Added by Coach Wayne
3 weeks ago
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Oscillators are a representation of data that tells us overbought or oversold conditions of the market. Stochastics and MACD are examples. These can be used as leading indicators. Oscillators are complimentary when trading off of support or resistance.
The following chart shows how stochastics can help us to determine where to sell. In the case of the blue arrow, notice there is a stochastics cross while price is in the Overbought zone. Note 3 candles later there is a lower high which is about a 61.8% fib as well, giving a conservative trade set up. These must be used in context of the trend, so the trader is selling when conditions are overbought in downward market.
Added by Coach Wayne
3 weeks ago
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Fibonacci is a tool that the trader can use which is truly a leading indicator. This tool is truly helpful in a trending market of higher highs and higher lows or, lower lows and lower highs. One must be careful no...
Added by Coach Wayne
3 weeks ago
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Moving Averages are indicators that help give traders information, and help establish bias. Moving averages are not predict the future, however do tell a story of the past, that can be used in assisting traders to decipher what may happen in the near future.
Moving averages used to help establish our market bias and are Medium term Averages (21 and 55 EMA's). These averages help us establish the the sentiment of the market. In the context of a 15 minute chart, when looking at the 21 and 55 EMA's, they are letting us know, what is happening in the market; and which direction the market is in over the past day or few sessions. The wider and steeper the angle and separation between the two averages, the more clear the story and useful the averages.
Added by Coach Wayne
3 weeks ago
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Support and Resistance are terms used by technical traders which refers to levels where price movement may hesitate before its eventual continuation at the very least. More likely however, these areas are ones that will serve as a turning point; where price will go from down to up, or up to down. Traders who wish to buy a currency pair will seek to do so at support levels, and trader who seek to sell a given currency pair will do so at resistance levels.
