Charting

More FAQ links

What charts do I use and why?

Candle charts – they show a more complete picture of how the price action is forming and as such any analysis is more accurate

How far through a trend line does the market have to break before it is considered broken?

It depends on the user's risk profile - ideally you would want a break and close below the trend line but I would only trade at least a 3% break through for something like an index such as the S&P500. This percentage will vary from market to market. 3% on £/US$ is too big a percentage – look for something like 50 pips here but always have a stop loss in place in case it goes wrong.

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