TA

• Market participants include individuals, corporations, governments, banks, brokers, dealers, and other financial institutions.
• The market is the place where buyers and sellers meet to trade goods or services at an agreed-upon price.
• Candlestick charts are used to visualize price movements over a specific period of time.
• Each candlestick on the chart represents a particular amount of price movement, and each candle has two parts - the body and the wick.
• The open, high, low, and close of the candle are all indicated by the corresponding letter in the candlestick's name.
• Candle analysis involves identifying trends, using support and resistance levels, and trading based on trend direction.
• Technical analysis involves identifying impulsive moves, pullbacks, and uptrends, and using support and resistance levels to make better trading decisions in a trending market.
• Support and resistance levels can be used to find entry points in trending markets, and a break and re-test strategy can be used to determine where the market is likely to breakout and reach a new high or low.
• The atr indicator is a tool for predicting the average movement of price over the last 14 candles, and can be used to help traders identify areas of value and trend in a market, as well as to set stops and targets.
• Moving averages can be used to help traders identify trends, set stop losses, and determine targets, and can also be used to help define trends in candlestick charts.
• The three most commonly-used moving averages are the 20-period moving average, the 50-period moving average, and the 200-period moving average, each providing areas of value depending on the market conditions at the time the moving average is used.
• The rsi indicator is also discussed.
• The 382 candle is a bullish candlestick pattern that indicates that buyers are in control of the market and that prices are likely to rise in the future, and the hammer and shooting star candles are also bullish patterns.
• The 38.2 candle is a common technical analysis pattern used to identify potential market reversals or trend continuation, with a long wick indicating that selling pressure is present and changes colors indicating that it is a bullish candle.
• If the candle is within the 38.2 retracement, it is a sign of a reversal, and if the candle is within the 20 period moving average, the market is in a uptrend, and the previous resistance level is likely to become support, then the candle is valid and can be used as an entry point into a long-term trend.
• The 38.2 candle is a technical analysis indicator that can be used for reversals and trend continuation, and is also a good entry point for trend continuation trades.
• Chart patterns, including double bottoms and double tops, have objective rules that must be met in order for the pattern to be considered valid, and the trader should wait for a pullback after the pattern is confirmed and then enter the market based on the level of support.
• Flag patterns take a few candles to set up, while ascending/descending wedges take between 20 and 50 candles.
• The pattern is identified by a level of resistance that the market is having trouble getting past, but at the same time, buyers are also interested in higher prices.
• When the market reaches this level of resistance, a breakout occurs, followed by a pullback.
• If buying pressure is detected, a trade may be placed.
• Bearish flag and ascending/descending wedge patterns are created by a level of support that has been hit multiple times, while bullish patterns are created by a level of resistance that has been hit only once.
• The next level of structure support or resistance can be determined by looking for a breakout of the level of resistance.
• When all conditions of structure trading are met, one way to enter is with a hammer candle, defined as a candle with the entire body above the 38.2 retracement, followed by a green candle.
• A shooting star candle, defined as a candle with the entire body below the 38.2 retracement, followed by a red candle, is another way to enter.
• Identify the counter trend level as the level below price.
• To determine the trend, determine the latest level that was broken, which is the trend continuation level.
• To trade at these levels, they must have either created a strong move out of price or been tested multiple times.
• The only two ways to consider a level as a strong level are if it caused a major move out of price or if it has been tested multiple times.
• Trend continuation levels are identified by ensuring that they have been tested multiple times or caused a major move out of price.
• The levels are accurate even if they are not the same exact levels that are picked out.
• The counter trend level is an area of price between 1.7410 and 1.7376.
• The subjectivity of identifying support and resistance is not a problem as long as the levels are tested multiple times or caused a major move out of price.
• The trend continuation level is an area of price between 1.7235 and 1.7185.
• To identify counter trend resistance, you need to understand how to identify an uptrend before that counter trend resistance level actually happens.
• As price pushes lower, these previous lows continue to act as resistance for a downtrend, becoming trend continuation resistance zones.
• Common mistakes when trading around support and resistance include having support and resistance as just a line on the chart, not having a consistent way to enter a trade inside of support and resistance zones, and not understanding how to identify trends.
• Counter trend support is when the price of an asset, such as the Aussie/New Zealand, pushes lower creating new lower lows, but then begins to push higher.
• The reasoning for this counter trend support was the buying pressure that built up in the area.
• Bullish examples of previous lows becoming resistance are common, but they should be seen as zones of support and resistance, not lines.