Elementary

Elementary

  • Lesson 1: Support and Resistance
    Lesson 1: Support and Resistance

    “Support and resistance” is one of the most widely used concepts in forex trading. Strangely enough, everyone seems to have their own idea of how you should measure support and resistance. Let’s take a look at the basics first.

  • Lesson 2: Trend Lines
    Lesson 2: Trend Lines

    Trend lines are probably the most common form of technical analysis in forex trading. They are probably one of the most underutilized ones as well. If drawn correctly, they can be as accurate as any other method. Unfortunately, most forex traders don’t draw them correctly or try to make the line fit the market instead of the other way around.

  • Lesson 3: Trend Channels
    Lesson 3: Trend Channels

    If we take this trend line theory one step further and draw a parallel line at the same angle of the uptrend or downtrend, we will have created a channel. No, we’re not talking about ESPN, National Geographic Channel, or Cartoon Network. These channels aren’t television channels, they’re trend channels, sometimes also called price channels.

  • Lesson 4: How to Trade Support and Resistance
    Lesson 4: How to Trade Support and Resistance

    Now that you know the basics, it’s time to apply these basic but extremely useful technical tools in your trading. Because here at dnbcmarkets.com we want to make things easy to understand, we have divided how to trade support and resistance levels into two simple ideas: the Bounce and the Break.

  • Lesson 5: Summary: Trading Support and Resistance
    Lesson 5: Summary: Trading Support and Resistance

    In the previous lessons, you learned about trading support and resistance. Let’s review what you’ve learned. When the price moves up and then pulls back, the highest point reached before it pulls back is now resistance. As the price continues up again, the lowest point reached before it climbs back up is now support.

  • Lesson 6: What is a Japanese Candlestick?
    Lesson 6: What is a Japanese Candlestick?

    While we briefly covered Japanese candlestick charting analysis in the previous forex lesson, we’ll now dig in a little and discuss them more in detail. Let’s do a quick review first.

  • Lesson 7 :Japanese Candlestick Anatomy
    Lesson 7 :Japanese Candlestick Anatomy

    Just like humans, candlesticks have different body sizes. And when it comes to forex trading, there’s nothing naughtier than checking out the bodies of candlesticks! Long bodies indicate strong buying or selling. The longer the body is, the more intense the buying or selling pressure. This means that either buyers or sellers were stronger and took control.

  • Lesson 8:Basic Japanese Candlestick Patterns
    Lesson 8:Basic Japanese Candlestick Patterns

    What do spinning tops, marubozus, and dojis have in common? They’re all the basic types of Japanese candlesticks! Let’s take a look at each type of candlestick and what they mean in terms of price action.

  • Lesson 9: Single Candlestick Patterns
    Lesson 9: Single Candlestick Patterns

    Now that you’re familiar with basic candlestick patterns like spinning tops, marubozus, and dojis, let’s learn how to recognize single candlestick patterns. When these types of candlesticks appear on a chart, they can signal potential market reversals. Here are the four basic single Japanese candlestick patterns

  • Lesson 10: Dual Candlestick Patterns
    Lesson 10: Dual Candlestick Patterns

    What’s better than single candlestick patterns? DUAL candlestick patterns! To identify dual Japanese candlestick patterns, you need to look for specific formations that consist of TWO candlesticks in total.

  • Lesson 11: Triple Candlestick Patterns
    Lesson 11: Triple Candlestick Patterns

    To identify triple Japanese candlestick patterns, you need to look for specific formations that consist of three candlesticks in total. These candlestick formations help traders determine how the price is likely to behave next. Some three candlestick patterns are reversal patterns, which signal the end of the current trend and the start of a new trend in the opposite direction.

  • Lesson 12:Japanese Candlestick Cheat Sheet
    Lesson 12:Japanese Candlestick Cheat Sheet

    Did you click here first? If you did, stop reading right now and go through the entire Japanese Candlesticks Lesson first! If you’re REALLY done with those, here’s a quick one-page reference cheat sheet for single, dual, and triple Japanese candlestick formations. This cheat sheet will help you to easily identify what kind of candlestick pattern you are looking at whenever you are trading. Go ahead and bookmark this page… No need to be shy!

  • Lesson 13: Candlesticks with Support and Resistance
    Lesson 13: Candlesticks with Support and Resistance

    In this section, we will be looking at these basic candlestick patterns that we have learned in the previous sections to make sound trading decisions. Remember, candlesticks are useless on their own, and you must always consider market environment and what price is telling you. But before we begin, just a few words of caution… As with any technical indicator or tool, if candlesticks point to a reversal or continuation that does NOT mean it will happen.

