Module 4. Charting Tools

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There are many tools that have been created to help traders develop their strategies. In this section we'll go on to concentrate on probably the most widely used.  First we'll look at The Fibonacci Retracement & Extension, commonly known as “The Fib”.  This tool is useful for picking entry and exit points that form naturally in the market.  Then we'll look at Elliot Wave Theory, which has close links to Fibonacci and is used to analyze financial market cycles and forecast trends by identifying extremes in investor psychology and other collective factors.  Pivot points are useful for day traders as they gauge market sentiment on the future direction of the market, so we'll look at these important levels and find out how to calculate them, before utilising pivots in an actual market environment.

We'll go on to look at retracement or reversal - a checklist; before looking at charting software & the traders tool box allowing traders to do back testing & identify trends amongst other things. These charting tools are primarily used to identify strategic places for transactions to be placed, reversals, support, resistance, stop/loss positions and price targeting.

Contents

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There are many tools that have been created to help traders develop their strategies. In this section we'll go on to concentrate on probably the most widely used.  First we'll look at The Fibonacci Retracement & Extension, commonly known as “The Fib”.  This tool is useful for picking entry and exit points that form naturally in the market.  Then we'll look at Elliot Wave Theory, which has close links to Fibonacci and is used to analyze financial market cycles and forecast trends by identifying extremes in investor psychology and other collective factors.  Pivot points are useful for day traders as they gauge market sentiment on the future direction of the market, so we'll look at these important levels and find out how to calculate them, before utilising pivots in an actual market environment.

We'll go on to look at retracement or reversal - a checklist; before looking at charting software & the traders tool box allowing traders to do back testing & identify trends amongst other things. These charting tools are primarily used to identify strategic places for transactions to be placed, reversals, support, resistance, stop/loss positions and price targeting.

Contents

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