Foundations of Technical Analysis: Identifying Confluences & Opening Ranges
- Part 1: Introduction to Basic Trendline Analysis
See these tools & methodology used in practice, Join Michael for his Weekly Strategy Webinar on Monday mornings.
In this bi-weekly webinar series on the Foundations of Technical Analysis, we discuss the methodology of constructing a basic trade setup. In this session, we review how to use slope-lines and convergences in horizontal support / resistance to identify key reaction levels in price. We also disuscussed the basic concept of opening-ranges.
In this webinar, we dressed a EURUSD chart from scratch, working our way down from the weekly, to the daily and then to the 4hour chart. We went into depth on the use of opening ranges as a way of offering further conviction on our near-term directional bias. This study of price action can be utilized on multiple timeframes and can be a great addition to your trading strategy.
We also discussed how to identify areas of confluence support / resistance as key reaction points in price. These convergences of slope with moving averages, key highs/lows or major Fibonacci levels can often times offer great opportunities, as seen during today’s webinar.
A review of the latest EURUSD & USDCAD setups published earlier this week highlight live examples of how we utilities this type of analysis to translate an idea into an actionable trade.
- EUR/USD Rally Vulnerable Ahead of NFP- Pullback to Offer Opportunity
- USD/CAD Price Action Primed for NFP, Canada Employment
In future webinars we’ll be discussing how to integrate basic slope analysis with various overlay & momentum indicators, classic candlestick formations and proper risk management to create a more holistic trading approach. Next week, we’ll discuss the use of Fibonacci retracements & extensions. Click here to register free!
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---Written by Michael Boutros, Currency Strategist with DailyFX
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.