Double/multiple tops are characterized by resistance points, while double/multiple bottoms are characterized by support points. These are some of the most used chart patterns. These chart patterns can be used as scalping strategies as they frequently appear and yield quick results. As we can see in the image, a double top occurs when the price … Read more
Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, like an oscillator, or contrary to other data. Divergence warns that the current price trend may be weakening, and in some cases may lead to the price changing direction. Divergence can be used as a scalping strategy as … Read more
A Bollinger Band is a technical analysis tool defined by a set of trendlines plotted two standard deviations (positively and negatively) away from a simple moving average (SMA) of a security’s price, which can be adjusted to user preferences. In the above chart, we see the Bollinger bands. This indicator was plotted using a 20-period simple moving average, which … Read more
High-frequency trading or high-frequency forex is a trading technique that uses algorithms to execute many trades in a short period. The algorithms, commonly called bots, follow specific rules stipulated in the code and execute a trade once all the rules are met. The algorithm can be set to trade several different currencies simultaneously, which a … Read more
Double/multiple tops are characterized by resistance points while double/multiple bottoms are characterized by support points. These are some of the most used chart patterns.These chart patterns can be used as scalping strategies as they appear frequently and yield quick results. As we can see in the image, double top occurs when the price reaches a … Read more
The moving average crossover strategy is a scalping strategy which involves the crossing of two moving averages. Before we get into the strategy, lets us understand what moving averages are with respect to trading.The moving average (MA) is a simple technical analysis tool that smooths out price data by creating a constantly updated average price. The … Read more
Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. Traders use the MACD to identify when bullish or bearish momentum is high in order to identify entry and exit points for trades.The MACD is calculated by subtracting the 26-period exponential moving average (EMA) from the … Read more
Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, or is moving contrary to other data. Divergence warns that the current price trend may be weakening, and in some cases may lead to the price changing direction. Divergence can be used as a … Read more
Here are the best and most reliable candlestick patterns that actually work for day traders.
Our candlestick patterns are explained with examples so any trader can learn how to trade with price action.