Trading and Investing in the Forex Markets Using Chart Techniques
The financial markets are made up of people from very diverse backgrounds but whether by long or short term investment these market participants all have a desire to win by varying degrees. Many market participants, especially short term traders are often too interested in the release of some fundamental statement or some rumor or the latest bank recommendations than in the trading price of the asset which leads them to trade and fail because of emotions based trading. The daily price movements, the patterns, the volatility that appear on charts, are for whatever reason, the results of the actions of the crowd. To avoid making decisions based on heightened emotions, it is necessary to create your own plan based on your own analysis.

This book has been developed to demonstrate how a few relatively straight forward techniques can create a plan that does not rely on outside investment recommendations and therefore takes the emotions out of trading. The book demonstrates how to interpret the market price action in the shape of forms or patterns and Japanese candlesticks to help you:

  • Find markets that are changing from bullish to bearish and from bearish to bullish
  • Locate entry and exit points
  • Monitor the position for signs of change.

The book provides a series of charting techniques involving the use of candlesticks as graphical representations of market price actions in the Foreign Exchange markets. It presents methods of chart technical analysis for medium to long-term investing, in a market where despite strong returns when compared with other asset types, it is difficult to realize a profitable return.

The title does not dwell on already-known 'signals' represented by candlestick formations, but concentrates instead on how to confirm these signals by applying a variety of confirmation techniques which form a step-by-step process through the chapters of the book to finish by 'Putting It All Together'.

"1124373886"
Trading and Investing in the Forex Markets Using Chart Techniques
The financial markets are made up of people from very diverse backgrounds but whether by long or short term investment these market participants all have a desire to win by varying degrees. Many market participants, especially short term traders are often too interested in the release of some fundamental statement or some rumor or the latest bank recommendations than in the trading price of the asset which leads them to trade and fail because of emotions based trading. The daily price movements, the patterns, the volatility that appear on charts, are for whatever reason, the results of the actions of the crowd. To avoid making decisions based on heightened emotions, it is necessary to create your own plan based on your own analysis.

This book has been developed to demonstrate how a few relatively straight forward techniques can create a plan that does not rely on outside investment recommendations and therefore takes the emotions out of trading. The book demonstrates how to interpret the market price action in the shape of forms or patterns and Japanese candlesticks to help you:

  • Find markets that are changing from bullish to bearish and from bearish to bullish
  • Locate entry and exit points
  • Monitor the position for signs of change.

The book provides a series of charting techniques involving the use of candlesticks as graphical representations of market price actions in the Foreign Exchange markets. It presents methods of chart technical analysis for medium to long-term investing, in a market where despite strong returns when compared with other asset types, it is difficult to realize a profitable return.

The title does not dwell on already-known 'signals' represented by candlestick formations, but concentrates instead on how to confirm these signals by applying a variety of confirmation techniques which form a step-by-step process through the chapters of the book to finish by 'Putting It All Together'.

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Trading and Investing in the Forex Markets Using Chart Techniques

Trading and Investing in the Forex Markets Using Chart Techniques

by Gareth A. Burgess
Trading and Investing in the Forex Markets Using Chart Techniques

Trading and Investing in the Forex Markets Using Chart Techniques

by Gareth A. Burgess

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Overview

The financial markets are made up of people from very diverse backgrounds but whether by long or short term investment these market participants all have a desire to win by varying degrees. Many market participants, especially short term traders are often too interested in the release of some fundamental statement or some rumor or the latest bank recommendations than in the trading price of the asset which leads them to trade and fail because of emotions based trading. The daily price movements, the patterns, the volatility that appear on charts, are for whatever reason, the results of the actions of the crowd. To avoid making decisions based on heightened emotions, it is necessary to create your own plan based on your own analysis.

This book has been developed to demonstrate how a few relatively straight forward techniques can create a plan that does not rely on outside investment recommendations and therefore takes the emotions out of trading. The book demonstrates how to interpret the market price action in the shape of forms or patterns and Japanese candlesticks to help you:

  • Find markets that are changing from bullish to bearish and from bearish to bullish
  • Locate entry and exit points
  • Monitor the position for signs of change.

