Swing Charts

<div dir="ltr" style="text-align: left;" trbidi="on"> <div style="text-align: justify;"> <span style="color: blue;"><b>OVERVIEW</b></span><br>A swing chart is another member of a genre of charts referred to as reversal charts. As stated in Chapter 7, a reversal chart is any chart that filters raw data in order to accentuate significant points of interest while ignoring points of less interest. All technical analysts find peaks and valleys of great interest, whereas they find areas of lateral price movements less interesting. Peaks and valleys are those points of inflection where price directions reverse and the slope of an existing trend changes its arithmetic sign (minus to plus and plus to minus) (Figure 9-1).</div> <div style="text-align: justify;"> </div> </div>

Swing Charts

OVERVIEW A swing chart is another member of a genre of charts referred to as reversal charts. As stated in Chapter 7, a reversal chart is ...

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Renko Charts

<div dir="ltr" style="text-align: left;" trbidi="on"> <div style="text-align: justify;"> <span style="color: blue;"><b>OVERVIEW</b></span><br>The renko charting method is thought to have acquired its name from renga, which is the Japanese word for “bricks.” Renko charts are similar to three-line-break charts except that in a renko chart, a line (or brick, as they are called) is drawn in the direction of the prior move only if prices move by a minimum amount (i.e., the box size). The bricks are always equal in size. For example, in a fiveunit renko chart, a 20-point rally is displayed as four five-unit-tall renko bricks.</div> <div style="text-align: justify;"> </div> </div>

Renko Charts

OVERVIEW The renko charting method is thought to have acquired its name from renga, which is the Japanese word for “bricks.” Renko charts ...

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Point and Figure Chart

<div dir="ltr" style="text-align: left;" trbidi="on"> <div style="text-align: justify;"> <span style="color: blue;"><b>OVERVIEW</b></span><br> The point and figure chart is a member of the genre of charts normally referred to as reversal charts (Figure 1). A reversal chart is any chart that filters the raw OHLC data in order to accentuate significant points of interest while ignoring points of less interest. All technical analysts find peaks and valleys of great interest, whereas they find areas of lateral price movements less interesting. Peaks and valleys are those points of inflection where price directions reverse and the slope of an existing trend changes its arithmetic sign (minus to plus and plus to minus).</div> <div style="text-align: justify;"> <span style="color: blue;"><b></b></span><br> </div></div>

Point and Figure Chart

OVERVIEW The point and figure chart is a member of the genre of charts normally referred to as reversal charts (Figure 1). A reversal cha...

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Wave Theory

<div dir="ltr" style="text-align: left;" trbidi="on"> <div style="text-align: justify;"> <span style="color: blue;"><b>OVERVIEW</b></span><br> Wave theory is one of the most intriguing and perplexing studies within the entire technical analysis complex. It is also the central subject of the remainder of this book.</div> <div style="text-align: justify;"> <br> </div></div>

Wave Theory

OVERVIEW Wave theory is one of the most intriguing and perplexing studies within the entire technical analysis complex. It is also the ce...

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Crossover Trading Systems

<div dir="ltr" style="text-align: left;" trbidi="on"> <div style="text-align: justify;"> <span style="color: blue;"><b>OVERVIEW</b></span><br>Crossover trading systems consist of various indicators and oscillators and are unique in the technical analysis of security prices. Rather than predicting future numeric values, they signal a particular market action to execute, such as (1) initiate a long position, (2) initiate a short position, (3) liquidate a long position, (4) liquidate a short position, (5) reverse a long position equivalent to (3) and (2), or reverse a short position equivalent to (4) and (1).</div> <div style="text-align: justify;"> </div> </div>

Crossover Trading Systems

OVERVIEW Crossover trading systems consist of various indicators and oscillators and are unique in the technical analysis of security pric...

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Econometric Models

<div dir="ltr" style="text-align: left;" trbidi="on"> <span style="color: blue;"><b>OVERVIEW</b></span><br>Within the technical analysis family, econometric models are unique because they belong to the only category that generates a continuous stream of discrete numeric values as the forecast. For example, if the analyst has determined that a particular time series exhibits distinctly linear properties, then the following linear regression model should be used:<br> <br> </div>

Econometric Models

OVERVIEW Within the technical analysis family, econometric models are unique because they belong to the only category that generates a cont...

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Pattern Recognition

<div dir="ltr" style="text-align: left;" trbidi="on"> <div style="text-align: justify;"> <span style="color: blue;"><b>OVERVIEW</b></span><br> Probably the most successful and most used means of making decisions and analyzing Forex markets is technical analysis. The difference between technical analysis and fundamental analysis is that technical analysis is applied only to the price action of the market. While fundamental data often can provide only a long-term forecast of exchange-rate movements, technical analysis has become the primary tool to analyze and trade short-term price movements successfully, as well as to set profit targets and stop-loss safeguards, because of its ability to generate price-specific information and forecasts. Technical analysts are by nature chart mongers. The more charts there are, the better is the forecast.</div> <div style="text-align: justify;"> <br> </div></div>

Pattern Recognition

OVERVIEW Probably the most successful and most used means of making decisions and analyzing Forex markets is technical analysis. The diff...

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Currency Futures

<div dir="ltr" style="text-align: left;" trbidi="on"> <div style="text-align: justify;"> <span style="color: blue;"><b>FUTURES CONTRACTS</b></span></div> <div style="text-align: justify;"> A futures contract is an agreement between two parties: a short position, the party who agrees to deliver a commodity, and a long position, the party who agrees to receive a commodity. For example, a grain farmer would be the holder of the short position (agreeing to sell the grain), whereas the bakery would be the holder of the long position (agreeing to buy the grain).</div> <div style="text-align: justify;"> <br> </div></div>

Currency Futures

FUTURES CONTRACTS A futures contract is an agreement between two parties: a short position, the party who agrees to deliver a commodity,...

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Spot Currencies

<div dir="ltr" style="text-align: left;" trbidi="on"> <div style="text-align: justify;"> <i>Foreign exchange</i> is the simultaneous buying of one currency and selling of another. Currencies are traded through a broker or dealer and are executed in pairs, for example, the Euro and the U.S. dollar (EUR/USD) or the British pound and the Japanese yen (GBP/JPY).</div> <div style="text-align: justify;"> <br> </div></div>

Spot Currencies

Foreign exchange is the simultaneous buying of one currency and selling of another. Currencies are traded through a broker or dealer and ...

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