Elementary

The beginner’s guide to technical analysis

Support and Resistance Levels

To start your education on technical analysis, let’s begin with the basics: support and resistance!

  1. What is Support and Resistance?

    Let’s start with the most basic concept of price action analysis and how to start plotting them.

  2. Trend Lines

    The most basic–but powerful–charting tool in the tool box.

  3. Trend Channels

    Now that you understand trendlines, let’s take it a step further into channels to see opportunities in trends.

  4. How to Trade Support and Resistance

    Time to learn how to trade the lines using two simple ideas: the Bounce and the Break!

  5. Summary: Trading Support and Resistance

    A quick recap on support and resistance zones, and how to spot potential trading opportunities with them.

Japanese Candlesticks

Thank you, Mr. Steve Nison, for “discovering” the art of candlesticks!

  1. What is a Japanese Candlestick?

    See why reading Japanese candlestick charts is a popular component of technical analysis.

  2. Japanese Candlestick Anatomy

    Just like humans, candlesticks have different body sizes. As forex traders, it’s important to take note of what type of body a candlestick takes!

  3. Basic Japanese Candlestick Patterns

    What do spinning tops, marubozus, and dojis have in common? They’re all the basic types of candlesticks!

  4. Single Candlestick Patterns

    What the heck is the difference between a hammer and a hanging man? Time to start learning about your basic candlestick patterns!

  5. Dual Candlestick Patterns

    They say that trouble comes in twos. Read on to find out how dual candlestick patterns may not necessarily spell double trouble for your account.

  6. Triple Candlestick Patterns

    In the forex market, three’s not always a crowd. Not when you’re talking about morning stars, black crows, and three inside up patterns, that is.

  7. Japanese Candlestick Cheat Sheet

    Think you’re ready to spot basic candlestick patterns with blindfolds on? If not, don’t worry! Here’s a candlestick pattern cheat sheet just for you.

  8. Candlesticks with Support and Resistance

    Learn how to trade candlesticks with support and resistance levels.

  9. Common Mistakes That New Traders Make With Japanese Candlesticks

    Here are five mistakes that new traders often make when using Japanese candlesticks.

  10. Summary: Japanese Candlesticks

    Here’s a rundown of what you need to remember about Japanese candlestick patterns.

Fibonacci

Now that you know about the basic Japanese candlestick patterns, why not take it to the next level and learn about the Fibonacci retracement tool?

  1. Fibonacci Trading

    No, Fibonacci is not some type of pasta. Learn all about the man behind the concept and what it actually means.

  2. How to Use Fibonacci Retracements

    The first thing you should know about the Fibonacci retracement tool is that it works best when the market is trending.

  3. Fibonacci Retracements are NOT Foolproof

    What happens when Fibonacci fails? Could it be because of your swing highs and lows, or are markets just not responding to it?

  4. How to Use Fibonacci Retracement with Support and Resistance

    In this lesson, we’ll show you how to combine the Fibonacci tool with support and resistance levels.

  5. How to Use Fibonacci Retracement with Trend Lines

    What’s another way to tilt Fibonacci levels in your favor? Combining it with trend lines, of course!

  6. How to Use Fibonacci Retracement with Japanese Candlesticks

    Check out how combining candlestick patterns with Fibonacci levels can improve your trading odds.

  7. How to Use Fibonacci Extensions to Know When to Take Profit

    Fibonacci levels aren’t only used to spot entry areas – they’re also good places to take profit!

  8. How to Use Fibonacci to Place Your Stop so You Lose Less Money

    If you can take profit at Fib levels, then you can definitely place stop losses there too!

  9. Summary: Fibonacci Trading

    Here’s a review of what exactly the Fib levels are, as well as their use in trading.

Moving Averages

Thinking of trading in a trending environment? Try using moving averages!

  1. What Are Moving Averages?

    A moving average is simply a way to smooth out price action over time. Here’s what it looks like.

  2. Simple Moving Average (SMA) Explained

    These are calculated by adding up the last “X” period’s closing prices and then dividing it by X. Confused? Don’t worry, we’ll make it crystal clear.

  3. Exponential Moving Average (EMA) Explained

    Think an SMA is too easy breezy for you? Try your hand at using EMAs!

  4. Simple vs. Exponential Moving Averages

    How does an SMA differ from an EMA? It’s pretty simple, actually.

  5. How to Use Moving Averages to Find the Trend

    One sweet way to use moving averages is to determine trends. And that’s just the beginning!

  6. How to Use Moving Average Crossovers to Enter Trades

    If MA lines cross over one another, it may signal that the trend is about to change soon.

  7. How to Use Moving Averages as Dynamic Support and Resistance Levels

    Another way to use moving averages is to use them as non-traditional support and resistance levels. Here’s how:

  8. How to Use Moving Average Envelopes

    Learn how to use moving average envelopes (MAE) to help you confirm trends or identify overbought and oversold levels.

  9. How to Analyze Trends With Moving Average Ribbons

    What’s a moving average ribbon? Learn how to easily identify bullish or bearish trends using moving average ribbons.

  10. How to Trend Trade with Guppy Multiple Moving Average (GMMA)

    The Guppy Multiple Moving Average (GMMA) indicator provides an interesting trading approach using moving average ribbons.

  11. Summary: Using Moving Averages

    You may forget your name, but you should never forget the basics of moving averages!

Popular Chart Indicators

Trading is like building a house–you gotta have the right tool for the job at hand. So let’s put more tools in our tool box!

  1. How to Use Bollinger Bands

    What better way to start building up your trading toolbox than by reading up on Bollinger Bands!

  2. How to Use Keltner Channels

    The Keltner Channel is a moving average band indicator whose upper and lower bands adapt to changes in volatility. Learn how the Keltner Channel is used to give overbought and oversold readings and signal possible price breakouts.

  3. How to Use the MACD Indicator

    The MACD is used to identify moving averages that indicate a new trend. With a MACD, it’s all about three numbers.

  4. How to Use Parabolic SAR

    In trading trending markets, it is equally important to identify when the trend ends. The parabolic SAR might be just what you need!

  5. How to Use the Stochastic Indicator

    Learn how traders use the Stochastic indicator that help determine where a trend might be ending.

  6. How to Use RSI (Relative Strength Index)

    If you find that Stochastic isn’t your cup of tea, then you might want to take a look at the good ol’ RSI.

  7. How to Use Williams %R (Williams Percent Range)

    The Williams %R, or simply “%R”, is a momentum indicator that moves between 0 and -100, providing insight into the weakness or strength of a currency pair. %R is an overbought and oversold technical indicator that may offer potential buy and sell signals.

  8. How to Use ADX (Average Directional Index)

    ADX is typically used to identify whether the market is ranging or starting a new trend. Here’s how traders usually read ADX signals:

  9. Ichimoku Kinko Hyo

    No, “Ichimoku Kinko Hyo” ain’t Japanese for “May the pips be with you,” but it can help you grab those pips nonetheless.

  10. Trading with Multiple Chart Indicators

    Now that you know how some of the most common chart indicators work, you’re ready to get down and dirty with some examples.

  11. What is the Best Technical Indicator in Forex?

    Now on to the good stuff: Just how profitable is each indicator on its own?

  12. Summary: Popular Chart Indicators

    Here’s a recap of the latest trading tools that you’ve learned that will make your momma proud!