dollar Futures Index (DX) & Commodity Futures such as Gold (GC) & Crude Oil (GC). The US Dollar Index Futures is one of the most widely-recognized electronically-trader markets in the world. Comparing the USD against a basket of major currencies, this futures index has relatively low daily trading volume compared to Euro or Pound, and is primarily used for its strong correlations to aid traders in many different situations. Professional traders watch the Dollar Index at the times it is most active, which occurs from 8am to 12pm EST during trading days. The times also correspond well with Crude Oil & Gold futures, which also see more activity at these times as well.There are many ways to use the US Dollar Index for trading opportunities, but most traders find the DX to be most consistently-used as a filter for high-risk trades.Let's first discuss the basic correlation that traders use. There is a negative correlation between the DX and almost every other market that traders watch. The Dollar is negative to other currencies b/c it's the world reserve currency, and it's negative to commodities b/c of the simple laws of supply and demand. Let's focus on the correlation to Gold & Crude Oil Futures.
As traders, there are lots of different times in the day when the dollar begins to move more dramatically, such as the open of the US Markets @ 9:30am EST, before and after major news events such as Jobless Claims Reports or FOMC News. We look for the Dollar to begin its trend, and using the negative correlation between these markets, we look for crude oil & gold opportunities to the opposite of the dollar's trend. When the Dollar is trending, traders use Breakout Patterns to capitalize on this correlation. With the dollar rising, look for high-percentage entries to the short side of Gold or Crude Oil Futures.
Most traders will use the Dollar correlation as a filter because it allows them to avoid high-risk entries on Gold & Crude Oil Futures. Without a trend on Dollar, the Gold & Crude Oil Futures also show flat price action, and tend to reverse their current trends often. The dollar has a tendency to get very choppy during indecisive times in the market, and we tend to stay away from higher-risk trading on Crude Oil & Gold during these times.
Another important thing to watch on the Dollar is key Support & Resistance around simple chart patterns. For example, using a Head & Shoulders pattern on the Dollar, traders will avoid trading Gold & Crude Oil when the Dollar attempts to complete the trend reversal. Smart traders will wait to trade the reaction to the move around these extreme levels, rather than trying to be the first to enter the market when the Dollar here. In closing, the Dollar Index Futures can be used very effectively with a negative correlation with many of the market we love to trade. Of all the uses for this index, the most effective way most traders use the Dollar is as a filter, to avoid taking high-risk trades on other markets such as Crude Oil & Gold.
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Something Interesting in Forex Video May 2013
newdigital, 2013.05.27 16:57
Trading the Oil Price
Crude oil can be effected by political tensions and people's views on the economy; it is a very volatile market and can easily move 200 to 400 points a day. It is as such one of the more volatile markets out there.
"Blowing Financial Bubbles" by Jim Sloman
Jim Sloman explains how the Fed and other central banks blow financial bubbles, and what the unexpected consequences are to society.
Supply and Demand Tips by Mark Chapman
Ichimoku - Senkou Span A And Senkou Span B
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Something Interesting in Financial Video October 2013
newdigital, 2013.10.28 11:24
Ichimoku - Senkou Span A And Senkou Span B
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Senkou Span A - 1st leading lineThe average of the Tenkan Sen and Kijun Sen, plotted 26 days ahead.
(Tenkan Sen + Kijun Sen) / 2 plotted 26 days ahead
The Senkou Span A, also known as the 1st leading line, is a moving average of the Tenkan Sen and Kijun Sen and is plotted 26 trading days ahead, i.e. into the future. It is primarily used in combination with the Senkou Span B to form the Kumo (cloud), to indicate probable future support and resistance levels.
As price tends to respect prior support and resistance levels, time-shifting this line forward gives a visual representation of how the price on a date relates to support and resistance from 26 trading days prior.
The trend is deemed to be bearish when the Senkou Span A is below the Senkou Span B and bullish when it is above.
