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Hello, my dear friends and the fellow community members.
In the article of the month of March, we learned about the ascending triangle pattern. There are a lot of chart patterns that we can learn. But I think that we should only focus on the most profitable chart patterns first. So in this month, I have come up with the very famous Head and Shoulder pattern. I got the idea of talking about Head and Shoulder pattern because I saw it emerging in many of the charts these days and it is very easy to visualize this pattern in the charts. I have included a few charts of April 2018 where this pattern had emerged.
A few facts about the Head and Shoulder pattern:
  • It is considered as the reversal pattern.
  • It has 4 necessary ingredients.
  1. The first shoulder,
  2. The head
  3. The second shoulder
  4. The neckline
  • Both shoulders should have almost the same height(although not necessary).
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Rosie avatar
Rosie 30 Apr.


ElizavetaKl avatar

Good luck

kish avatar
kish 3 May

хорошая работа

alphahavoc avatar

good job!

NAG avatar
NAG 12 May

гарна стаття

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1. Introduction
A lot of indicators and tools try to identify where the turning points may happen (the price levels of the turning points).But none of them, as far as I know, try to figure out when the turning points may happen (the time of the turning point).In this article we will do some simple statistical research to see if turning points tend to happen at certain times. We seek to know if any significant timing bias exists that can give us a trading edge.
2. The Traditional Way of Trading the Potential Turning Points
Pivot point, Fibonacci retracement, Round Numbers, Trend lines and previous highs & Lows are some of the widely used indicators and tools to determine intraday critical support and resistance levels.
  • Resistance is the ceiling price level at which supply (or selling) is thought to be strong enough to prevent the price from rising further.
  • Support is the floor price level at which demand is thought to be strong enough to prevent the price from declining further
Range traders watch these levels as a potential turning points to identify a valid trend reversal signal. At the same time, trend and breakout traders watch the same key levels closely to identify a valid…
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Apophis avatar
Apophis 8 Mar.

very interesting article

Kivetat avatar
Kivetat 9 Mar.

great job)))

Avnish26 avatar
Avnish26 9 Mar.

nice article

KRU9 avatar
KRU9 9 Mar.


rupesh1984 avatar
rupesh1984 25 Mar.

Very good work ;)

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Dans cet article je vais analyser quelques paires de devises sur le weekly et le daily time frame en vue de d'avoir une vision globale des mouvements qui peuvent se dessiner les jours prochains.
  • EURUSD: un trend baissier qui s'approche d'une zone de support.

Sur le weekly la paire évolue toujours dans un trading range qui a débuter Mars 2015, la récente baisse de la paire l'a amener tout près de la de support à 1.07, qui représente la borne basse du trading range.
Sur le daily nous constatons un très fort momentum, mais comme sur le weekly se mouvement est déjà arrivé à une zone de support.
L'achat de l'EURUSD quand il montrera un comportement bullish est très justifié. Sur le daily il suffira de quelque chandelier de reversement, sur les lower time frame il faudra attendre les premiers higher low.
  • AUDUSD: Zone d'incertitude

Sur le weekly la paire est dans un trend baissier très soutenu qui l'a conduit au alentours d'une zone de support de 0.68.
Le trend baissier risque de se convertir en trading range puisque la paire a construit son premier higher low et a casser le lower high à 0.7380.
En ce moment la paire est tout prés du 0.7830.
Sur le Daily la paire s'inscrit dans u…
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thedoctor avatar
thedoctor 31 Oct.


sonjatrader avatar

Well done!!

k_morocco avatar

VictoriaVika thedoctor sonjatrader thanks you a lot for your support and kind words

wmndave avatar
wmndave 16 Nov.


FXRabbit avatar
FXRabbit 23 Nov.

Good article!

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There is nothing worse than watching your trade be up with green pips for a while and see it completely reverse quickly later and take out your stop points lower.
Almost all FX traders has experienced this feeling firsthand, and if you didn't consider yourself lucky - it's a woe most traders face more often than you can imagine and is a perfect example of poor money management.
The markets can move fast, with gains turning into losses in a matter of minutes, making it critical to properly manage your capital.
One of the important rules of trading is to protect your profits - even if it means banking only few pips. Taking multiple trades with few pips at a time, that adds up to a respectable profits, this approach may seem like trading like slowly, but we must remember that the main point of trading is to minimize losses and along with that to make money as often as possible.
The most used and easiest way to not let a winner turn into a loser is to trail your stop loss level to breakeven point as soon as you have a good amount of pips (far enough from the entry point to not affect the open position by the market nose). This method can be enhanced by trailing again and again the s…
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VictoriaVika avatar

Good article!

