Bollinger Bands Bollinger Bands, a technical indicator developed by John Bollinger are used to measure a market’s volatility and identify “overbought” or “oversold” conditions. Basically, this little tool tells trader whether the market is quiet or whether the market is LOUD! When the market is quiet, the bands contract and when the market is LOUD, the bands

In order to study how the price of a currency pair moves, it would be better to have some sort of way to look at its historical and current price behavior. A chart, or more specifically, a price chart, happens to be the first tool that every trader using technical analysis needs to learn. A chart is simply a visual representation of

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

There are three types of market analysis: Technical Analysis Fundamental Analysis Sentiment Analysis There has always been a constant debate as to which analysis is better, but in fact, all of them need to be known. It’s kind of like standing on a three-legged stool. What is Technical Analysis? Technical analysis is the framework in which traders study

What is Support and Resistance? “Support and resistance” is one of the most widely used concepts in trading. Strangely enough, everyone seems to have their own idea of how to measure support and resistance. Let’s take a look at the basics first. Look at the diagram above. This zigzag pattern is making its way up (a “bull market”).When

Fibonacci ratios – will be using a lot in trading. Fibonacci Sequence A Fibonacci sequence is formed by taking 2 numbers, any 2 numbers, and adding them together to form a third number. Then the second and third numbers are added again to form the fourth number. The ratio of the last number over the second-to-the-last number

Japanese Candlestick Trading Back in the day when Godzilla was still a cute little lizard, the Japanese created their own old school version of technical analysis to trade rice. That’s right, rice. Traders be hustin’ back then also. To rock ice, trader traded rice. A Westerner by the name of Steve Nison “discovered” this secret technique called “Japanese