How to Spot Counter Attack Line Opportunities
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How to Spot Counter Attack Line Opportunities

Via Forexop What is a Counter Attack Line? A counter attack line happens when there’s a price gap between the close and open of two sessions. The “counter attack” fully reverses the gap taking the price back to the close of the previous session. A bullish counter attack line happens in a downtrend when a...

Fading the Fakeout – How to Trade Against False Breakouts
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Fading the Fakeout – How to Trade Against False Breakouts

Via Forexop Unless there’s some change in fundamentals, asset prices don’t tend to change that quickly that often. But sentiment perpetually swings from fear to greed as information and disinformation filter through. The noisy blips even out over time, and when markets are liquid enough they tend to find their fair value. Fading is a...

The Bat Pattern: Harmonic Chart Trading
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The Bat Pattern: Harmonic Chart Trading

Via Forexop Bats are five point chart patterns that can signify either a bullish or bearish breakout is building. They are quite similar in appearance to the butterfly and crab but with slightly different ratios. Point D in the bat makes a shallower reversal than the other patterns and should make a retracement of about...

How to use Pyramid Trading to Build on Winners
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How to use Pyramid Trading to Build on Winners

Via Forexop Pyramiding is a trading system that drip feeds money into the market, gradually as a trend develops. This strategy has several advantages. The two main ones are risk limitation and building on winners. We’ll look at each of these in turn. Risk Limitation with Pyramiding The first and most obvious reason why pyramiding...

Three Line Strike
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Three Line Strike

Via Forexop A three line strike is a continuation group of candlesticks that has three in the direction of a trend followed by a final candle that pulls back to the start point. Traders use the three line strike as an opportunity to buy at a recent trend low or sell at a recent high....

Bullish, Bearish Cypher Patterns
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Bullish, Bearish Cypher Patterns

Via Forexop The cypher is a five point harmonic chart pattern, made up of points XABCD. The cypher is easy to spot on a chart because it has a characteristic wave like appearance displaying either rising peaks or falling valleys. You can trade the cypher like other harmonic patterns, by waiting for a reversal at...

To Specialize or Diversify?
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To Specialize or Diversify?

Via Forexop Last updated on August 19th, 2019 To reach the level of a profitable trader there are two opposing views. One is that to be successful you have to specialize by trading in one market alone. The other is that the only way to lasting profits is through diversification. Specialize or diversify? © forexop Whether you...

Bullish Cup and Handle Chart Pattern
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Bullish Cup and Handle Chart Pattern

Via Forexop The cup and handle is a very distinctive pattern that can appear on any financial chart. The standard interpretation of the cup and handle is that it is a bullish sign. It signals a likely continuation in a rising trend.  Cup and handles are common and can appear at any timeframe. What Is...

The ADX Indicator and Its Uses
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The ADX Indicator and Its Uses

Via Forexop When you do any kind of trend trading, the ADX is one indicator that you will want understand well. The ADX is especially good at highlighting trends, where they begin and where they’re likely to end. The ADX indicator Explained The Average Directional Movement Index or ADX for short consist of three separate...

The Average True Range Indicator
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The Average True Range Indicator

Via Forexop The average true range or ATR for short is a way of measuring volatility in price. One useful aspect of the ATR is that it captures both intraday volatility and between day volatility. Other measures based on standard deviation of prices usually only do one or the other. J. Welles Wilder Jr. created...

Catching the Pullback Trade
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Catching the Pullback Trade

Via Forexop Pullback trading is a strategy favored by swing traders and trend traders alike. This is for the simple reason that a pullback, if timed right can lead to an immediate gain. For the short term trader it creates an opportunity to capture a rapid swing back as the price returns to trend. For...

How to Use Relative Strength Index to Make Trading Decisions
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How to Use Relative Strength Index to Make Trading Decisions

Via Forexop The RSI or relative strength index is a popular technical analysis tool that is useful for detecting when a security is overbought or oversold. That is when the price has made a rapid movement in a single direction without a pullback. Relative Strength Index © forexop Relative Strength Index The real value of the RSI...

TRIX Crossover Strategy
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TRIX Crossover Strategy

Via Forexop TRIX or the triple exponential moving average is a trend analysis system that has been around since the early 80s. You can use it to analyze trend momentum and reversals – TRIX is deployed in various swing trading, scalping, and day trading strategies. This article describes a TRIX crossover strategy. Understanding the TRIX...

Forex Scalping Explained: Strategies, Risks and Implementation
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Forex Scalping Explained: Strategies, Risks and Implementation

Via Forexop Scalping is a type of day trading where the aim is to make small profits on a frequent basis. There is no single definition of a scalping strategy. However, several things set scalping apart from other trading strategies. Firstly, scalpers do not hold positions for very long and rarely hold overnight positions. Secondly,...

How to Read an Ichimoku Chart
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How to Read an Ichimoku Chart

Via Forexop On the surface, the Ichimoku seems like a rather complicated charting tool. It is however fairly easy to use once you get to know it. Ichimoku is an all-in-one system that can be helpful when trying to figure out trending, reversals, support, resistance areas and volatility. One of the smart things about Ichimoku...