WallStreet6 avatar

Thanks for reminding us about this important part of trading!

Natalia_Kisenko avatar

Useful article!

Margoshka avatar
Margoshka 10 Apr.


miriam1313 avatar
miriam1313 12 Apr.

I like it!

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From my experience in the forex market , I cannot imagine anyone can profit and accumulate profits without understanding the physiology of the doji , I believe that we –as traders- can trade without a lot of indicators but not without doji because it the alarm which warn us for trend reversal or at opposite it may indicates the trend continuation ,from this article you will see charts in a way you did not see before what is DOJI candlestic , doji is a candlestick in which the opening and closing prices are the same as shown below (Figure shows different formation of doji) In this article we will check the doji in the -most important frame- monthly frame in order to understand how the big movements in the market occur Note :in the forex market when the doji have small body , I accept it in some casesExample 1 : closure below resistance (Short or sell) :Let's see this doji in the Eur/Usd in the monthly frame , all the explanations are in the chart please read and concentrate Now we will check the weekly chart to decide the direction of eur / usd From the last example ,we can see how the doji can help us gain hundreds of pips with small stop loss . how to enter this trade ?? it is …
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khalidamassi avatar

thank you for support my bro ...EFEGEN

Delossan avatar
Delossan 29 Mar.

The doji can be good with other confirming tools.

SpecialFX avatar
SpecialFX 29 Mar.

I agree with previous comments that dojis by themselves do not give you great odds of success, but when combined with good money management and some other filters they can be very powerful, far better than most indicators anyway :) Good article

khalidamassi avatar are right but in monthly + weekly give us clear indication ... i will show more examples soon

khalidamassi avatar

SpecialFX... thank you ... you are right ... one of the most values indicators

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A pharmacy has hundreds of different drugs to sell, but when a patient enters a pharmacy he will only go for the medicine prescribed to him. Trading Forex through technical indicators is very similar to this scenario: traders have “a lot” of technical indicators to trade with but only a few can be useful to them. In this article I will categories some technical indicators and try to cover some trading combinations which can be useful for traders who use a mix of indicators for trading. Following are the main categories of technical indicators. 1. Momentum Indicators The most common of all are momentum indicators. They tells us where the price is directed and how strong is the directional movement. However, they are also considered to be lagging indicators as the calculations behind these indicators are based on the recent history and continuation of trend after the indicator always have subjectivity. Moving averages, regression channels, classical divergences are a few momentum indicators. 2. Reversal Indicators The second are reversal indicators. They tells us of a reversal expectation after price has gone in a particular momentum. They are commonly based on the logic of over-b…
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Sintano avatar
Sintano 25 Jan.

Thank you indeed. Actually a big majority of traders have clear ideas of over bought/sold levels but selecting indicators is always a harder task. Will try to come up with a concrete system for the readers in the next month. :)

Likerty avatar
Likerty 25 Jan.

best momentum indicator is M1 TF:)))

Sintano avatar
Sintano 26 Jan.

indeed, when you have a trade opened and see a 5.0 pip movement in your direction after a long wait of static price ;)

alifari avatar
alifari 30 Jan.

nice read - well done

Sintano avatar
Sintano 30 Jan.

thanks. :)

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Hello dear members Dukas community, first of all, I want to wish to everyone, a happy 2013, which this year be full of many pips "blue" for all. This month I return to articles, and once again within the philosophy of negotiating with simplicity. I bring you another strategy that already use a few years ago, call it FiboDec_System. For this strategy, we will use graphs 1 hour time frame. The analysis should be performed between 18 and 23:00 GMT, and my experience tells me that analyzes at 18:00 may translate into better results, however later analysis also show very interesting perform. This system should be divided into a few distinct stages, namely: 1) Determination of maximum and minimum of the last 24 hours 2) Application of Fibonacci_Dec (Fibonacci custom which is divided into tenths) 3) Determination of scenario / predominant trend 4) Definition of possible scenarios Having said this, I try to describe each of these steps so in summary form, to anyone of you could try this system. MAX vs. MIN The first thing to do is determine the maximum and minimum which occurred in the last 24 hours or since the last review. We'll need these values ​​when we make the application of our Fib…
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Likerty avatar
Likerty 25 Jan.

I like this approach but I would add common mathematical proportions - 25 %, 75, 125, 175 etc..

Sintano avatar
Sintano 26 Jan.

If you so much like mathematical proportions, I would recommend you to work over Murray Math SR levels. These are a must in my personal trading system.

Bluedragon avatar
Bluedragon 29 Jan.

Sintano i know it and a like very much ;). Thanks for suggest

Bluedragon avatar
Bluedragon 29 Jan.

Likerty if you see, the targets in this strategy is not so far of your suggest values ;) I think that is important test all scenarios, because everyone is right ;)

SpecialFX avatar
SpecialFX 30 Jan.

Another good strategy, thanks for sharing! :) Will this one be automated as well sometime in the future?

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In my last article - Do you know the trend ? - i talked about the famous words "The trend is your friend" and why we see this words everywhere. In there, i talked about determining the trend using trend lines. But there are several ways to determine if we are in presence of one trend or not and with trend lines we can get easily false breakouts (price crossing the trend line). We can see that in image 2 taking as reference the pink line there. With this breakouts we may think about trend change but don't is what happens.  In this article i'm talking about using a indicator (well, to be correct, same indicator three times) to help us in trend determination. The indicator we are going to use is the SMA - Simple Moving Average. What is SMA ?SMA refers to "Simple Moving Average" and is one of the simplest "Moving Averages". "Moving averages" are one way to "smooth" the price action (price flow) along the time. This "Moving averages" can be of two major types: Simple and Exponential. In "Simple Moving Average" - SMA - we use the price as is  without modifications for a determined number of periods (can be one of  Open price, Low price, Higher price or Close price of each period). On Exp…
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belman avatar
belman 15 Apr.

good luck to you, please look at to me in the strategy contest

belman avatar
belman 15 Apr.


4xkishore avatar
4xkishore 20 Apr.

SMAs are lagging indicators. Anybody will find the crossovers for entry signal only when "the train has already been missed"... It involves high risk with considerable returns. I would suggest you to "google" XLT TRADING, VOLUME SPREAD ANALYSIS, THE SECRET CODE OF JAPANESE CANDLESTICKS by Felipe Tudela. I am sure after reading these e-books your trading will go much nearer to the expert level traders and you will almost forget using MA Crossovers. Please do not take my words negatively. All of starts small..but one should always find great opportunities which are available free of cost.

jlongo avatar
jlongo 20 Apr.

@4xkishore: I don't use MA on crossover neither talk about that in article... I'm novice but i came to that conclusion sometime ago if you use great values for MA. I alert for lagging in the article. In my hubble opinion it is good for trend confirmation, trend retracements (in some extent) and trend following. Thankyou for your alert words. Trade well and good luck.

DEMO2ibHhM avatar
DEMO2ibHhM 25 Apr.

ery good ideas..
have happy month of you ..good luck

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traders!!! This is my first article, hope you enjoy it and find it
in May 2011, i learn good technique to trade HS's using
AB=CB reversal pattern to calculate the targets, and potential spot a
new reversal. This type of reversal pattern (HD's) followed for other
reversal pattern (AB=CD) can be found in all the time frames, and can
help you to spot long term trend and intra day trends
as well.
keep in mind, one off the
most important aspect to trade reversal patterns it's to closely observe the
price action in the potential reversal zone,
in fact this aspect it's critical!! You
MUST have the discipline to wait for the price arrives
to the reversal zone, and start to gives you the sign for the
reversal. First i will explain how i
trade HS's using
AB=CD reversal pattern to find the targets and potential new trend
reversal and later i will show you the example in the Cable.
How to spot and trade HS's –
This is can be used in all time frames, this example it's in up trend
Price it's trending (making
higher highs and higher lows)
Price makes new high, but
fails to make new low, breaking the up trend line and retracing till the
last support (establishing…
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LinnuxFX avatar
LinnuxFX 3 Jan.

Well written and nice pattern explanation, great article, good luck...

Bideira avatar
Bideira 4 Jan.

