Resistance lines are one of the basic tools of technical analysis. They are lines that denote areas where price action is likely to pause, stop or reverse. Why is this? It is because they are areas on a chart or price levels where the market is selling and is said to be resistant to higher […]
In a previous posting I began a series on support and resistance. In that article I laid out two basic rules for support and resistance lines that all traders should follow. These are 1) S/R lines are not a signal, they are places where signals are likely to happen. If this sounds familiar you are […]
This article is in response to a question I get asked, or see asked, just about every week. There are dozens of great answers out there but none seem to focus on the mechanics of actually drawing the lines and how that may affect your analysis. I began this article by grouping support, resistance and […]
Multiple Time Frame Analysis, or MTA from here, is a well recognized form of technical analysis and one used by nearly every trader, even if they don’t realize it. I speak and write of it often, as does Cory, another of BONETS pro traders. While not a requirement for success, it is a strategy that […]
I know, I know, all of you who have read my previous posts are thinking, “didn’t he say that Fib’s are not signals?” It’s true, I have and it is correct. Just because price action has reached your Fibonacci Retracement level it does not signal an entry. You must wait for a signal/confirmation from other […]
Support and resistance are one of the most basic forms of technical analysis. Like many other tools of the trade, being basic does not make it simple. Identifying and using support and resistance, S/R, successfully as part of your daily trading routine takes time and practice. I am here today to help you gain an […]
As you may know, I really like Fibonacci Retracements. They are a fantastic tool for technical analysis with many uses and applications. Basically, FR’s are target areas for support and resistance based on ancient mathematical relationships found in nature. At heart is the Golden Ratio, which can be found between all living things such as […]
Historical charts, or just charts, are the means by which we do what we do. Trade. Charts of historical price action are incredibly valuable and there is no question of there importance to technical analysis. However, there is widespread debate over the importance of using historical data to back test and its reliability on future […]
If you are looking for an article about trading techniques or tactics this is not it. This is an article unveiling many of the truths, or half truths, surrounding the binary options industry. Am I talking about scams, affiliate marketers, tipsters or gurus? No, I am talking about the industry itself, where it came from, […]
I began a discussion on when to use bearish positions in an earlier article. In that piece I focused on trading ranges and the use of oscillators like MACD, stochastic or RSI. Trading ranges, or the limits of those ranges, present high probability target areas in which signals can be taken, both bullish and bearish. […]