Technical Analysis

  • Technical analysis is a method for projecting the future direction of the price of financial market assets. Furthermore, it can also be used in the setting of potential price targets. Also read our Expert forex market forecasts
  • The direction of future prices are determined by analysing previous market data; primarily price, time and volume.
  • Technical analysis predictions are rejected by proponents of Efficient Market Hypothesis and Random Walk Theory, which predicts that future prices are effectively unpredictable.
  • Technical analysis uses many different tools, methods and techniques, but primarily it employs price charts plotted over time to identify price patterns and trends.
  • For this reason, Technical Analysts are also referred to as Chartists.

In this section we will provide articles to help develop the reader’s technical analysis knowledge base and to highlight ways in which technical analysis tools can be used for successful trading decisions.

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Intermediate

EURUSD, AUDUSD and USDCAD Updates

We have seen a very strong turn lower on Friday on EURUSD pair. Actually all dollar pairs showed stronger USD in the last few sessions, which is actually not a surprise as normally flows changes around holidays, and today is Presidents’ Day in the US. Normally this are only temporary flows, which means that current … Continued

Intermediate

Bitcoin showing evidences of a reversal

As expected BTCUSD fell down into 5th wave of wave (c) , a final leg of decline that we have been talking about a lot in our past reports. We have seen a move into our projected target zone where temproary low has been found; at the trend support line shown on a weekly chart … Continued

Intermediate

GOLD and S&P500

Precious metal such as gold, is trading in a bigger three-wave A)-B)-C) move. This labeling suggests a temporary consolidation in progress, that can find support near the lower Elliott wave channel line, and around the Fibonacci projection zone of 100.0, where wave C) would equal wave A). That said, current rally can be a temporary … Continued

Intermediate

German Dax

Good day traders! German dax can be trading in a bigger complex correction, which we labeled as big wave IV. As things stand right now, we see price unfolding a Elliott wave flat pattern, which is a complex pattern. Its structure is a 3-3-5, with final leg C having five legs and being motive (has … Continued

Intermediate

Silver and AUDUSD

Hello traders. Today, let’s take a glance at silver and AUDUSD. We can see that silver unfolded five minor waves within red wave i) at the 17.68 level, which can now suggest price to slow down and a new corrective retracement to follow. We are expecting red wave ii) to follow, with three of its … Continued

Intermediate

Triangle on USDMXN Points Towards New Lows

Good day traders! Today let’s take a glance at usdmxn and its possible Elliott wave triangle pattern. USDMXN is bearish, and is currently trading within a probable complex correction labeled as wave 4). We see choppy and slow price movement for the last few days, which can suggest a triangle correction to be in progress … Continued

Intermediate

Correction on Crude OIL Points Higher

Good day traders! Crude oil is trading choppy and overlapping for some time now, which suggests a higher degree Elliott triangle correction to be in progress within corrective wave 4). In fact we have seen recent drop to 55.90 as sub-wave C that has made only a three wave decline, so it looks like part … Continued

Intermediate

Triangle Correction on EURUSD Points Higher

Good day traders. On the daily chart of EURUSD, we can see that the trend is overall bullish and is unfolding a nice five-wave pattern within higher degree wave C) of IV. Wave C can be an impulse, which means it can unfold five, clear waves, which is currently the case. The other possibility would … Continued

Intermediate

Intra-day updates: Silver and German DAX

Good day traders! Silver is trading within wave v), specifically within sub-wave iv, that can see intra-day resistance at 16.18 level and push price lower. Former wave of higher degree wave iv) at 16.45 level indicates an extension of price towards the 15.86 region, where Fibonacci ratio of 61.8 can offer support and turn price … Continued

Intermediate

USD/JPY has it finally made it’s mind up?

Technically: After remaining it its 500 pip range for most of the year, is it time for the pair to move up and break above 114.00? Additional to the range, we have also seen a downwards channel from late 2016 to September 2017. The price broke above this channel in September and has pulled back … Continued

Intermediate

Bounce On EURUSD Suggests More Upside

Good day traders! Hope everybody is having a great day. Let’s start todays update with EURUSD. EURUSD has turned up in the last two weeks; it broke above the channel resistance line that normally confirms a previously completed move; in our case that was finished a-b-c decline from September high. As such, it seems that … Continued

Intermediate

EURUSD and AUDUSD Looking For More Weakness

Good day traders. Today’s article is about EURUSD and AUDUSD and their 4h development. Let’s get started. On the 4h chart of EURUSD, we see price trading within a bigger three-wave decline, away from September highs. This three-wave move can be part of a bigger bullish impulse or just a simple three-wave A-B-C move. Well, … Continued

Intermediate

USDMXN Looking For A Bearish Reversal

Good day traders! Today, let’s look at USDMXN, its 4h and 1h price movement. USDMXN made an overlapping five-wave affair within final wave v, which can be an EW ending diagonal. This is a sharp and powerful reversal pattern, that once finished tends to push price strongly into the opposite direction. Upside can be limited … Continued

Intermediate

AUDUSD and EURUSD Daily Views

Good morning traders! Today, let’s take a look at AUDUSD and EURUSD and its mid-term time frames. Let’s start with AUDUSD. On AUDUSD, we can see a potential top that can be locked in at the 0.8124 level. The following drop that occurred since then can be now a suggestion that more weakness can follow … Continued

Intermediate

Elliott Wave Analysis: Ending Diagonal On Silver

Good day traders! Let’s start the US session with our silver chart and its intra-day movement. On the hourly chart of silver, we can see that price made an overlapping bearish affair since October of 13, towards the 16.78 region. We see this five-wave move as a leading diagonal, an Elliott wave pattern that usually … Continued

Beginner

Elliott Wave Analysis: German Dax Looking Higher

Good day traders! Today, let’s take a look at German Dax and its intra-day pattern. Looks like stock market has still room for more upside, at least on European markets as German Dax shows a triangle consolidation since start of October. This is an A-B-C-D-E pattern with wave E now in play so fourth wave … Continued