Trading articles

Key concepts part 6

Schluesselkonzepte

In the "Key concepts" section, we explain the basic concepts of trading that are necessary, above all, for understanding our strategy articles. The aim is to introduce beginners to complex strategies and at the same time give advanced traders the opportunity to refresh their basic knowledge.


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Wave ATR

It is clear to traders and investors that the markets are moving. But the intensity of this movement is often a headache for market participants. The volatility of a market is a central element in the analysis. It provides information about how strong or weak the markets are moving and is therefore very suitable for placing stops correctly. A special type of volatility calculation is the so-called "Average True Range", or ATR for short.

Key concepts part 5

Schluesselkonzepte

In the "Key concepts" section, we explain the basic concepts of trading that are necessary, above all, for understanding our strategy articles. The aim is to introduce beginners to complex strategies and at the same time give advanced traders the opportunity to refresh their basic knowledge.

TA on FX

Was uns die Charts verraten

Most of the tools provided by Technical Analysis (TA) can be used well in foreign exchange trading. Classic chart formations such as trend channels or resistance and support lines can be used as well as advanced trend detection techniques, indicators and oscillators, and candlestick formations.

Key concepts part 4

Schluesselkonzepte

In the "Key Concepts" section, we explain basic trading concepts that are necessary, above all, for understanding our strategy articles. The aim is to introduce beginners to complex strategies and at the same time give advanced traders the opportunity to refresh their basic knowledge.

Key concepts part 3

Schluesselkonzepte

In the "Key Concepts" section, we explain basic trading concepts that are necessary, in the first place, for understanding our strategy articles. The aim is to introduce beginners to complex strategies and at the same time give advanced traders the opportunity to refresh their basic knowledge.

Heikin Ashi - balancing on one foot

Heikin Ashi

Most often, profits (but also losses if there are no stops) are made when there is a trend-oriented movement in a market. The correct assessment of the probable trend can therefore be extremely helpful and profitable. The Heikin Ashi technique combines the advantage of charting using Japanese candle charts with an improved representation of the prevailing trend direction.

Chartformations (part 1)

Chartformationen

Here we have an article from the series "Chartformations". So-called "chart formations" occur in all markets and on all time levels and should belong to the toolbox of every trader. Today we present the two best-known chart patterns that indicate a trend reversal: the shoulder-head-shoulder and double top and double bottom formation.

Trading naked?!

naked trading

The beauty of trading is that you can theoretically operate it from anywhere in the world - at your desk, in your living room or in your holiday paradise. Nobody cares whether you sit in a suit and tie in front of the computer or in a jogging or swimming trunk. And the trading platform can be as casual as the screen. Have you ever tried it naked?

Key concepts part 2

Key concepts

In the section "Key concepts" we explain basic concepts of trading, which are necessary for the understanding of our strategy articles. The aim is to introduce beginners to complex strategies and at the same time give advanced traders the opportunity to refresh their basic knowledge.

Orderflow trading

waterfall

Orderflow trading has been enormously hyped in the English-speaking trading scene in recent years, while it is less well known in German-speaking countries and is traded by some as an "insider tip" or even as the "only true trading". This does not mean, however, that one can find the proverbial Holy Grail here.

In this article we look at what Orderflow Trading really is about.


Tip

Key concepts part 1

In the "Key concepts" section, we explain the basic concepts of trading that are necessary, above all, for understanding our strategy articles. The aim is to introduce beginners to complex strategies and at the same time give advanced traders the opportunity to refresh their basic knowledge.

Bollinger Bands

Heikin Ashi versus Candlesticks

The regular ups and downs at the markets can become a real test for the nerves of many traders. Whether a position is currently held or the market is only observed - the back and forth regularly leaves plenty of room for personal interpretation. Although a trend in the market is often recognizable, there are always phases in which false signals can mislead a trader and he runs the risk of prematurely taking a position or dissolving it. In these moments it is difficult to stay calm and keep track.