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Senkou Span B - 2nd leading lineThe average of the highest high and lowest low over the last 52 days, plotted 26 days ahead.
(Highest high + Lowest low) / 2 over the last 52 trading days plotted 26 days ahead.
The Senkou Span B, also known as the 2nd leading line, is a moving average of the highest high and lowest low over the last 52 trading days is plotted 26 trading days ahead, i.e. into the future. As such it is the longest term representation of equilibrium in the Ichimoku system. It is primarily used in combination with the Senkou Span A to form the Kumo (cloud), to indicate probable future support and resistance levels.
As price tends to respect prior support and resistance levels, time-shifting this line forward gives a visual representation of how the price on a date relates to support and resistance from 52 trading days prior.
The trend is deemed to be bearish when the Senkou Span A is below the Senkou Span B and bullish when it is above.
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This is practical example about how to use different indicators for technical analysis. As I understand - the author is using Aroon Oscillator in overbought/oversold way (and some other indicators as well ... I just saw MACD for divergence for example).
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Indicators: Aroon
newdigital, 2013.08.24 12:57
Aroon Indicator Technical Indicator :
Developed by Tushar Chande
The Aroon indicator is used to determine if a trading instrument is trending or not.
It is also used to indicate how strong the trend is.
The Aroon indicator is used to identify the beginning of a trend, the name aroon means morning or dawn. This indicator is used to identify a trend early thus its name.
The Aroon indicator has two lines
Aroon UP
Percentage of time between the start of a time period and the highest point that price has reached during that period.
If price sets a new high Aroon UP will be 100. For each new high Aroon stays at 100. However, if price moves down by a certain percentage, then that percentage is subtracted from the 100 and Aroon UP starts to move down. This means that if Aroon UP stays at 100 then price is making new highs but when it starts to move down then price is not making new highs.
If However price is making new lows for a particular price period then Aroon UP will be at Zero
Aroon DOWN
Aroon DOWN is Calculated the same as Aroon UP but this time using the lowest point instead of the highest point.
When a new low is set Aroon DOWN is at 100 and when a new high is set Aroon DOWN is at Zero.
Technical Analysis of Aroon Indicator
Aroon uses the 50 % level to measure momentum of the trend.
Buy Signal and exit signal
Aroon UP above 50 is a technical buy signal
Aroon UP dipping below 50 is an exit signal if you had bought the currency.
Sell Signal and exit signal
Aroon DOWN below 50 is a technical sell signal.
Aroon UP rising above 50 is an exit signal if you had sold the currency.
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Indicators: MACD
newdigital, 2013.08.01 09:16
MACD Oscillator Technical Analysis Fast Line and Signal Line
MACD is used in various ways to give technical analysis information.
MACD Construction
The MACD is constructed using two exponential moving averages and MACD indicator plots two lines. The two default exponential moving averages used are 12 and 26. Then a smoothing factor of 9 is also applied when drawing.
Summary of how MACD is plotted
MACD uses 2 EMAs + a smoothing factor (12, 26 Exponential Moving Averages and 9 smoothing periods)
MACD only plots two lines- the fast line and the signal line
Implementation
The MACD indicator implements the MACD line as a continuous line while the signal line is implemented as a histogram.
The fast line and signal line is used to generate trading signals using the crossover method.
There is also the center-line which is also known as the zero mark and it is a neutral point between buyers and sellers.
Values above the center-mark are considered bullish while those below are bearish.
The MACD being an oscillator indicator, oscillates above and below this center line.
This is the 9th video in a series on economic reports created for all markets, or for those who simply have an interest in economics. In this lesson we cover The University of Michigan's Index of Consumer Sentiment.
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University of Michigan Consumer Confidence IndexUniversity of Michigan Consumer Confidence Index is the survey of consumers' confidence in the current economic situation. The survey is conducted by the University of Michigan USA. It analyzes the desire of consumers to spend their money. The index is a leading indicator of consumer sentiment.
It has a limited impact on the market. Growth of the index leads to the growth of the dollar.
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