  • Lesson 14: Common Mistakes That New Traders Make With Japanese Candlesticks
    Lesson 14: Common Mistakes That New Traders Make With Japanese Candlesticks

    A lot of the time, markets are “noisy.” Not every candlestick useful when thinking about future price movements. Instead of looking at every candlestick, focus on the ones where the price is currently trading near important support and resistance levels. So first identify where you think these levels are, and then start looking out for candlestick patterns.

  • Lesson 15: Summary: Japanese Candlesticks
    Lesson 15: Summary: Japanese Candlesticks

    We’ve covered a lot about Japanese candlesticks. Hopefully, you’re not at wick’s end but are actually now fired up about candlestick charts. Maybe we’ve even ignited a flame that becomes a lifelong passion for Japanese candlesticks.

  • Lesson 16 : Fibonacci Trading
    Lesson 16 : Fibonacci Trading

    We will be using Fibonacci ratios a lot in our trading so you better learn it and love it like your mother’s home cooking. Fibonacci is a huge subject and there are many different Fibonacci studies with weird-sounding names but we’re going to stick to two: retracement and extension. Let us first start by introducing you to the Fib man himself…Leonardo Fibonacci.

  • Lesson 17: How to Use Fibonacci Retracements
    Lesson 17: How to Use Fibonacci Retracements

    Let’s talk about Fibonacci retracement levels. Fibonacci retracement levels are horizontal lines that indicate the possible support and resistance levels where price could potentially reverse direction. The first thing you should know about the Fibonacci tool is that it works best when the market is trending. The idea is to go long (or buy) on a retracement at a Fibonacci support level when the market is trending UP.

  • Lesson 18: Fibonacci Retracements are NOT Foolproof
    Lesson 18: Fibonacci Retracements are NOT Foolproof

    Back in Grade 1, we said that support and resistance levels eventually break. Well, seeing as how Fibonacci levels are used to find support and resistance levels, this also applies to Fibonacci! Fibonacci retracements do NOT always work! They are not foolproof.

  • Lesson 19: How to Use Fibonacci Retracement with Support and Resistance
    Lesson 19: How to Use Fibonacci Retracement with Support and Resistance

    Like we said in the previous section, using Fibonacci levels can be very subjective. However, there are ways that you can help tilt the odds in your favor. While the Fibonacci retracement tool is extremely useful, it shouldn’t be used all by its lonesome self. It’s kinda like comparing it to NBA legend Kobe Bryant. Kobe was one of the greatest basketball players of all time, but even he couldn’t win those titles by himself. He needed some backup.

  • Lesson 20: How to Use Fibonacci Retracement with Trend Lines
    Lesson 20: How to Use Fibonacci Retracement with Trend Lines

    Another good tool to combine with the Fibonacci retracement tool is trend line analysis. After all, Fibonacci retracement levels work best when the market is trending, so this makes a lot of sense! Remember that whenever a pair is in a downtrend or uptrend, traders use Fibonacci retracement levels as a way to get in on the trend. So why not look for levels where Fib levels line up right smack with the trend?

  • Lesson 21: How to Use Fibonacci Retracement with Japanese Candlesticks
    Lesson 21: How to Use Fibonacci Retracement with Japanese Candlesticks

    If you’ve been paying attention in class, you’d know by now that you can combine the Fibonacci retracement tool with support and resistance levels and trend lines to create a simple but super awesome trading strategy. But we ain’t done yet! In this lesson, we’re going to teach you how to combine the Fibonacci retracement tool with your knowledge of Japanese candlestick patterns that you learned in Grade 2.

  • Lesson 22: How to Use Fibonacci Extensions to Know When to Take Profit
    Lesson 22: How to Use Fibonacci Extensions to Know When to Take Profit

    The next use of Fibonacci will be using them to find targets. Gotta always keep in mind “Zombieland Rules of Survival #22” – When in doubt, know your way out! Let’s start with an example in an uptrend. In an uptrend, the general idea is to take profits on a long trade at a Fibonacci Price Extension Level. You determine the Fibonacci extension levels by using three mouse clicks.

  • Lesson 23: How to Use Fibonacci to Place Your Stop so You Lose Less Money
    Lesson 23: How to Use Fibonacci to Place Your Stop so You Lose Less Money

    Probably just as important as knowing where to enter or take off profits is knowing where to place your stop loss. You can’t just enter a trade based on Fib levels without having a clue where to exit. Your account will just go up in flames and you will forever blame Fibonacci, cursing his name in Italian.