Thank you for the comments!!!

alifari avatar
alifari 4 Jan.

nice article with good visual charts

hilon_capital avatar

Great article. Good luck in both contests.

doctortyby avatar

Interesting Introduction to Head & Shoulders pattern and ABCD. I also use them in as Trading Instruments in my Analysis. Do You use Constant Range Bars Charts (Volatility charts, based only on price movement, eliminating the Time factor)?... They are available in J-forx Platform. Read my introduction to Range Bars Charts and my weekly analisys model. Range Bars give you an edge ;) +1

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                                  Figures reversalThe term "rollover figures" is widely used but poorly understood in general, and requires some clarification. Indeed, many players think that this means that downward trend will "return" in an uptrend after a news or a technical signal.The reality is that instead of such an event will often temporarily halt the current trend and create a zone of indecision which has three possible outcomes:the current trend will resumethe trend is reverseduncertainty will continue and result in a trading rangeThis applies to current events, for the Western technical analysis (double tops, double hollow shoulder-head-shoulder ...) and the Japanese candlestick analysis.Despite this, the study of figures turning is essential because often it is trading at the end of these that will be taken positions. There are gray areas in no apparent order are difficult to classify and therefore not easily studied and used but also figures that recur regularly and whose probabilities of success are interesting enough to give rise to equity positions. The best known are the hammer, the hanged man, the downstream and the various stars.An important point to grasp is th…
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ritesh avatar
ritesh 10 Dec.

Nice article, a must read I'd say. keep more coming +1

doctortyby avatar
doctortyby 18 Dec.

again good article to begin with, good luck in the contest +!

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You will often hear the maxim "Don't be married to your positions". In simple terms, sometimes you are going to choose the wrong direction. That doesn't mean that you have to be unprofitable. What it means is that you have to be willing to admit you are wrong!My trading in the competition for the first 4 days has been an example of just such trading. I have been of the opinion that the EURUSD was going to fall to the 1.3150 area. It hasn't, yet, but I haven't been unprofitable either.  Take a look at my trading log here.You will see several posts where I state that I am looking for the pair to fall. However, you will also notice that on several occasions I question the tenor of a trade and the direction I need to trade. In the following chart you can see the last two trades I took. Even though I am trying to ride the price action lower, I was willing to accept that I may be wrong in the short term. The long term doesn't matter, because many things change in the long term, and I may change where I think the pair is headed. There is no magic formula, but a willingness to accept that you may be wrong is a healthy thing to have. I use the following plan to move my positions along as pr…
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rob_deniro avatar
rob_deniro 10 Dec.

Hi ikhall, thanks for the reply. Will ask some more questions, I have plenty and not many ppl to talk to about FX at all. Have a nice wkend.

ritesh avatar
ritesh 10 Dec.

Nice article, a must read I'd say. keep more coming +1

ikhall avatar
ikhall 11 Dec.

Thanks ritesh. I have enjoyed your articles as well. Seems to me they are getting better every week.

skytrader avatar
skytrader 18 Dec.

another megalike... this is the real art in trading! this is exactly the point! defending your money and also winning in situations when you are supposed to lose! i can also recommend to always have a look at different time frames and scale it down to the time frame one wants to trad ein the end. never trade against a major trend! at least when oyu are swinging. your articles show a solid fundament of knowledge. your trading looks also good. enjoy your trading in the next years! just keep control over your losses and you will succeed!

mielec avatar
mielec 19 Dec.

This is very informative art. Just like should be.there are many useful articles like this one.
All what you need to follow the rules

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Charting has become a widely used science. Much of it seems overengineered and some follow it in a religious style. So it's critical to know what is important and what not. One of my favourite signals is this one here: The market is bullish and running up the hill. But the last candle with its very high top and lower close is showing you that the market has no more power. During the candle it was still strong but then towards the end of the candles time period the market got weak. A very good sign for the end of the trend.Same on the way down: The market fell for quite a few candles but at the end it snapped back up. The last candle has a very long leg and closed up. This shows you that the market wanted to go back up and wasn't being sold anymore during the candle.Watch out for long candle necks or candle legs. It's a great sign for reversals.I like it best in the 15min candle and trade the reversal in direction of the longer trend (1hour, 4 hour, daily). Add a tight stop loss and let the profits run.Give a look at the complete picture:- a candle with a very long neck- showing that the uptrend might run out of power- "indecisive" candles after the long neck candle- a turning MACD …
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gorozcoh avatar
gorozcoh 23 Nov.

Good luck. visit me

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