Posts Tagged ‘technical indicators’
Applying Fibonacci to Stock Market Patterns: It’s easier than you might think!
Patterns are everywhere. We see them in the ebb and flow of the tide, the petals of a flower, or the shape of a seashell. If we look closely, we can see patterns in almost everything around us. The price movements of financial markets are also patterned, and Elliott wave analysis gives you the tools to interpret those patterns.
The Fibonacci sequence is vital to Elliott wave analysis — as a matter of fact, R.N. Elliott wrote that the Fibonacci sequence provides the mathematical basis of the Wave Principle. Once you understand the Fibonacci sequence, it’s easy to apply it to the markets you trade.
The following excerpt is from a new eBook from Elliott Wave International Senior Tutorial Instructor Wayne Gorman: How You Can Use Fibonacci to Improve Your Trading. Wayne explains how the Fibonacci sequence is derived and how it can be used to understand market behavior. Read the rest of this entry »
Technical Indicators: A Love-Hate Relationship
Part I: How One Technical Indicator Can Identify Three Trade Setup
Trading using technical indicators — such as the MACD, for example — can do one of two things: help you or hurt you.
Elliott Wave International’s Jeffrey Kennedy explains what he loves and hates about technical indicators and shows you how he uses them to his advantage in this excerpt from his FREE eBook, The Commodity Trader’s Classroom.
I love a good love-hate relationship, and that’s what I’ve got with technical indicators. Technical indicators are those fancy computerized studies that you frequently see at the bottom of price charts that are supposed to tell you what the market is going to do next (as if they really could). The most common studies include MACD, Stochastics, RSI, and ADX, just to name a few.
The No. 1 (and Only) Reason to Hate Technical Indicators Read the rest of this entry »
Using Moving Averages To Improve Your Trading
The Trend Is Your Friend: Using Moving Averages To Improve Your Trading
By Elliott Wave International
Many traders and investors use technical indicators to support their analysis. One of the most popular and reliable also happens to be an indicator that has been around for years and years — moving averages.
A moving average is simply the average value of data over a specific time period. Analysts use it to figure out whether the price of a stock or a commodity is trending up or down. It effectively “smooths out” the daily fluctuations to provide a more objective way to view a market.
Although simple to construct, moving averages are dynamic tools, because you can choose Read the rest of this entry »
Technical formations made easy
This particular technical formation has been around for years and continues to produce good profits for traders who can spot it, and better yet, take advantage of it.
In this new short video, I’m going to share the market, the pattern, and a price projection where we think this market is headed based on our Trade Triangle technology.
I hope that this educational video will help you spot this very same technical formation in the future. The video is extremely short and will only take a few minutes of your time, however, the lesson is priceless. Read the rest of this entry »
Beginner’s Guide To Understanding Market Charts
You don’t need computerized technical analysis to understand market trends
Being able to “read” a market chart is a rare skill even among professionals. Most investors focus on “the fundamentals”: Things like unemployment numbers, earnings, Fed statements, etc. But just like a picture is worth a thousand words, a chart can tell you a lot about technical conditions of the market — at a glance.