  • Lesson 24: Summary: Fibonacci Trading
    Lesson 24: Summary: Fibonacci Trading

    Let’s review what we’ve learned about trading Fibonacci. The key Fibonacci retracement levels to keep an eye on are: 23.6%, 38.2%, 50.0%, 61.8%, and 76.4%. The levels that seem to hold the most weight are the 38.2%, 50.0%, and 61.8% levels, which are normally set as the default settings of most forex charting software.

  • Lesson 25: What Are Moving Averages?
    Lesson 25: What Are Moving Averages?

    Moving averages are one most commonly used technical indicators. A moving average is simply a way to smooth out price fluctuations to help you distinguish between typical market “noise” and the actual trend direction. By “moving average”, we mean that you are taking the average closing price of a currency pair for the last ‘X’ number of periods.

  • Lesson 26: Simple Moving Average (SMA) Explained
    Lesson 26: Simple Moving Average (SMA) Explained

    A simple moving average (SMA) is the simplest type of moving average. Basically, a simple moving average is calculated by adding up the last “X” period’s closing prices and then dividing that number by X. Confused??? Don’t worry, we’ll make it crystal clear.

  • Lesson 27: Exponential Moving Average (EMA) Explained
    Lesson 27: Exponential Moving Average (EMA) Explained

    As we said in the previous lesson, simple moving averages can be distorted by spikes. We’ll start with an example. Let’s say we plot a 5-period SMA on the daily chart of EUR/USD. The closing prices for the last 5 days are as follows: Day 1: 1.3172 Day 2: 1.3231 Day 3: 1.3164

  • Lesson 28: Simple vs. Exponential Moving Averages
    Lesson 28: Simple vs. Exponential Moving Averages

    By now, you’re probably asking yourself, which is better? The simple or the exponential moving average? First, let’s start with the exponential moving average. When you want a moving average that will respond to the price action rather quickly, then a short period EMA is the best way to go. These can help you catch trends very early (more on this later), which will result in higher profit. In fact, the earlier you catch a trend, the longer you can ride it and rake in those profits (boo yeah!).

  • Lesson 29: How to Use Moving Averages to Find the Trend
    Lesson 29: How to Use Moving Averages to Find the Trend

    One sweet way to use moving averages is to help you determine the trend. The simplest way is to just plot a single moving average on the chart. When price action tends to stay above the moving average, it signals that price is in a general UPTREND. If price action tends to stay below the moving average, then it indicates that it is in a DOWNTREND.

  • Lesson 30: How to Use Moving Average Crossovers to Enter Trades
    Lesson 30: How to Use Moving Average Crossovers to Enter Trades

    By now, you know how to determine the trend by plotting on some moving averages on your charts. You should also know that moving averages can help you determine when a trend is about to end and reverse. As trend traders, you want to recognize and ride the trend for as long as possible. You have to know when to get in AND when to get out.

  • Lesson 31: How to Use Moving Averages as Dynamic Support and Resistance Levels
  • Lesson 32: How to Use Moving Average Envelopes
    Lesson 32: How to Use Moving Average Envelopes

    What are moving average envelopes? Let’s rewind and briefly talk about moving averages first. The goal of using moving averages is to identify trend changes. While moving averages are a useful tool to have in your technical analysis toolbox, they can be susceptible to providing false signals.

  • Lesson 33: How to Analyze Trends With Moving Average Ribbons
  • Lesson 34: How to Trend Trade with Guppy Multiple Moving Average (GMMA)
    Lesson 34: How to Trend Trade with Guppy Multiple Moving Average (GMMA)

    The Guppy Multiple Moving Average (GMMA) indicator provides an interesting approach using moving average ribbons. As a trend trader, it’s not enough to just identify the direction of a trend and catch the trend. Trend trading success depends not only properly identifying the trend direction and catching the trend after it has started, but also on getting out as soon as possible after the trend has reversed.

  • Lesson 35: Summary: Using Moving Averages
    Lesson 35: Summary: Using Moving Averages

    There are many types of moving averages. The two most common types are a simple moving average and an exponential moving average. Simple moving averages are the simplest form of moving averages, but they are susceptible to spikes. Exponential moving averages put more weight to recent price, which means they place more emphasis on what traders are doing now. It is much more important to know what traders are doing now than to see what they did last week or last month.

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