The Forex Pro

This article is taken from the YourTradingEdge magazine (JUL/AUG 2010 issue) The authors is Timothy Morge , who has been a professional trader, author, educator and mentor for more than 39 years. Timothy Morge on how to draw and use median lines, a leading indicator. Median lines, or pitchforks, are one of the few true leading indicators in technical analysis today. They are an offshoot of action and reaction lines, which were developed by Dr Alan Andrews in the mid-1920s. It is said that Dr

In late 1980s John J. Murphy published his book titled “Technical Analysis of the Futures Markets”, a comprehensive and detailed guide to the concepts of Technical Analysis and their applications to the futures market. Till this day the author’s book is characterized as the “Bible” of Technical Analysis. Almost thirty years later the same concepts are applied to almost any pattern that can be plotted on graph in some way or form, from the commonly used currency fluctuations all the way to

‘The goal of any automated system, other than obviously being profitable, is to minimize drawdowns during times when the market conditions are not favorable to system trading.” — Dr John F. Clayburg. Hello: Auto trading has become a popular way of making money on the markets. It offers great opportunities when it comes to forex trading. The future of auto trade looks spectacular. The idea of making money consistently without lifting your fingers is intriguing. Trillions of dollars are changing

Andrei Knight , Chief Technical Strategies, gave us his key tips to do a better Fibonacci analysis in an exclusive interview recorded at the FXstreet.com’s International Traders Conference 2009 in Barcelona. Andrei comments the four essential points in Fibonacci.

Some of the best stories about global positioning systems (GPS’s) are the weird detours they sometimes recommend to drivers. Just like some of the weird detours that financial markets can make you take when you think they would be better off going in a straight line either up or down, depending on how you’ve positioned your trades. Not long ago, while taking a trip with my family through Great Smoky Mountains National Park on the way to Gatlinburg, Tenn., I decided to use my GPS to drive

This article is taken from the YourTradingEdge magazine (SEP/OCT 2009 issue) The author, Wayne McDonell is the Chief Currency Coach of FX Bootcamp. He is a member of the US National Futures Association and registered as a Commodities Trading Advisor. His latest book ‘ The FX Bootcamp Guide to Strategic and Tactical Forex Trading ’ is available from Wiley Publishing. Wayne McDonell provides analysis of the currency market: how professionals use weekly pivot points. “A few weeks ago, I was lucky

Use of Prior Day Highs and Lows Each of the intraday trading techniques discussed so far have relied on reference levels arrived at by means of mathematical calculations. The technique discussed in this section, in contrast, will deal with a set of support and resistance levels which are much more intuitively obvious. In short, we will discuss a technique for using the prior day’s price extremes as a means of determining market-based valuation levels. If market activity is thought of as an

Technical analysis can be defined as the study of past price behavior in an effort to determine patterns and trends that are believed to be predictable of the future. At the core of this school of thought is the assumption that human behavior is repetitive in nature. We all recognize that, although human behavior patterns may have recurrent tendencies, they do not normally express themselves in the same exact, mechanical manner each time. Even with this qualification in mind, technical

Pivot System Support and Resistance Judgements made about likely market behavior which are based on momentum analysis can be even more productive if we have predetermined levels available which can act as “price templates” in interpreting the day’s trading activity. The “Pivot System” is one such approach. Floor traders and other professionals who do the actual buying and selling of futures contracts in the trading pits of the exchanges, generally employ very similar systems for valuing the

Dynamic Support & Resistance Levels for Intraday Trading As helpful as Pivot System levels often are, a significant drawback to their use lies in the fact that they are calculated from the prior day’s price action, and may not accurately reflect recent changes in market psychology. Effective intraday trading also requires a means of identifying support and resistance which can more easily adapt and more accurately represent price activity under rapidly changing market conditions. The 20