Heikin-Ashi: A variation of the Candlesticks

Aug '19: Fake trend reversal

In order to consider a "fake" trend reversal, the following criteria must be met:

  • the market is in a prolonged trend.
  • the market reverses trend.
  • this trend reversal is not strong.
  • the market moves sideways for a moment.
  • the market turns back in the direction of the initial trend.

To obtain a trading signal, two technical analysis indicators have been combined: a crossing moving average and the smoothed Relative Strength Index indicator. The RSI is an oscillator which indicates if a market is overbought or oversold.

Aug '19: Three Line Break (TLB) - Version 2

Multiple trend reversal signals based on TLB bands

Both this multi-signal and the mono-signal tool are based on trend reversals identified in a very interesting chart type called Three Line Break (TLB) chart.

The TLB chart is interesting because it visualizes a trend reversal. However, the TLB chart is difficult to interpret given the fact that it has a variable time axis. The strength of this signal lies in the fact that it visualizes this complicated yet useful chart as a simple band. This green-red band is visible in the main chart. 

Aug '19: Three Line Break (TLB) - Version 1

Trend reversal based on TLB bands

This signal takes position in the early stages of a potential trend reversal. The trend reversal is identified by a very interesting chart type called Three Line Break (TLB) chart.

The TLB chart is interesting because it visualizes a trend reversal. However, the TLB chart is difficult to interpret given the fact that it has a variable time axis. The strength of this signal lies in the fact that it visualizes this complicated yet useful chart as a simple band. This green-red band is visible in the main chart.

Volume indicators - Short term trade against the masses

Often the market is showing strong volatility when corporate news or macroeconomic data is released. Since almost all traders interested in a certain underlying value follow the corresponding news and many of these traders actively trade the events, volumes and emotions for these events increase particularly strongly. "No price in the world will always rise or fall, the reaction is exaggerated," could be their opinion about the sometimes immense moves.

Jul '19: Gap close

This signal occurs after an intraday gap has been closed. The assumption is that the trend is back on track after the gap closes.

A gap is defined by comparing the open price of the current candle and the low price (high price in the case of a gap up) of one or more previous candles.

This example is showing a Gap down, because the close price of the previous (green) candle is considerably higher than the open price of the current (red) candle.

Jul '19: Bollinger Volatility explosion

The creator of the Bollinger Bands, John Bollinger, states that periods of low volatility are often followed by periods of high volatility. When volatility increases, Bollinger Bands widen. John Bollinger further states that an "explosion" in volatility offers an opportunity for traders.

This trading signal detects when a volatility explosion based on the Bollinger Bands occurs. In order to measure and visualize the explosion, NanoTrader displays the volatility in percent in a chart below the main chart. This indicator is called the Bollinger Bands Volatility Oscillator.

Jun '19: Inside Bar Break-out

The "inside bar" candlestick pattern is a chart pattern which consists of a series of candles that are all closing inside the High-/Low range of the first candle of the series, often referred as the outside bar. This means that the close price of the current candle is both lower than the high of the first candle and higher than the low of the first candle of the pattern.

Jun '19: Heikin Ashi reversal

This signal takes positions in the early stages of a potential trend reversal. It is based on the Heikin Ashi trend indicator. The visual representation of the Heikin Ashi indicator resembles a classic candlestick chart. As a consequence many trading platforms classify this indicator not in the list of indicators but in the list of available chart types.

The trend indicator Heikin Ashi visually resembles a candlestick chart. Each Heikin Ashi candle, however, is calculated on the basis of the previous Heikin Ashi candle and the current classic candle. 

Jun '19: Hammerblast

The Hammer Blast pattern occurs at the end of a down-trend. It often reflects a change in the sentiment of the market. The pattern works well for market indices (DAX, DOW…) and individual stocks.

The Hammer candlestick pattern consists of four candles. The two first candles need to be bearish candles. The third candle needs to be a Hammer candle. The fourth candle must be a bullish candle. The open of the fourth candle must be above the close of the Hammer candle.