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6/40
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Forex indicators are mathematical functions based on the evaluation of the difference between bidding and price. While analyzing charts, a trader can predict whether a current trend will be the same or change somehow and thus create his own most profitable trading strategy. By using divergence indicators, traders may effectively reveal higher and lower momentum, and therefore the possible trend continuation or reversal. Effectively using the forex divergence trading system may be one of the best tools to forecast the situation and to achieve the best trading results.
CONTENTS
1. What is divergence
2.Types of divergence
3. Indicators to use for Divergence Trading
4. Rules for Determining Divergence
5.Divergence Trading – Some important points
6.conclusion
1.WHAT IS DIVERGENCE
It is an age-old concept that was developed by Charles Dow and mentioned in his Dow Tenets. The most important of all is when Dow found out that when there was a divergence between the two, it presented a possible change in the markets. For example, when the Dow Industrials made new highs and when the transportation index failed to make a high it indicated that there was some discrepancy. This formed the basis …
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fx211pips avatar
fx211pips 19 July

great article, divergence is a powerful tool

tangell avatar
tangell 20 July

nice job/ good luck

chytry_dziad avatar

Good article!

samymahrous avatar

well done

Leonko avatar
Leonko 14 Aug.

It's very informative to me, thanks for job

orto leave comments
7/26
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Introduction

Identifying patterns in forex trading, forex binary options trading or touch binaries can be a game changer, resulting in huge success. Pullbacks and throwbacks are one of the man patterns that traders could make use of, especially in binary options trading.
This article discusses the definition of pullbacks and throwbacks, their differences, how to spot them and some practical information for a binary options trade.
What is pullback and throwback?

In general terms we can define the terms pullback and throwback as the return of the price to the predefined line of support or resistance, which was already broken, following which there is a classic example of support and resistance role switch.
  • Pullback
In a pullback the price breaks the line of support from the top, for a short moment, returns back and transforms support into resistance from which it reverses. A pullback is also referred to a as retracement or a consolidation. Graphically it can be represented by Fig 1 Below.
Fig 1: Pullback illustration
  • Throwback
A throwback is the opposite of a pullback. It occurs when the price breaks the line of resistance from the bottom, return and creates support from th…
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Napoli avatar
Napoli 26 June

test

AAAnya avatar
AAAnya 27 June

Cool!

bhavinvanza avatar

nice

rajwinder avatar
rajwinder 29 June

Good information

anvifx avatar
anvifx 10 July

good article!!

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11/26
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Hello traders, I would like to take some time and give you something that is very good in forex trading and the important of it would be counted as best in Forex Marketing.Most of us (forex traders) understand the meaning of these terminologies because we use them everyday in trading but we may not be aware their values and the actual meaning in real forex market and I will take the short time to explain to you.What is pips?The term '"pips" is an acronym for "percentage in point," although it's sometimes also called a price interest point. If that leaves you scratching your head, here's a better explanation that's a little less technical. Pips represent the smallest movement that a currency pair can make. This is typically equal to 1 basis point, but not always.
About Forex Trading You can't understand pips until you understand Forex trading."Forex" is shorthand for the foreign exchange market. Currencies must be exchanged to facilitate international trade and business, and this is the place where it happens. When someone in the U.S. wants to purchase something in Tokyo, his dollars must be converted to yen before that can happen. Forex is said to be the most liquid market in the…
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FXRabbit avatar
FXRabbit 25 June

Good article!

anvifx avatar
anvifx 27 June

good job !!

Yonggi7 avatar
Yonggi7 28 June

Yes ! It's very important to remind the basic principles in Forex action !

chytry_dziad avatar

Great job!

Slava_Z avatar
Slava_Z 29 June

Хорошая статья!

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20/31
Ranking
My understanding on fundamental analysis is that a review on real economic activities or events which are affecting foreign currencies exchange strong or weakness that is refleceted in the forex spot market. Some factors that affects a country currecy exchange rate in corresponding to forex fundamental analysis comprises of country inflation, interest rate, current account, public debt, terms of trade, political stability, economic growth, and so on. Meanwhile, forex technical analysis is basically a review on the currency market movement up and down on chart tool based as a utility to identify market direction, level, and momentum. Perfectly, we should look at both analysis together so that we can grab all aspects of the market in one basket. The advantage of the fundamental analysis will give us the market’s insights of current economic information and technical analysis will give us clues to the probability movement based on chart historical data. While we are trading by using charts as tool then technical analysis knowledge and skill will much help us for example to find the best momentum, entry location, exit target, and determine position size.
To make it easier to understan…
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skyisthelimit avatar

Useful information to use in FA and trading.

