Forex Shockwave Analysis not only examines the shockwave itself (which occasionally lasts less than a minute or two after the news release) but also investigates the reactive phase that immediately follows the shockwave. This is in a very broad sense the economic equivalent to Newton’s third law of motion: “For every action, there is an equal and opposite reaction.” Numerous analytical tools required to unveil the mysteries of Forex shockwaves are also explained in this book. Some are old techniques with new variations (such as adjustable-range studies), and others are relative newcomers to the arena of technical analysis (such as activity, inertia, composite charting, and Forex wave theory).
There are seven major divisions within this book. PART 1: The subject of this book is shockwave analysis, which is a branch of technical analysis. Why, then, include a section on fundamental analysis? Simple. Fundamental economic factors do influence currency prices, and even though they may not affect price fluctuations directly at the tick level, it is always expedient for technical analysts to be aware of the forces that can adversely influence technical forecasts.
PART 2: This section examines price fluctuations at the very lowest possible level, the electronic transaction level. Order flow not only affects price movements but also liquidity, volatility, range of trading, and transaction costs. Economic calendars for the most significant news releases are also presented in this section to assist speculators in scheduling their daily and hourly trading sessions.
PART 3: Composite charts and diagnoses based on activity, range, and their interaction are explored in this section. The study of both activity and range is crucial to uncovering the semicryptic forces behind spot currency shockwaves. PART 4: Wave analysis of economic cycles began in earnest during the 1930s and continues to evolve even today. An innovative addition to technical analysis called Forex wave theory is reviewed in this section. Wave relationships, cycle nomenclature, and channel lines are examined in detail.
PART 5: Traditionally, the most significant news releases have occurred at 8:30 a.m. ET on Fridays. Fifteen practical studies from January 6, 2006 through April 14, 2006 are presented as OHLC vertical bar charts and continuous tick charts. These are accompanied by corresponding statistical analysis for each chart. PART 6: In this section, the swing reversal algorithm essential to reversal charting is applied to the raw data presented in Part 5. This assists traders in identifying recurring shockwave patterns and provides insight into determining market entry and exit timing.
- Fundamental Studies
- Exchange Rate Determinants
- Activity and Range
- Forex Wave Theory
- Shockwave Raw Data
- Shockwave Swing Data
Forex Shockwave Analysis By James L. Bickford pdf