Technical Analysis of the Currency Market: Classic Techniques for Profiting from Market Swings and Trader Sentiment

Index

A

Appel, George, 87

Arithmetic scaling, 155–157

Ascending triangle, 128, 130–131

Aspray, Thomas, 87

AUD/JPY pair, 37, 38–39

AUD/USD pair, 35, 36

Average Directional Index (ADX)/Directional Movement Index (DMI), 71–72

B

Bar charts, 41–43

Base currency, 7

Bear flags, 123–127

Bearish candles chart, 44

Bearish engulfing patterns, 45–46

Bid/ask spread, 8–10

Bollinger bands, 72–77

scalping to trend with, 172–173

trend detection/exhaustion with, 162–164

trend trading with, 164–167, 170–172

volatility stop with, 167–170

Breakout patterns, in candlestick charts, 45–46

Buffett, Warren, 35

Bull flags, 123–128

Bullish candle chart, 44

Bullish engulfing patterns, 45–46

C

CAD/JPY pair, 37

Candlestick charts, 43–58

breakout patterns, 45–46

indecision patterns, 46–49

reversal patterns, 50–56

Carry trades, 13–15

Central banks, as FX traders, 5–6

CHF/JPY pair, 39

Cohen, Steve, 158

Commodity Channel Index (CCI), 91–96

Commodity currencies, 35–36

Confidence, in trading, 184

Corporations, as FX traders, 5

Countercurrency, 7

Crosses, 37–38

Currencies:

commodity, 35–36

major, 32–35

D

Dark Cloud Cover pattern, 49–50

Data display, 41–58

bar charts, 41–43

candlestick charts, 43–58

line charts, 41, 42

Dealer intervention, 9

Decentralization, of FX markets, 6–7

Demonstration trading accounts, evaluating of, 19–24

Dennis, Richard, 153

Descending triangle, 131–132

Diamond patterns, 135–137

Doji candles, 46–48

Double top and double bottom patterns, 114–117. See also Triple top and bottom patterns

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