Technical Analysis

Significance of Volume in Trading

Volume refers to the number of contracts of a security that are traded at a given time. In the context of technical analysis, trading volume is a significant indicator that is used to measure the strength of an upwards or downwards movement. A market move that is accompanied by heavy volume is cons

Gann’s 9-Sided Numbered Square

By Earik Beann ©2008, Reprinted with permission of Traders World Magazine (www.tradersworld.com) One of the things that you come to realize after studying Gann for even a short amount of time is that he never actually put down the tools he used to trade markets. So he would describe a general

Trend Analysis using Open Interest and Volume

Open Interest (also known as Open Contracts or Open Commitments) refers to the number of active or open contracts for any given security. It applies to the futures and options markets but not to stocks. In the futures market it refers to the total number

Using Currency Correlations in Forex Trading

Very often currency pairs are closely related to one another – and this is something that can be used to the Forex Traders advantage. Correlation analysis helps you understand these relationships. Positive and negative correlations between currency pairs are

Using Logarithmic Charts

By Alan Hull Website: AlanHull.com The science of technical analysis can be daunting for the newcomer. One of the most intimidating areas is the use of logarithmic charts. Adults who weren’t paying attention in their Math’s classes in High School will find the word ‘Logarithm&#

Tri-Star Candlestick Formation

The Tri-Star is a three candle reversal pattern, consisting of three consecutive Dojis. The formation occurs after an uptrend or downtrend. In the case of a bullish Tri-Star formation the second Doji candlestick gaps below the first and third. In a bearish Tri-Star formation, the market is in an upt

Introduction to Dow Theory

Charles Dow never wrote a book containing his theory, rather it was set out in a number of editorials published in the Wall Street Journal. In 1903 S.A. Nelson compiled the essays into a book called The ABC of Stock Speculation. Dow Theory provideded the foundation and cornerstone of the field of te

Introduction to CCI

Donald Lambert’s CCI compares current price with a moving average over a selected timeframe (usually 20 days). He normalizes the oscillator by using a divisor based on mean deviation. The indicator is based on the idea that commodities (or stocks or bonds) move in cycles, with highs and lows c

Integrated Pitchfork Analysis

by Dr Mircea Dologa, MD, CTA PitchforkTrader.com This article was first published by The TRADER’s Journal, Volume 2 Issue 1 We firmly believe that a trader’s consistency must pass through a full comprehension of the context of the market. No action can be taken before we know exactly: where are

Inside the MACD Indicator

By Alan Hull Website: AlanHull.com The MACD, Moving Average Convergence Divergence, indicator is probably the most popular indicator in use today. It is also one of the most misunderstood, with it often being described amongst chartists as ‘An average of an average’. Before we begin to disse