The book provides a series of charting techniques involving the use of candlesticks as graphical representations of market price actions in the Foreign Exchange markets. It presents methods of chart technical analysis for medium to long-term investing, in a market where despite strong returns when compared with other asset types, it is difficult to realize a profitable return.

The title does not dwell on already-known 'signals' represented by candlestick formations, but concentrates instead on how to confirm these signals by applying a variety of confirmation techniques which form a step-by-step process through the chapters of the book to finish by 'Putting It All Together'.


Product Details

ISBN-13: 9780470685020
Publisher: Wiley
Publication date: 02/09/2010
Series: Wiley Trading , #543
Sold by: JOHN WILEY & SONS
Format: eBook
Pages: 226
File size: 4 MB

About the Author

Gareth A Burgess has over 10 years experience applying chart techniques to investment analysis creating technical views and strategies and is a dedicated private investor himself. He is founder of the chart workshop (www.chart-workshop.de), a provider of technical views for investors. His current research interests are on moving average based signals from which many trading systems are based today. Burgess studied at the University of Liverpool and the University of Konstanz, Germany, and graduated with honours. Burgess also went on to complete a Masters research degree, M.Phil.

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Table of Contents

Preface

1 Candlesticks = Signals

Introduction

Japanese Candlestick Signals

The Single Signals

Japanese Candlesticks – Double Candlestick Signals

Some Candlestick Examples

Some Further Candlestick Examples

Chart Analysis Exercise 1

Chart Analysis Exercise 1 – Answers

Summary

2 Chart Patterns = Opportunity

Continuation Patterns

Reversal Patterns

Bull Flags

Bear Flags

Bull Pennant

Bear Pennant

Bull Symmetrical Triangle

Bear Symmetrical Triangle

Bull Falling Wedge

Bear Rising Wedge

Inverted Head and Shoulders Continuation Pattern

Reversal Patterns

Bullish Head and Shoulders Reversal Pattern

Bearish Head and Shoulders Reversal Pattern

Triple Top Pattern

Triple Bottom Pattern

The Double Top Pattern

The Double Bottom Pattern

The Bullish and Bearish “V” Pattern

Bullish “V” Top

Bearish “V” Bottom

The Broadening Top and Bottom

Some Chart Pattern Examples

Chart Analysis Exercise 2

Chart Analysis Exercise 2 – Answers

Summary

3 Buying and Selling = Support and Resistance Levels

Support and Resistance

Trend Lines

Trend Line Channels

Intermediate Trend Lines

Internal Trend Lines

Pivot Lines

Predetermined Pivot Highs and Lows

Calculated Pivot Lines

Fibonacci Levels

Chart Analysis Exercise 3

Chart Analysis Exercise 3 – Answers

Chart Analysis Exercise 4

Chart Analysis Exercise 4 – Answers

Summary

4 Applying Confirmation = Confidence Building

Simple Moving Average (SMA)

Simple Moving Average Channel

Chart Analysis Exercise 5

Chart Analysis Exercise 5 – Answers

Momentum Oscillators

The RSI Oscillator

The Stochastic Oscillator (Slow)

The MACD Oscillator

Chart Analysis Exercise 6

Chart Analysis Exercise 6 – Answers

Chart Analysis Exercise 7

Chart Analysis Exercise 7 – Answers

Summary

5 Entry and Exit = Right or Wrong?

Climax Volume

Pivot Lines for Entry and Exit

High/Low/Close and High/Low Calculated Pivot Lines

Candlesticks on Short-Term Charts

Patterns on Short-Term Charts

Summary

6 Putting It All Together = Practice and Patience

Finding the Technical Picture

Creating the Watch List

Money Management

Summary

A Word on Filters

A Word on Recommendations

Final Word

Appendix

Further Reading

Index

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