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Screenshot of a breaking news alert e-mail from Q2 2017
Exante, a multi asset broker headquartered in Malta where it holds a Category 2 Investment Services License issued by the Malta Financial Services Authority (MFSA) is announcing they have integrated new charting tools within their proprietary platform for those who trade using technical analysis.
Below you can see in action and read about the four new technical analysis tools added this week.
(1) Ichimoko (also known as Ichimoko cloud or Ichimoku Kinko Hyo) – a financial indicator that defines support and resistance, identifies trend direction, gauges momentum and provides trading signals. Ichimoku Kinko Hyo is translated from Japanese as “one look equilibrium chart”. While it may look complicated from the first glance, it is a very straightforward and practically applicable tool.
The indicator consists of five plots each representing a certain value with respect to prices. For a time interval of one day those plots reflect:
- Conversion line – the midpoint of the 9 day high-low range
- Base Line – the midpoint of 26 day high-low range
- Lagging Line – close price 26 days behind the current price
- Lead 1 – the midpoint between the Conversion Line and the Base Line.
- Lead 2 – the midpoint of the 52 day high-low range.
The inputs for plots can be adjusted:
(2) Fibionacci Retracement – the potential retracement of a financial asset’s original move in price. Fibonacci retracements use horizontal lines to indicate areas of support or resistance at the key Fibonacci levels before it continues in the original direction. These levels are created by drawing a trendline between two extreme points and then dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%. The tool is based on the idea that markets will retrace a predictable portion of a move, after which they will continue to move in the original direction.
(3) Fibionacci fan. The technique that is used for constructing this drawing tool is similar to the one that applies to the Fibionacci Retracement – a trend line is drawn between two extreme points. Afterwards, an “invisible” vertical line is automatically drawn through the second extreme point. Following this, three trend lines intersecting this invisible vertical line at Fibonacci levels of 38.2, 50, and 61.8 percent are drawn from the first extreme point.
(4) Gann fan – type of technical analysis based on the concept that the market is geometric and cyclical in nature. To create a Gann Fan the middle line of time relative to price is drawn through two selected points. The first point is the one from which a series of angled lines extends. The second point is drawn to the right of the first and determines the rate of equivalence between time and price. The middle line can be of any angle and in case it has a 45-degree angle, it is also known as the 1×1 price/timeline. This is the price unit that equals to the time unit, so price and time are in perfect balance.
All of the aforementioned indicators have been automatically added to Exante’s trading platform and are ready to be used for your technical analysis right away.
To view the new tools on Exante’s website, click here.