Technical Analysis

Day Trading with Pivot Points

The pivot point for the day is calculated by taking the prior day’s (High + Low + Close) / 3. These are commonly used by floor traders in the trading pits to identify key support and resistance levels. If the market opens above the daily pivot, look for short entries for a move down to test the pivot and vice versa. If the pivot isn’t tested in the morning session, then look for it to test in the afternoon. Daily…

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What is Technical Analysis?

Have you ever wondered why technical analysis works? Technical analysis is the study of chart patterns and technical indicators used to develop entry and exit points for placing trades. Here is a great online free resource, a course in technical analysis. The basis for most technical analysis is candlestick charting 101, and Steve Nison’s book Japanese Candlestick Charting Techniques, is the go to book for learning these methods. Aside from the self fulfilling prophecy, often times price moves in the…

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The Doji Candlestick

The doji is a candlestick formation that can be seen on any time frame, but the larger the time frame which forms the doji, the greater the significance. This candlestick pattern represents an even balance between buyers and sellers at the close of the doji candle. The Doji Itself There are really two important factors to look at with the doji candlestick formation, the first being the doji itself. Whether or not the candle closes just slightly positive, slightly negative,…

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Candlestick 101

One of the most important parts of technical analysis is candlestick 101. The candlestick charting method was brought to the United States by a man names Steve Nison. Nison is known as the founding father to candlestick 101 in the western part of the world. His book, Japanese Candlestick Charting Techniques includes everything from the basics, such as constructing the candlesticks and learning the patterns, to advanced topics, such as the rules of multiple technical techniques. These candlestick charting methods…

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