Fx-Technique » Fx Indicator

Dealing With Time and Price

cymoo — Fri, 08 Apr 2011 17:29:54 +0000

Time and price a depletion of market movement is one of the most used and recongnized sources in formulating direction in future market movement. Trend line terminology will show reoccurring market points of resistance and support as well as short term intermediate area’s of congestion and technical formations.

Flag Chart Formation Definition

cymoo — Mon, 21 Feb 2011 02:49:33 +0000

A flag chart formation occurs after a security experiences an impulsive up or down move. After such a strong run-up, the security will take a “breather” before continuing in the direction of the primary trend. This breather takes place in the form of a rectangular structure, hence the term “flag”, while the impulsive move or “pole” completes the formation. While inside the flag, there are a number of minor price fluctuations that occur on light volume. After this quiet period, the security will eventually erupt out of this consolidation zone with an increase in price and volume. The breakout from the flag will often times be equivalent to the impulsive move prior to entering the rectangular structure. The flag chart pattern formation is one of the more reliable continuation patterns.

Flag Pattern Charting Example

Flag Chart Pattern

Graphical Fibonacci Studies

cymoo — Sun, 06 Feb 2011 08:29:12 +0000

Graphical Fibonacci Studies are used to in technical analysis as indicators of cycles and of support and resistance line.
There are several Fibonacci Studies:

Fibonacci Time Zones,

Arcs,

Fans,

Retracements,

Fibo Channel

Fibo Expansion

All of these studies are based on an interesting discovering made by an Italian mathematician Leonardo Fibonacci, who lived in a 12th century.
While studying the Egyptian pyramids he established a numerical pattern.

Fibonacci Numbers are a numerical sequence, in which subsequent number is equal to the sum of the previous two.

Here is a sample:
1,1,2,3,5,8,13,21,34,55,89,144,233,377 etc.

The Fibonacci numbers have a lot of mysterious properties.

For example, any Fibonacci Number approximates the product of the previous number multiplied by 1.618, or the product of the subsequent number multiplied by 0.618.

The Fibonacci studies allow us to create on a price chart several lines that stand apart from each other, a distance equal to the Fibonacci numbers.

For instance, Fibonacci Times Zones represent vertical lines spaced at intervals of 1,2,3,5,8,13 etc.
The interpretation of Fibonacci Studies in technical analysis is based on two assumptions.

One. The changes in trend occur regularly on the borders of a Fibonacci lines.

Two. The Fibonacci lines also serve as levels of support and resistance.