• Latest
  • All
  • News
  • Business

These Are the 6 Best Indicators You Should Know

Mar 15, 2018
What Is a PDF Virus?

What Is a PDF Virus?

May 17, 2022
The Ultimate Guide to TV Antenna Installation

The Ultimate Guide to TV Antenna Installation

May 17, 2022
How to create multiple email filters in ProtonMail free plan

How to create multiple email filters in ProtonMail free plan

May 14, 2022
6 Benefits of Outsourcing Your Business’s Design and Development Projects

6 Benefits of Outsourcing Your Business’s Design and Development Projects

May 13, 2022
How IoT, Autonomous Cars and Smart Cities Will Develop

How IoT, Autonomous Cars and Smart Cities Will Develop

May 10, 2022
Apple Virus Guide: How to Get Rid of a Virus on Your iPhone

How to transfer photos from iPhone to Computer

May 10, 2022
How Does Data Analytics Improve Security Systems?

How Does Data Analytics Improve Security Systems?

May 4, 2022
Discovery Phase For Software Development: How Much Does It Cost?

Discovery Phase For Software Development: How Much Does It Cost?

May 4, 2022
Smart Contract Programming Languages in Blockchain

Smart Contract Programming Languages in Blockchain

May 4, 2022
How Does an Elasticsearch Application Work?

How Does an Elasticsearch Application Work?

May 3, 2022
How To Take Care of Files on Your Computer

The Many Benefits That External IT Support Provides For All Businesses.

May 2, 2022
In Order To Avoid Business Downtime – You Require IT Consulting

In Order To Avoid Business Downtime – You Require IT Consulting

May 2, 2022
  • Guest Posts
  • Advertise
  • Contact Us
  • Privacy Policy
Wednesday, May 18, 2022
Tech Featured
  • Home
  • Latest Tech
  • Apple
  • How to’s
  • Apps
  • Automobiles
  • Gadgets
  • Gaming
  • Reviews
  • Tech Tips
No Result
View All Result
Tech Featured
No Result
View All Result
Home News

These Are the 6 Best Indicators You Should Know

by techfeatured
Mar 15, 2018
in News
0
0
SHARES
5
VIEWS
Share on FacebookShare on Twitter

Every Forex trader knows that you must supplement the information in your charts with a number of technical indicators. Among the indicators commonly used are strength indicators, volatility indicators, trend indicators and cycle indicators. These indicators not only help us determine in which the market is moving, but also when a trend is about to end and we should either exit the trade or, with a good signal, reverse the trade.

The following 6 indicators are the most commonly used among Forex traders:

  • Stochastic oscillator – The stochastic oscillator helps a trader determine the strength or weakness of a currency by comparing the closing price to a price range over a period of time. When the trader identifies a high stochastic that said currency may be overbought and you should go short or bearish. Conversely, a low stochastic indicates that a currency may be oversold and you should go bullish or long.
  • Bollinger Bands – Bollinger bands contain the majority of a currency’s price between the bands it displays. Each band has three lines – the lower and upper lines show the price movement and the middle line shows the average price of the currency. When the market is experiencing high volatility, the gap between the lower and upper bands will increase. In you candlestick or bar chart, the currency is considered overbought if a bar/candlestick touches the upper band and oversold if bar/candlestick touches the lower band.
  • Average Directional Movement (ADX) – ADX is used to determine whether a currency is entering into a new uptrend or a downstrend. The ADX is also used to determine how strong the trend is.
  • Relative Strength Indicator (RSI) – RSI uses a 0 to 100 scale to indicate the highest and lowest prices over a period of time. When prices of a currency rise over 70 the currency is presumed to be overbought. On the other hand, a price below 30 would most likely indicate that a currency is oversold.
  • Simple Moving Average (SMA) – The SMA is the average currency price for a given period of time compared to other prices during the same time periods. To illustrate how SMA works, the closing prices over a 7 day period will have a SMA equal to the addition of the previous 7 closing currency prices divided by 7.
  • Moving Average Convergence/Divergence (MACD) – MACD is another oscillator that shows momentum of a currency as it relates to the two moving averages. As we discussed in previous articles, when the MACD lines cross, that crossing may indicate the start of an uptrend or a downtrend.
Tags: 6Indicators
ShareTweet

For any queries, you can reach us at [email protected]

Latest Posts

  • What Is a PDF Virus?
  • The Ultimate Guide to TV Antenna Installation
  • How to create multiple email filters in ProtonMail free plan
  • 6 Benefits of Outsourcing Your Business’s Design and Development Projects
  • How IoT, Autonomous Cars and Smart Cities Will Develop
Tech Featured

© 2022. All Rights Reserved.

Navigate Site

  • Guest Posts
  • Advertise
  • Contact Us
  • Privacy Policy

Follow Us

No Result
View All Result
  • Home
  • Latest Tech
  • Apple
  • How to’s
  • Apps
  • Automobiles
  • Gadgets
  • Gaming
  • Reviews
  • Tech Tips

© 2022. All Rights Reserved.