Yonggi7 avatar
Yonggi7 3 Apr.

It's very important for those who want to trade in events ! Congratulations !

Sebine avatar
Sebine 3 Apr.

Good job;)

Aaamira avatar
Aaamira 8 Apr.

good article!

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5/65
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Some people from community were interesting in my trading method. I still think that it is early for now. I need to improve it. I have many trades with small gains but my losses are big in general. Need to improve gains and degrees lose.
But I think I can share my technical analyze method. Some of you probably heard about trend breakouts. I like that analyze but it does not work all the time. I practicing with technical indicators I found that by using RSI and Volume indicators we can easily identify fake breakouts.
In this article I want to share my RSI + Volume breakout analyzing method.
What is trend breakout?
Trend breakout: We all know that price moves in trends: uptrend, downtrend or side trend. Trend breakout theory says that when price breaks trend it most likely will continue in that direction. Traders following this method will experience that price can move back and create another trend. I am interested in sloping trends.
From chart above we can see that price was moving in uptrend, then it break it and dropped bellow and continued falling by forming downtrend and after it broke it and formed uptrend again. Trend breakout worked well.
But as I wrote before it does n…
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olya2517 avatar

thank you, very nice

AnnaZhurina avatar

Отличная статья !

Avnish26 avatar
Avnish26 21 May

nice article

SergeyR avatar
SergeyR 9 June

неплохая статья

samoo avatar
samoo 26 June

مقاله روعه

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13/68
Ranking
Many of you perhaps vote for the survey of Dukascopy:
What asset class would you invest in for 1 year + term?

From curiosity I have looked at the result and I was a bit surprised, because nowadays a really bearish Gold was the leading class. This result showed me perfectly, that traders believe in Gold, better than anything else.
After this I had a deeper look at the current situation in Gold’s market and I would like to share my experiences with you.
Fundamental Analysis

Although many articles were written about both the Brexit-vote and the US-election, just a few could predict the final results, which fact confused the Forex-market and many instruments, for instance XAU/USD, showed strange behaviour.
In both cases the reaction was strong, but the latter one was a bear-sign, too. Since then the rate is descending (mainly because of the strong USD).
The following snapshot shows XAU/USD Daily Graph:
In the picture we can see the difference between the current and the Brexit-price, and – according to many forecasts – it is complacent optimism.
In December Janet Yellen and the Fed have increased the interest rate (as the forecasts said), and this move made the USD stronger, but t…
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sonjatrader avatar

Nice article!! Happy New Year

Amaya avatar
Amaya 9 Jan.

Отличная статья!

Beto avatar
Beto 11 Jan.

Gold seems to be up and will try to manage to achieve the 38% of Fibonacci level.
After that no very knows!!! That is my opinion.
I prefer do not get involved with this security, the spread is too high.

brilliant avatar
brilliant 25 Jan.

nice article .very good

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24/65
Ranking
In this topic we will talk about the expected movement for the pair EURUSD , Based on fundamental analysis and technical,
Fundamental analysis:
Next week (November 14 to November 18) we have several important news,
we must focus on jobs news and CPI, Because the Fed will focus on the decision to raise interest rates
If released in a positive way We must think about selling the euro In the medium term and vice.
Other news will be a short-term impact
About interest rates, in my view it will be Hike in December
Technical analysis:
We will use the waveform analysis in the analysis,
In the weekly time frame, price is in sideways direction And it did not come out yet, The chart shows us the model triangle.
If the price level exceeding trend line and Shut down the level of 1.0800 , We made sure from the beginning of the downward trend.
In the daily time frame , we have in the chart sideways direction but Inclined for landing,
So we say that the trend has become bearish we need Close down the level of 1.0840 to start selling
but if the price close above trend line the trend is become bullish so we can start buying
Core Retail Sales (MoM) (Oct)
Core Retail Sales (MoM) (Oct)

Core Retail Sales (MoM) (Oct)
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TInna avatar
TInna 1 Dec.

very well!

