Introducing Fibonacci Retracements

Who was Fibonacci? Leonardo Pisano Bigollo better known as Leonardo Fibonacci was an Italian mathematician. Fibonacci is often considered to have been the most talented mathematician of the middle ages and is best known for a number sequence named after him.  The number sequence is begins with 0 followed by 1 and then continues by adding 0+1 to derive; 1 the third number in the sequence.   The sequence then continues by adding the second and third number together getting 2. The sequen...
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What is Technical Analysis?

Technical analysis is the idea that traders can look at historical price movements and us this data to work out current market conditions and potentially predict future price movements. Many proponents of technical analysis claim that all current market information is reflected in the current price and historical prices. If all market information is contained within current and historical price action, then traders would have all the information they need readily available to them.Technical ...
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Introducing the Average Directional Index (ADX)

The Average Directional Index (ADX), as well as the related Minus (-DI) and Positive (+DI) Directional Indicator are a set of directional movement indicators that are part of a trading system designed by Welles Wilder. The Average Directional Index was designed by Wilder with commodities and currencies in mind. But the indicator can be applied to a range of other financial instruments. The ADX measures trend strength, but not does not measure trend direction. The other two indicators mention...
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Introducing Parabolic SAR

The parabolic SAR, was first developed by Welles Wilder is price-and-time based trading system. Wilder originally called the system he developed the 'Parabolic Time/Price System'. The SAR in the name stands for 'Stop and Reserve', which is the indicator used in system. The indicator falls below price action when prices are rising and rises above price action when prices are falling. This is where the 'SAR' comes in, the indicator stops and reserves when price trends reserve and break through...
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Introducing the Commodity Channel Index (CCI)

The Commodity Channel Index, is a technical indicator which was developed by Donald Lambert and first featured in Commodities magazine during 1980. The Commodity Channel Index or CCI for short, is a very versatile indicator that can be used to both identify a new trend or warn a trader of extreme trading conditions. The CCI was originally developed in order to identify cyclical turns in commodities, but it was soon realized that the indicator could be applied to a far broader range of securi...
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Introducing the Williams Percent Range (%R)

Developed by successful commodity trader Larry R. Williams, the Williams Percentage range or %R is a technical indicator which is the inverse of the fast Stochastic Oscillator. The Williams Percentage range measures the current close in relation to the highest high of the selected period. This is to be contrasted with the standard Stochastic oscillator which gives a gauge of the current close in relation to the lowest low of the selected period. This means that the fast Stochastic oscillator...
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Introducing Stochastic Oscillators

In mathematics the term stochastic signifies any process involving a randomly determined sequences of observations, each of which is considered a sample of one element from a probability distribution. However, in the world of technical trading the term is used describe an indicator which compares the most recent close with the highest high and lowest low over a predetermined period of time.The Stochastic Oscillator was developed by the late George C. Lane, who developed the indicator dur...
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Introducing Elliot Waves

R. N. Elliot Ralph Nelson Elliot (1871-1948), the creator of Elliot Waves had a successful career as financial consultant to a number of railroad companies. A sector which was undergoing a resurgence during his early professional career, considered an expert in business planning Elliot's services were in high demand. Which led to the US government sending Elliot to Nicaragua as an economic consultant where he was in part responsible for reorganizing the country's finances. I...
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