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1. ABSTRACT

Technical Analysis can be defined as the attempt to exploit movements in the prices of a financial asset. These movements in prices often recur or are to some extent predictable, thus allowing us to have an advantage in Forex trading.
One of the main pillars of Technical Analysis is that all information is contained in the price. The integration of new relevant information that comes to the market is mirrored in its price. Traders are helping to price prices properly as they are in possession of new data. In this way the quotation of an asset incorporates all the available information about it.
2. INTRODUCTION

For a correct Technical Analysis we need to analyze the candles and their main patterns.
To interpret the candles, we have to understand how the body of the figure of a candle is formed.
The body of a candle is formed by the difference between the opening price and the closing of an asset in the period that one wants to analyze.
A red candle (bear), means that the closing price was below the opening price. And a green candle (bull), means that the closing pr…
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LinnuxFX avatar
LinnuxFX 28 Apr.

Obrigado, jorgepaula  . Sim estou a pensar abranger mais patterns no futuro.

legslim avatar
legslim 28 Apr.

Good Article :)

fidanvi avatar
fidanvi 28 Apr.

Nice.

albertocorreia avatar

Gostei.

albertocorreia avatar

Gostei

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12/44
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There is a phenomenon commonly known as naked trading; it means making trading decisions from an unflustered chart. It means the absence of any kind of indicator or analysis tool. Here a trader is only watching what price is doing; watching candlestick formations, and deciding the trend from price activity on the charts.
In this type of situation, an accumulation of bullish candles means the market is going up (Bullish market) while several bearish candles represent a downward price action (bearish market).
On the other side of the fence is the ”Indicator-trader”; a trader who trades the market uses indicators as a guide. Most of these traders have very colorful and elaborately designed charts; the idea is that when several indicators support a trading decision it increases the likelihood of success.
With trading using naked charts, indicators are distractions; because of the bias they bring into a trading environment. With naked trading, a trader is watching price action, taking note of resistance and support,
drawing trend lines to catch reversals and trends.
The unique thing about this approach is that it makes a trader very objective. The entire trading chart is open to inter…
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MobNaga avatar
MobNaga 26 May

good

anna_t avatar
anna_t 26 May

very useful!

P3tr4 avatar
P3tr4 11 June

solid

P3tr4 avatar
P3tr4 11 June

nice approach to charting

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13/41
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Shoulder-Head-Shoulder.
SHS.
It is the ultimate figure of charting for theturnaround in the price quote. Which is manifest and determines most of the
time the end of a prolonged trend in price quotes.
They come in two types such as follows:

Shoulder-head-Shoulder (SHS) indicates a bullishtrend change towards a bass player and the Shoulder-head-shoulder -invested
(SHSI) impinges we change the downtrend to start a uptrend. This pattern is where we can see a sequence clearly marked on the volume price quotes to find out like this:
It beginsto form a first shoulder ( S, leftshoulder) with an increase in the volume of money , reaching an extreme in price quotations either resistance or support level , such a volume is higher than the average of the last half negotiations price.
At the time the price volume gradually decaysthus having already completed the first shoulder in price quotes.
Then comesthe head ( H ) which is a secondmoment of great volume in the price , but most of the time there is greater the volume, the volume of the shoulder and created, and for a rise in prices much higher price shoulder , then the price is poor and the volume disappears , like this and this happened …
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Sly_Fox avatar
Sly_Fox 28 Oct.

interesting,good job.... good Luck to you in the future

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