Learn to Trade
- Details
This system looks for inside day using bar charts on daily time frame or candlestick charts,
- Details
This system requires 3 time scales to be used:
• The first time scale is the 4-hour chart - confirmation.
• The second time scale is 1-hour chart - confirmation.
• The third time scale is the 5-min chart - The signal.
Each if these time scales has a 60 SMA (simple moving average)attached to it.
If on the first time scale (4-hour chart) the price is above the 60 SMA, then you would look to buy.
You then would move to the second time scale(1-hour chart). If this is also above the 60 SMA you have another time scale that lines up, again you will be looking to buy.
(if this was not above the 60 SMA then you would stop and wait for this to go above).
You then move on to the third time scale(5-min chart) which gives you your entry level. This also has to be above the 60 SMA.
The buy signal comes once the previous high on this time frame gets broken, that's your buy signal.
Basically all the time frames must show the price above the 60 SMA or else there will be no signal created.
This system has been created by Andy Perry Captain Currency if you need any more information.
- Details
1st hour breakout based on a five minute chart
This system works on the basis that the first hour of trading sets the tone for the rest of the trading day.
- Details
Point and figure charts are distinctive in terms of their analysis and construction. Unlike other charts, time does not play a big factor.
- Details
Line charts are created by a single line joined together by the end of day closing price.
Same is true of all time frames, so if you were to plot the weekly line chart then you would use the closing price at the end of the trading week.
Chart is provided by MetaStock and is an example of a line chart
Please click on picture below to get a larger image
Advantages
- Line charts are very simple to use due to the lack of complexity.
- They can be easily interpreted.
- They can also give a quick snapshot.
Disadvantages
- The down side to line charts are there lack of data.
- The moves during the day are not shown so trying to find true supports and resistances area can be difficult and less reliable.
- Details
A bar chart plots the opening price and closing price and intraday peaks and troughs. All this from a simple vertical line termed a bar.