The Forex Pro

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

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

This article is taken from the Forex Journal (December 2009 issue). The author, James Chen , CTA, CMT, is Chief Technical Strategist at FX Solutions, a leading Forex broker. He is a registered Commodity Trading Advisor and a Chartered Market Technician, as well as the author of the book, Essentials of Foreign Exchange Trading (John Wiley & Sons, 2009). His newest book, Essentials of Technical Analysis for Financial Markets (John Wiley & Sons) will be released in early 2010. James Chen

This article is taken from the Trader’s Journal magazine (December 2009 issue) The author, Don Dawson , has been trading the futures markets for 20 years. His perseverance through the ups and downs of trading, openness to experience of others, balanced tolerance for risk and patience to wait for his setups are a few of his strengths as a trader. He obtained his Series 3 license in 1990. Soon afterwards, he registered as a Commodity Trading Advisor with the National Futures Association and

This article is taken from the Trader’s Journal magazine (October 2009 issue) The author, Don Dawson , has been trading the futures markets for 20 years. His perseverance through the ups and downs of trading, openness to experience of others, balanced tolerance for risk and patience to wait for his setups are a few of his strengths as a trader. Don obtained his Series 3 license in 1990. Soon afterward, he registered as a Commodity Trading Advisor with the National Futures Association and

Markus Heitkoetter, CEO at Rockwell Trading, comments the best way to determinate trading conditions. He also shares some tips about how to identify what markets are doing and the necessity of incorporating volatility in your trading. Markus gives know his three favorite technical indicators. An exclusive interview with Markus Heitkoetter, recorded during the ITC 2009: