Bulls and Bears

What are the Bulls and Bears in Forex? Often traders characterise trends as bullish or bearish, although there isn’t much correlation between the two. The term bullish represents an upward trend, while bearish represents a downward trend. These jargons are often used in technical commentaries, phrases like bullish sentiment, bearish reversal, allows ease of communication … Read more

Triangles

A triangle is a chart pattern formed by drawing trendlines on a converging price range. There are three different types of triangle patterns, ascending, descending and symmetrical. Triangles are very useful to determine continuation/reversal trends. Ascending triangle An ascending triangle is a breakout pattern that forms when the price breaches the upper horizontal trendline. The upper trendline … Read more

Bollinger Bands

Bollinger bands are a technical analysis indicator with a set of lines plotted two standard deviations above and below the simple moving average (SMA). The band can be changed by adjusting the SMA settings to a different timeframe, the most common setting is the 20 day SMA setting. However, it is important to note that Bollinger Bands should not … Read more

RSI, Stochastic and Stochastic RSI

RSI: Overview The Relative Strength Index (RSI) is a momentum based oscillator which measures both the speed (Velocity) and the change (Magnitude) of directional price movements. Momentum based oscillators essentially measure the level by which a security’s price has changed over a set period of time within a set of parameters The RSI is one … Read more

Technical Analysis: Moving Averages

Introduction Moving average is a very popular indicator used in technical analysis. It is considered as a lagging indicator due to the nature of it using previous price action to provide an average price even when there are large short-term price fluctuations. There are two types of moving average indicators: SMA (simple moving average) and … Read more

Technical Analysis: Bearish Diamond Chart Formation

Introduction A diamond chart (or diamond top) formation is a bearish chart pattern which occurs rarely at the top of considerable uptrends. It is a variation of a head-to-shoulders pattern, so investors commonly mistake every heads and shoulders as a diamond formation. The diamond top signals an impending fall, and can be applied to any … Read more

Technical Analysis: Head-and-Shoulders Reversal

Introduction A head-and-shoulders (H&S) formation is a chart pattern that indicates a trend reversal. It can occur at the top of an uptrend (i.e. H&S top) or the bottom of a downtrend (i.e. H&S bottom). It is important for one to keep in mind that a trend reversal must has something to reverse, which means … Read more

2019 Bond Rally and the Health of the Global Economy

With global economic growth already showing signs of slowdown, the correlation between growth fears and bond prices are important indicators of economic outlook. If the market turns bullish or bearish, then the probability of central banks cutting interest rates will have an enormous impact on currencies. When investors are pessimistic about economic growth and thereby … Read more

Technical Analysis: How to Read the MACD Indicator

In this article: MACD and Its Components Two Simple Ways of Using MACD MACD Continuation Signals MACD Histogram MACD Divergence MACD and Its Components The Moving Average Convergence/Divergence (MACD; pronounced “Mac-Dee”) is a trend-following momentum indicator that shows the relationship between two Exponential Moving Averages (EMAs) of the price of an underlying security. It is … Read more

Metcalfe’s Law and Bitcoin

http://www.unswforex.com/metcalfes-law-and-bitcoin/

What is Metcalfe’s law? Metcalfe’s law states that the bigger the network of users, the greater the network’s value becomes. More specifically, it is proportional to the square of the number of connected users in the system. (n2). To illustrate this, we can use the example of fax machines. A single fax machine is useless, … Read more