Starsailor avatar

+1

chytry_dziad avatar

good article!

mermaid avatar
mermaid 9 Dec.

Спасибо за обширную информацию.

tdbatinkov avatar
tdbatinkov 22 Feb.

well done

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9/58
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Introduction
In continuation of previous article, I will now go further in my self-analysis to understand what is the reason of the difference in what I should be doing, and what I am sometimes actually doing. This article has to be read as I would be writing to my self, so the "you" in this case is me myself.
Indicators
As I already explained, when I started trading there was a completely naked chart with the possibility to draw some stuff like for example fibo retracements and drawings. What I need is to understand if and where I have more probabilities for a rise, or for a down move, based on recent price data.
At a certain point in history, someone decided that indicators are useful when deciding an entry. I remember that I was pretty sure people where wrong about this indeed, indicators were useful if used with certain algorithms in order to have a quicker and simpler way to read market moves. Who of you ever coded any automated strategy knows perfectly what I mean. I will explain it better with an example: I want to trade an instru…
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Sharpshooter avatar

Мне понравилось.

Sharpshooter avatar

Спасибо.

SikmaN avatar
SikmaN 30 Sep.

Хорошая работа!

miriam1313 avatar

thank you!

miriam1313 avatar

very interesant!

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23/52
Ranking
This article looks at what's happening from technical perspective only and my expectations for major forex pairs: USD/JPY, EUR/USD and GBP/USD for the near term.
View on USD/JPY :
From the above weekly chart, the start of the second week of Feb 2016 was the first time price broke below range formed in 2015. Thereafter, trend has been bearish until now with price making lower highs and lows.
From the above monthly chart, we can see price making further down move away from 61.8% Fibonacci level.
Current market sentiment sees more favoring JPY than USD.
My current expectation is that price would target the next lower Fibonacci level of 50%.
My view on EUR/USD :
From the below weekly chart, i'm seeing price nearing upper resistance level of the range formed since start of Feb 2015.
Looking at monthly chart (below) though sees that the month of June has been bullish for the pair with price moving towards previous higher high.
Current market sentiment sees a mixed reading from both 2 charts.
I expect price to remain within the range for Q2.
My view of GBP/USD:
The above weekly chart sees current candle heading higher above previous bottom of the range-box.
From below monthly chart, pric…
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Marenno avatar
Marenno 28 June

Nice one!!!

tdbatinkov avatar
tdbatinkov 28 June

good analysis, well done

FX90 avatar
FX90 28 June

nice analysis

Forex_champion avatar

Nice analysis

hrustiashka avatar

Nice article!

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23/59
Ranking
Review of last week
Last week began with the BOJ meeting minutes which was not volatile for the yen pairs and we got the conclusion that the economy of Japan improving gradualy, however it did not help the yen to be held in relation to other currencies and was the weakest currency in the last week among the majors. In the EU we had weak data particularly in the industrial production and GDP of EU, which was below expectations, while perhaps the only positive point was that Germany had somewhat better than expected inflation and trade balance that far exceeded expectations. Also, the euro was one of the weakest currencies and compared to usd fell and broke through some key supports.
On Thursday we had the BoE, pound was very choppy but after expectations of lower inflation and moderate dovish stance of Carney continued to decline. Rise of oil prices in the last week did not help commodity currencies and they were all in the red compared to usd. Based on the above, we conclude that the US dollar was the strongest currency in the last week after a week of declined from the low this year.
This week we will analyze one of the commodity currency compared to usd which is now in a very st…
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bokafx avatar
bokafx 29 May

Good view on AUD and nice article

Nika_1952 avatar

Good professional look.

