ARTICLE SYNOPSIS ...Forex Focus: Point & Figure For Forex by James Chen, CTA Here's an age-old charting technique that you can use effectively in the foreign exchange markets. To trade using point & figure charts is to trade based on pure price action. One of the best-kept secrets about this granddaddy of technical analysis charting methods lies in the fact that it is ideally suited to analyzing and trading the forex market. THE BASICS Point & figure (P&F) charts originated in the 19th century as an innovative method for graphically plotting price action in the financial markets. One of the unique aspects of ...
ARTICLE SYNOPSIS ...Forex Focus by James Chen Support & Resistance Precision In Forex Currency markets tend to follow support & resistance levels. Use those levels to identify entries and exits, and to apply risk management. Many foreign exchange traders rely on the accuracy of support & resistance levels so evident on currency price charts. Some of these traders will eschew the use of mathematically derived indicators or back-tested systems as primary trade decision tools, preferring instead to allow their manually drawn lines to dictate entries and exits. BACK TO BASICS There is much to be said for this back...