Trading with Multiple Indicators

So far, we have introduced almost all of the most popular technical indicators; this article will group these indicators into four major categories and present possible strategies to profit from signals given by a combination of such indicators. Technical indicators can be defined as overlays on the chart that provide traders with additional information about … Read more

Weak US Manufacturing and Non-Manufacturing Data & Its Impact on the Market

Importance: The downward trend of the US ISM Non-Manufacturing data and continual contraction of the US manufacturing sector is vital in understanding how rising concerns about weak global growth and global trade tensions is impacting the US economy and by extension the labour market. Although recent US labour market figures showed unemployment rate reached new … Read more

Parabolic Stop and Reverse (Parabolic SAR)

Definition The Parabolic Stop and Reverse signal abbreviated as SAR, is a technical indicator used to predict short-term trend direction, potential reversals in price and provide signals for exit and entry points. On a chart, the indicator is represented by a series of dots, either above or below an asset’s price, depending on the direction … Read more

Average True Range

Definition of Average True Range (ATR) The average true range (ATR) is a technical analysis indicator that measures market volatility by decomposing the entire range of an asset price for that period. The true range indicator is originally designed for use with commodities markets but has since been applied to all types of securities. To … Read more

Fibonacci Retracement

What are Fibonacci Retracement? Fibonacci Retracement utilises Fibonacci sequences to identify potential reversal levels. In technical analysis, a Fibonacci Retracement is created by taking the two extreme points (major peak and trough) and dividing the distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8%, and 100%. Once these levels are identified, horizontal lines … Read more

Upcoming FOMC Rate Decision & Its Impact on the Market

The FOMC (Federal Open Market Committee) holds eight regular scheduled meetings during the year, as well as other meetings if needed. The upcoming 30-31 July meeting has already caused rising confusion in the wake of market-moving speech by one if its top officials. Hence, the communication challenge faced by the US central bank has raised … Read more

Ichimoku Kinko Hyo

The Ichimoku Kinko Hyo is a versatile technical indicator that is commonly used to gauge future price momentum and direction, along with future areas of support and resistance. This indicator is most commonly used on JPY (Japanese Yen) currency pairs. In Japanese, “ichimoku” translates to “one look,” or “glance” , “kinko” means “equilibrium” or” balance” … Read more

Average Directional Index

Definition of Average Directional Index (ADX) Traders use the average directional index (ADX) as a technical analysis indicator to determine the strength of a trend. The trend can be up or down, which can be represented by two accompanying indicators, known as the Negative Directional Indicator (-DI) and the Positive Directional Indicator (+DI) respectively. The … Read more

Bond Yield Curve

First and foremost, the bond yield curve has a close relationship with the term structure of interest rates, to be more specific, the yield curve in some sense indicates how interest rates vary over investment horizons. Additionally, it can also be a useful tool for interpreting the market expectation of interest rate. In terms of … Read more

Support and Resistance

Support and resistance are the most commonly used tool when undergoing technical analysis. Support levels and resistance levels are used by traders to refer to price levels on charts that tend to act as barriers, preventing the price of an asset from getting pushed in a certain direction. Support Support is a price level where … Read more