Heikin Ashi? You’re probably familiar with the three popular chart types: line chart, bar chart, and the candlestick chart.
How is Heikin Ashi different from a typical candlestick? Let’s learn the difference between a Heikin Ashi candlestick versus a traditional Japanese candlestick chart.
How do you calculate Heikin Ashi? Let’s learn how Heikin Ashi candlesticks are calculated and plotted on a chart.
How do you use Heikin Ashi? Now that you’ve learned how to calculate Heikin Ashi candlesticks, let’s discuss how to use and read a Heikin Ashi candlestick chart.
How do you trade Heikin Ashi? As mentioned in a previous lesson, using a Heikin Ashi chart makes trends easier to identify.
What are the limitations of Heikin Ashi? Unfortunately, Heikin Ashi is not the holy grail.
Heikin Ashi is a type of price chart that consists of candlesticks. Modified Japanese candlesticks.
Back in the old school days of the 1920-30s, there was this mad genius and professional accountant named Ralph Nelson Elliott.
Mr. Elliott showed that a trending market moves in what he calls a 5-3 wave pattern.
The 5-wave trends are then corrected and reversed by 3-wave countertrends. Letters are used instead of numbers to track the correction.
Like we mentioned earlier, Elliott waves are fractals. Each wave is made of sub-waves. Huh?
As you may have guessed, the key to using the Elliott Wave Theory in trading is all about being able to correctly identify waves.
This is probably what you all have been waiting for – drumroll please – using the Elliott Wave Theory in forex trading!
Here’s a summary of what we covered regarding the Elliott Wave Theory
Now that you’ve got the basic chart patterns down, it’s time to move on and add some more advanced tools to your forex trading arsenal.
The ABCD Let’s start this lesson with the simplest harmonic pattern. So what could be more basic than the good old ABC’s?
Once upon a time, there was this insanely smart trader dude named Harold McKinley Gartley. He had a stock market advisory service in the mid-1930s with a huge following.
As you may have guessed, profiting off Harmonic Price Patterns is all about being able to spot those “perfect” patterns and buying or selling on their completion.
Harmonic price patterns enable us to distinguish possible areas for a continuation of the overall trend.
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