Introduction
Trend Follower is a trend following system. If you ever heard the saying Trend is your friend, this system will show you the mechanics behind these words. Its unique approach to the market will give you a great understanding of market movements and allow you to see that what happens is not random but an underlying order behind price movement. Through practicing these exact rules with which the system was designed, you will get a more clear picture of the market and begin to reap the financial rewards. Trend Follower is unique in that it doesn’t attempt to predict the future but rather a tool that helps you to recognize the current trend and lets you go with the current flow. Mastering the system will give you greater peace of mind because you won’t need to keep up with the economical events, trying to figure out the meaning of numbers, or opinions of experts. Unlike most other trading
systems Trend Follower does not depend on past performance and should work on every market. Its formulas are not based on pattern recognition and random selection of indicators, but rather a clean understanding and timing of the market.
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Technical analysis is research of market dynamics that is done mainly with the help of charts and with the purpose of forecasting future price development. Technical analysis comprises several approaches to the study of price movement which are interconnected in the framework of one harmonious theory. This type of analysis studies the price movement on the market by means of analyzing three market factors: price, volumes, and, in case of study of futures contracts’ market, of an open interest (number of open positions). Of these three factors the primary one for technical analysis is the prices, while the alterations in other factors are studies mainly in order to confirm the correctness of the identified price trend. This technical theory, just like any theory, has its core postulates.           Read more »

Think of prices for financial instruments as a result of a head-to-head battle between a bull (the buyer) and a bear (the seller). Bulls push prices higher, and bears lower them. The direction prices actually move shows who wins the battle.

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Breaking through support or resistance levels results in a change of traders’ expectations (which causes supply/demand lines to shift).

This type of a change is often abrupt and «news based». Such changes may have a certain trend. A trend represents a consistent change in prices. Trends differ from support/resistance levels in that trends represent change, whereas support/resistance levels represent barriers to change.

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Moving averages are one of the oldest and most popular technical analysis tools. A moving average is the average price of a financial instrument over a given time. When calculating a moving average, you specify the time span to calculate the average price. For example, it could be 25 days.

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In technical analysis, lines and various geometric figures to be plotted in price charts or in indicator charts are called line studies. Those include the Support/Resistance Lines and Trend Lines described above, along with: Read more »

An indicator is a result of mathematical calculation, based on prices and/or volume. The figures received are used for forecasting price changes. There is a vast number of elaborated technical indicators. Some of them are presented in MetaTrader 4 :  Read more »

Regardless of the “timeframes” of the data in your charts (i.e., hourly, daily, weekly, monthly, etc.), the basic principles of technical analysis endure. Opportunities exist in any time frame. But customized settings of the technical analysis tools are needed for each time period.

On the weekly chart, the scale interval on the time axis is one week. On the monthly chart, correspondingly, every bar shows price behavior for one complete month. It is obvious that in order to cover a longer period of time and to be able to analyze long-term trends, one has to compress the price behavior. A weekly chart, for example, can cover a period of five years and more, the monthly chart can cover twenty years or more. This is how the analyst manages to see far ahead of her-/himself and that is how s/he can assess the market in terms of the long-term opportunities, which are really valuable while conducting the technical analysis.           Read more »

A trading system (TS) is a set of instructions which advise opening or closing trading positions based on the results of technical analysis. A trading system allows to exclude randomness in the trading process. Strict adherence to the system permits to rule out the emotional factor in the trade. For this reason, one must follow all recommendations of the system strictly even if for all that a potentially profitable position will not be opened.  Read more »

Moving average is one of the most widely used TA indicators. Moving average is calculated by finding the average price of the trading instrument over a set number of periods. It is called a ‘moving” average because as the newest period is added, the oldest period is dropped. MA crossovers are used in many trading systems as buy or sell signals. Usually combinations of two or three MA intervals are used. Another popular way of observing buy and sell signals is by using single, longer term MA such as 20 day MA. Buy signals occur when the current price crosses MA from below to above. The sell signal occurs when current price crosses MA from above to below. Read more »