Naked Forex Trading

Naked Forex Trading

Naked forex trading is defined as trading without the help of indicators. It can also be called price action trading. Naked trading can be considered a type of technical analysis because it is the only information a trader has at his/her disposal. What is the naked forex trading? The concept of naked trading is based on the current market situation. It does not rely on complicated indicators; rather, it focuses on the price in the present. The naked trading is all about what traders can see on the candlestick charts, and then make their trading decisions. Indicators are usually based on …READ MORE

What Is The Rounding Bottom Pattern & How To Trade With It

Rounding Bottom Pattern

The Rounding Bottom is a chart pattern that identifies a series of price movements. These price fluctuations appear like an alphabet U. What is the Rounding Bottom pattern? As its name suggests, Rounding Bottoms is a kind of slope that occurs after a long downtrend. The Rounding Bottoms mention that the price is about to reverse. Usually, traders look for the pattern on a weekly or a monthly chart; however, Rounding Bottoms rarely emerge on the chart. The Rounding Bottom signifies that there is a strong supply, making the price decline. After this, the upward movement happens only when the …READ MORE

What Is The Volatility Index & How To Trade With It

Volatility Index

The Volatility Index, or VIX, is a market index that represents the market’s volatility of the next 30 days. It was created by CBOE (Chicago board options exchange) in 1993 for the S&P 500 Index. Since then, the VIX is commonly used as a gauge of U.S. equity market volatility. The VIX provides a measure of market risk and traders’ sentiments. It is also called “Fear Gauge” or “Fear Index.” What is the Volatility Index? Volatility is the measurement of price movements that asset experiences over a certain period. The stronger the price fluctuations, the higher the volatility of an …READ MORE

What Are Failure Swings & How To Trade Them

Failure Swings

In his book, J. Welles Wilder, New Concepts in Technical Trading Systems describes strong market reversals. He used the RSI (relative strength index) to measure these swings. He then gave these sharp price movement names of failure swings. There are plenty of indicators like the MACD, CCI, RSI, and the Stochastics that are plotted separately on the chart. They all give failure swings. However, almost all technical indicators show failure swings in one form or the other. What are Failure Swings? According to J. Welles, failure swings mostly occur in momentum oscillators because they show price movements in a specific …READ MORE

What Is The Triple Top Pattern & How To Trade With It

Triple Top Pattern

The Triple Top pattern is a type of technical analysis that is used to try and predict possible market reversals. What is the Triple Top pattern? Consisting of three tops or peaks, the Triple Top identifies downward momentum of the price and surface in an uptrend. The formation of the Triple Top happens when the price creates three peaks at an equal level. These peaks form resistance levels, and the low points between these peaks are the swing lows. After the appearance of the third peak, the Triple Top pattern completes. For example, assume the price of EUR/USD makes its …READ MORE

What Is The Triple Bottom Pattern & How To Trade With It

Triple Bottom Pattern

A Triple Top pattern is a form of technical analysis that is used for helping to anticipate bullish market reversals. What is the Triple Bottom pattern? The Triple Bottom compromises three bottoms or troughs in a downtrend and marks the change in trend from bearish to bullish. The formation of the Triple Bottom takes place when the price creates three troughs at an equal level. These troughs form a support level. The occurrence of the third trough confirms the Triple Bottom pattern. To identify the pattern. Traders need to remember these points: There prevailing trend of the market should be …READ MORE

What Is The Flag Chart Pattern & How To Trade With It

Flag Chart Pattern

The Flag pattern is used as an entry point for the continuation of a prevailing trend. The Flag is a price pattern that moves from a shorter timeframe to counter the price trend in a longer timeframe. The pattern got its name “Flag,” as its structure looks similar to the Flag on a flagpole. What is the Flag chart pattern? The flag pattern identifies the possible continuation of a preceding trend from a previous point against the same direction. Generally, Flags are areas of tight consolidation in price action. It shows that a counter-trend move after a sharp price fluctuation. …READ MORE

What Is The Double Top Candlestick Pattern & How To Trade With It

Double Top Pattern

The Double Top is a bearish reversal pattern that appears after the price reaches a high two times, and there is a decline between them. What is the Double Top pattern? The Double Top is a standard pattern with two highs and one low to form a reversal pattern. The central part of the pattern is the dropping of the price between two highs. The two highs are known as tops and show a resistance line. In comparison, the decline in price shows a support level. After the second top, the price rally downwards, and this creates a neckline between …READ MORE

What Are Candlestick Patterns & How To Trade With Them

Candlestick Patterns

Candlestick patterns are one of the most commonly used trading patterns. A Japanese man Homa, in the 1770s, discovered the candlestick patterns while studying the supply and demand of rice prices. What are Candlestick patterns? The candlestick patterns represent price moves by measuring the market sentiment. The pattern has multiple candles of different colors and sizes, with each candle or multiple candles signifying a certain pattern. Traditionally, a bullish candle is blue or white, and the bearish candle is red or black, depending on the chart setup. Like bars, a single candle has a real body, containing a price high, …READ MORE