Top trading assistants
Fundamental analysis: in the footsteps of Warren Buffett.
Fundamental analysis "old school", the adherent of which is the world's largest and one of the most famous investors Warren Buffet. However, it is often not Buffet that follows the realities of the market, but the market, represented by large investors, follows Buffet's actions. The movement of currencies in the market is a reflection of constantly changing supply and demand. Therefore, the main task of fundamental analysis is to monitor and evaluate the political and economic situation in the countries whose currencies are traded by the trader. Experts do not advise to use only this method, especially for beginners, because of the complexity of interpretation of numerous information, as there are too many factors to consider. However, to facilitate labor-intensive work, you can use data from analytical sources. For example, Grand Capital blog daily publishes trading recommendations based on fundamental analysis. Japanese candlestick patterns
Japanese candlesticks are a universal instrument on all types of financial markets. They show the trading history with which traders build their trading strategies.
They highlight the so-called "candlestick patterns". They are a harbinger of a changing trend or vice versa, a signal for its further development.
Candlestick patterns can be bearish and bullish. The most frequent patterns are bull's absorption, bear's absorption, hammer, hanging star, morning star, evening star, rain, cloud lumen, dark cloud curtain. Each of them demonstrates the struggle between buyers and sellers. The trader's task is to determine the winner of the candlestick model on the chart and make the appropriate decision. For example, the "hung" pattern belongs to the group of models consisting of one candle and completes the uptrend by signaling its reversal. Professionals do not advise to build a strategy solely on candlestick patterns. According to statistics, only in half of cases they indicate the right direction. Therefore, it is better to combine candlesticks with technical analysis. Elder's Waves.
Elder Waves or "Elder Three Screens" are relevant in all markets. The method is based on the analysis of three charts of the selected for trading asset with different timeframes. The trader filters trading operations by the senior timeframe and identifies correct entrances by the junior one. This approach helps to obtain a large profit with the lowest risk. The system of "Elder's three screens" combines trend indicators and oscillators (from Latin Oscillo rocking.). This way a trader can get more reliable entry points and cut off false ones.
The founder of "Three Screens" Alexander Elder compared the market with the ocean, the waves of which form the tides (upward trend) and ebb (downward trend). The period of dominance on the market of an uptrend is the time of buying an asset. When a downtrend prevails this is the time of selling. A kind of market "calm" is the so-called "corridors" or flat. During this period it is better to refrain from trading according to the recommendations of the system author.
All the above mentioned market conditions should display the first screen. The second screen is used to determine the initial wave movement according to the current trend. In other words, it defines the moment when the correction ends and the next trend movement starts.
The third screen is used by the trader to accurately enter the deal with setting the minimum safety stop-loss. Three screens of Elder in a weekly, daily and four-hour timeframe
Larry Williams' Bar Analysis
The famous stock trader, born in 1942 in Montana, USA, Larry Williams is known for the large number of indicators he created.
Williams evaluated the market, turning the price display on charts into bars. Many market professionals use this method, although there is no significant difference between a "candle" and a bar. Any Japanese candlestick is based on a bar with four indicators bar opening price, closing price, bar high and bar low. To trade using the Williams method is to buy and sell assets at the price of a three-bar moving average minimum. To determine which trading points to open and close a position on, he developed his own theory of local highs and lows based on three bar patterns.
The local high is the bar with the highest high compared to the previous and next; the local low is the bar with the lowest low compared to two neighboring lows, respectively.