Lesson 4 - Introduction to technical analysis



Price patterns A chart for a currency pair will begin to form predictable patterns during trends. A pattern usually forms when a pair is in the process of changing: slowing down, reversing trend, etc. When that happens, it's a signal to take a step back and evaluate what may happen. Proper understanding of price patterns on a chart will help you better determine the probability of the currency pair continuing the trend it was in, or reversing to develop a new trend. This helps you determine whether to buy, sell or hold. Price patterns are an underutilized and extremely valuable tool in your forex trading arsenal. It may take a little while to get comfortable dealing with the subtle nuances and occasional ambiguity that are a part of price pattern analysis, but once you get the basics figured out, you will be able to confidently make informed trading decisions. It's also important to understand that price patterns are visual representations of market psychology. They tell you when traders in the market are excited and moving, when they need to take a moment and catch their breath and regroup and when they are ready to get moving again. All price patterns are made of the following four pieces: Old trend: the trend that the currency pair is in as it starts to form the price pattern Consolidation zone: a constrained area where the pair isn't clearly continuing the trend or forming a new one Breakout point: the point which the currency pair breaks the consolidation zone New trend: the trend the currency pair enters coming out of the consolidation zone

Comments

  1. clear explanation..thx
  2. Wow great lessons John. I would like to know which FX trading platform or apps are trusted? Any help will be appreciated.
  3. thnx man!.
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  6. Superb analysis. U are simply great sir!
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  9. Kudos Alpari
  10. This is a very good teacher
  11. This guy is really a great teacher. Kudos!!
  12. most of my experience is trading equities. how well does this carry over to forex?
  13. Your a good teacher I hope you do more videos on this subject. Your clear, succinct and plain down to earth-honest in your approach! Luck from Australia!
  14. This Teacher is great...telling in a very simple way the technical things..Good help to poor peoples doing forex..God Bless Him
  15. thanx.................
  16. wow thanks your a really good teacher
  17. good vid
  18. I agree. He is a really good teacher!


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Duration: 9m 40s

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