Helena_Prekrasnaj avatar

good analysis and almost a sure forecast))

fxsurprise8 avatar

nice

Govagent avatar
Govagent 1 June

Good article ^_^

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12/51
Ranking
Introducción
Todos los días aparecen oportunidades en el mercado de divisas, curiosamente la oportunidades aparecen a toro pasado, son oportunidades desaprovechadas, esto genera frustración y provoca precipitación en la siguiente decisión. La consistencia se basa en la capacidad de caer en la cuenta todo el tiempo cuando las probabilidades están a favor y cuando hay que estar fuera del mercado, con la serie de artículos "Idea de Trading semanal", analizare el mejor momento para entrar en el mercado durante la semana minimizando el riesgo.
El Método
Cada semana mediante el análisis técnico estudiare la situación de varios horizontes temporales para tener un visión global sobre la fuerza dominante, estudiaré en primer lugar el horizonte temporal mayor e iré disminuyendo horizontes temporales menores quitando capas como si el mercado fuera una cebolla, me informaré de las noticias macro económicas con un gran impacto en la volatilidad y por ultimo concluiré con la oportunidad con más probabilidad de éxito según lo evaluado. El método para determinar el punto de entrada y salida en el mercado será: "La regla del 76,40%" , esta regla la explico en el artículo del 5 de octubre 2015. …
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tdbatinkov avatar

good trading ideas..

williamb avatar
williamb 7 Apr.

buena idea

miriam1313 avatar

gracias por la información!

GammaBurst avatar
GammaBurst 10 Apr.

Great article, useful!

orto leave comments
5/70
Ranking
The Big Shadow Candle Trade
Introduction
In this article I’d like to expond on the big shadow candle trade, which is part of the general price action strategy. Price action trades on candles alone because that is where the action is, hence the name. In price action we do not look at indicators (MACD’s, RSI’s, stochs and the whole lot) as these indicators, in my opinion, can trick you into losing trades.
To put it simply, these indicators lag. I’m interested in what will happen in the next 1 hour and not what happened last hour or yesterday. The price action strategy, which is based on candlesticks, like a magic ball, can show us how the price might, in its highest probability, behave in the near future.
One of the standard price action strategies are the bullish or bearish engulfing candles on any time frame above 5 min. But this engulfing candle strategy can, unfortunately, land you in losing trades. The big shadow candle trade is based on this standard engulfing candle strategy, but it has a few more rules that have to be met, therefore making it much more effective.
I have been using this strategy (amongst others) for some time now with good retu…
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WallStreet6 avatar

very interesting!

Magic_FX avatar
Magic_FX 29 Jan.

good work

fx211pips avatar
fx211pips 29 Jan.

WallStreet6, Magic FX thank you for these comments.

PriceActionTracker avatar

You can use a tracker to get alerted each time a Big Shadow pattern is formed

PriceActionTracker avatar

Price Action Tracker scans in real time all most markets and time frames and alerts you as soon as it found a big Shadow pattern. Saving you a LOT of time and energy :-)

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7/66
Ranking
The difference between an Oracle and a Trader is that the first one don't pay for its mistakes. So I look at an Financial Instrument with the eyes of a trader and along with the main scenario I always have Plan B, or even C.I rarely make forecasts for any instruments especially EUR/USD which one is most famous and most traded, but it is happened something that caught my attention and I want to share it with the members of Dukascopy community.There are a lot of political and economical events that happened recently in EU but as a Technical Analyst I don't care much more about them. As Dow Jones said in his Theory : "Every single factor, information that is likely to have influence on both demandand supply is reflected in the market price. "THE PRESENT SITUATION Let's take a look at EUR/USD weekly chart: (A-B)-It is strong down movement from (1) Resistance Line = 1,4000 to (2) Support Line = 1,0450. It lasts eleven months and distance of 3500 p.(B-C)-Then for several months there is an Upward Correction. The Support Trend Line (3) is more important and have to be watched closely when the Price is nearby .EXPECTED DEVELOPMENT The main event that caught my attention is t…
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Daniil_Stolnikov avatar

На этой неделе все решится

harih avatar
harih 30 Nov.

I wish you good luck in the contest

Mattie avatar
Mattie 30 Nov.

While it is easy to see long term trends in the retrospect, while trading, it is so difficult to pick those tops and bottoms. Good Job out of you!

Natali_Niyazova avatar

well done! keep going! :)

al_dcdemo avatar

Agreed - having a macro bias can be helpful while making decisions on lower timeframes. Nice job!

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