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• What's Your Trading Price? by Alexander Sabodin

  ARTICLE SYNOPSIS ...What's Your Trading Price? by Alexander Sabodin The most important element of a trading system is managing risk. Here's how you can understand the risks of the forex market and other financial markets. Novice traders tend to think of trading as a unique opportunity to make a large amount of money. They slip on their rose-colored glasses and envision profits that will enable them to quit their current jobs, let them travel all over the world, and work only when they feel like it. Immersed in these rainbow thoughts, they open trading accounts, begin trading, and suddenly find themselves faced ...

AUTHOR: Alexander SabodinDATE: JAN 2010SUBJECT: Money Management

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• Tops And Bottoms by Alexander Sabodin

  ARTICLE SYNOPSIS ...Tops And Bottoms by Alexander Sabodin How do you know if the market has formed a top or a bottom? Here we look at the double-top and double-bottom patterns that occur frequently in the markets. by Alexander Sabodin When head & shoulders, double-top/bottom, and triple-top/bottom patterns are discussed, you'll find that they are referred to as trend reversal patterns. A triple top or bottom is rarer but is really just a version of the head & shoulders pattern. The main difference between the two is that all three peaks (or three troughs) of a triple top or bottom are located at almost the sa...

AUTHOR: Alexander SabodinDATE: SEP 2009SUBJECT: Chart Patterns

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• The Thorn At The Bottom by Alexander Sabodin

  ARTICLE SYNOPSIS ...The Thorn At The Bottom by Alexander Sabodin Here's a reversal pattern that occurs frequently but is difficult to discern during its formation. The thorn pattern is encountered quite frequently, but it is difficult to discern while it is being formed. Unlike other reversal models, which reflect gradual changes in trend dynamics, the thorn is a sharp jerk of the price in a given direction, immediately followed by a jerk in the opposite direction without any pause. Thorns often appear in low-liquid markets or after a news release. The reason behind such a situation can be attributed to the...

AUTHOR: Alexander SabodinDATE: OCT 2009SUBJECT: Chart Patterns

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• Continuation Price Patterns by Alexander Sabodin

  ARTICLE SYNOPSIS ...Continuation Price Patterns by Alexander Sabodin Take a look at some of the more common continuation patterns that you find on charts. Like reversal models (or patterns), continuation models are formed during periods of market instability. These appear when bullish and bearish forces are about equal. As a result, price stops moving in the direction of the trend and starts to fluctuate within a range. The appearance of continuation models usually indicates that the period of price standstill that you see on a chart is nothing more than a pause in the development of the prevailing trend. The ...

AUTHOR: Alexander SabodinDATE: NOV 2009SUBJECT: Chart Patterns

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• The Trend Is Your Friend by Alexander Sabodin

  ARTICLE SYNOPSIS ...The Trend Is Your Friend by Alexander Sabodin In this, the first part of a price model series, we look at trends. The fundamentals of technical analysis have been discussed to great lengths in the past. This includes topics such as support, resistance, trendlines, and channel lines. Now we can move one step forward and begin to study the graphic models of these different types of charting tools. One of the tenets of technical analysis is that price movement is subject to trends. One glance at a price graph will reveal its distinguishing feature: Price is always moving. This movement gives...

AUTHOR: Alexander SabodinDATE: JUL 2009SUBJECT: Forex Focus

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• Head & Shoulders by Alexander Sabodin

  ARTICLE SYNOPSIS ...Head & Shoulders by Alexander Sabodin Here's a look at a familiar reversal pattern, the head & shoulders pattern. IN this installment of the price model series, we will look at a well-known trend reversal model, the head & shoulders pattern. In part 1 last issue, I explained that for a price model to form, a previous trend needs to exist. The condition for the formation of a head & shoulders pattern is an ascending movement on a price chart, when every rise and fall is higher than the previous one. In Figure 1, you can see that at a certain stage in its development, the trend has accelerated...

AUTHOR: Alexander SabodinDATE: AUG 2009SUBJECT: Chart Patterns

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• Fibonacci Tools by Alexander Sabodin

  ARTICLE SYNOPSIS ...Fibonacci Tools by Alexander Sabondin Here's a look at the numbers behind the Fibonacci sequence and how it can be applied to your charts. The sequence of the Fibonacci numbers is considered to have been discovered by Leo-nardo of Pisa, better known as "Fibonacci," a 13th-century Italian mathematician. ("Fibonacci" is an abbreviation of filius Bonacci; filius is Latin for "son of.") In the early 1200s, after traveling through parts of the Middle East and studying with Arab mathematicians, Fibonacci published his book Liber Abaci, or "Book of Calculation," which introduced to the West somethi...

AUTHOR: Alexander SabodinDATE: APR 2009SUBJECT: Charting

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• Forex Focus: Allied Currencies by Alexander Sabodin

  ARTICLE SYNOPSIS ...Forex Focus: Allied Currencies by Alexander Sabodin When trading, who or what can be your ally? Working in the financial markets as a trader can be fascinating, considering it gives you the opportunity to earn money and do so independently. You can trade from anywhere in the world with the help of a computer and the Internet. But any medal has its reverse. Such types of jobs come with their fair share of risks. First of all, there is the danger of losing money. Second, the responsibility of making the buying and selling decisions is entirely on your shoulders; you can't depend on anybody els...

AUTHOR: Alexander SabodinDATE: MAY 2008SUBJECT: Forex Focus

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• Forex Focus: An MACD Trading System by Alexander Sabodin

  ARTICLE SYNOPSIS ...Forex Focus: An MACD Trading System by Alexander Sabodin This simple trading system was applied successfully to forex pairs using the moving average convergence/divergence. See if it'll work for you. Today, we see advertisements of different automatic trading systems at numerous websites and forums. If we took those ads seriously, all we would have to do is click the mouse and money would pour into our pockets. Not only that, such black boxes usually don't come cheap. Keeping all that in mind, let's try to create our own trading system. As long as you don't lay claim to the holy grail, a tra...

AUTHOR: Alexander SabodinDATE: MAR 2008SUBJECT: Forex Focus

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• Forex Focus: The Alligator Indicator by Alexander Sabodin

  ARTICLE SYNOPSIS ...Forex Focus: The Alligator Indicator by Alexander Sabodin Here's a trading system you can apply to trending markets such as the currencies. There is a moving average?based trading system that I have found works best in trending markets, with its main instrument the alligator indicator. The alligator was first described by Bill Williams in his book New Trading Dimensions. Some software packages include the alligator indicator, but if it's not available, all you have to do is take three smoothed moving averages using 13, eight, and five periods and shift them by eight, five, and three bars int...

AUTHOR: Alexander SabodinDATE: JAN 2008SUBJECT: Forex Focus

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Forex Focus: The Intraday Trade by Alexander Sabodin

AUTHOR: Alexander SabodinDATE: DEC 2008SUBJECT: Forex Focus

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Forex Focus: Fishing For Trading Systems

AUTHOR: Alexander SabodinDATE: AUG 2008SUBJECT: Forex Focus