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 measured in decimal form – and they serve to reflect the extent to which the pairs … Read more

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’ in itself to be somewhat intimidating. The easiest way to … Read more

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 uptrend followed by three consecutive Dojis … Read more

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 technical analysis. Dow … Read more

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 coming at periodic intervals. It uses … Read more