In technical analysis, trading indicators can be categorized into three main categories as follows:
1. Leading indicators
This type of indicators tend to give traders buy or sell signals before market makes its turn. the leading indicators predict a top or a bottom of a market but they do not predict specific price levels or duration of [...]
Archive for the ‘Technical Analysis’ Category
Types of Indicators
Posted by Taro on June 23rd, 2010
How to choose your Indicators?
Posted by Taro on June 9th, 2010
There is no single indicator that will produce 100% profitable trades. Therefore, choosing an indicator becomes a decision of personal choice, rather than right or wrong. A successful trader with a poor indicator may result in profitable trades while a good indicator used by an inexperienced trader, may most likely lose money.
So how do you [...]
Day Trading for Beginners
Posted by Taro on May 19th, 2010
As I mentioned in previous article, a key to success in day trading is to minimize the size of your loss while maximize the profit for each trade.
Since day traders have to keep their losses small, hence, they will get stopped out often. This causes their win/loss ratio of their trades to be low because [...]
Introduction to Day Trading
Posted by Taro on May 19th, 2010
At first, the professional day traders are persons who trade in the provided trading room of brokerage firms. They have right amount of training and experience.
As the revolution of technology, traders can now trade remotely from their homes. Every brokerage firm provides direct access and electronic execution equipments that allows traders to have the same [...]
Continuation Patterns
Posted by Taro on May 18th, 2010
In earlier articles, I have introduced you to basic reversal patterns; double top & double bottom, head-and-shoulder & reverse head-and-shoulder. Besides the reversal patterns, the price patterns falls into another category, the continuation patterns.
While the reversal patterns usually forecast an upcoming trend reversal, the continuation patterns, in the other hand, indicate an interlude in a [...]
Sideways Patterns
Posted by Taro on May 18th, 2010
The stocks’ price simply moves in three directions; up, down and sideways. For the stocks that move in sideways, the movement of price is not trending and can be divided into three basic categories: trading in a range, congestion and consolidation.
Posted in Technical Analysis 
Tags: Chart Pattern, Indicator, Price Pattern, Technical Analysis 
No Comments »Trend Reversal Patterns: Head-and-Shoulder & Reverse Head-and-Shoulder
Posted by Taro on May 16th, 2010
By getting started with reversal patterns, we should start with the most basic patterns because it is easier for you to recognize them in charts. Therefore in previous article, I introduced you to the most basic and well-known reversal patterns; Double Top and Double Bottom.
In this article, I am going to introduce you to another [...]
Trend Reversal Patterns: Double Top & Double Bottom
Posted by Taro on May 14th, 2010
In addition to indicators; such as Moving Average (MA), Relative Strength Index (RSI) or Moving Average Convergence / Divergence (MACD) that traders can add to the price chart to help them in technical analysis. The price chart itself can help traders in market trend prediction.
When analyzing the price, traders may look for a reversal pattern. [...]
Consider Risk/Reward Ratio in Trading
Posted by Taro on May 14th, 2010
For traders, learning risk/reward ratio in trading is worth your time and essential for trading success. In daily live, we unconsciously weight risk before we do anything, including buying something, quitting your job or even putting your hand on hot stove. However when it comes to trading, traders are often careless about this.
If you have [...]
How to Place stop loss for short-term trading?
Posted by Taro on May 13th, 2010
The very first question traders should ask themselves before enter a trade is “Where is my stop loss point?” Find your stop loss and evaluate your risk. If the stop is too far away from the entry point or it is further from the entry than the target point, do not enter the trade!
There are [...]
Posted in Technical Analysis Tags: Money Management, Stops, Technical Analysis, Trading System No Comments »
