Category: Indicators

45 posts

Top 10 Forex Indicators That Every Trader Needs

Indicators have long been introduced to the trading systems of many traders. As a minimum, they are of good help in chart analysis, as a maximum, they are the base of the whole trading system. Algorithmic trading, which means automatizing the work and creating trading robots, is also mostly based on the signals of various indicators.

Momentum: Efficient Oscillator or Trend Indicator?

Momentum is one of the simplest and most popular indicators among traders. As its creator, certain sources name a French mathematician Paul Émile Appell. This indicator helps define the trend direction and the speed of the price change.

What Should a Trader Know About the Williams' Percent Range?

The Williams Percent Range (Williams %R) is an oscillator of the price movement speed showing the position of the current price in the range between the low and high of the previous periods. The indicator is drawn in a separate window under the price chart and consists of the main line %R and two areas: the overbought and oversold ones.

How Can ADX Help a Trader?

the ADX, or the Average Directional Movement Index, has not become as widespread as, say, the RSI. It is most likely due to the complexity of its formula; what is more, it is more of a trend indicator, and a beginner is seldom ready to trade large movements with large Stop Losses.

How to Use Moving Average Indicator: Description and Trading

One of the most popular indicators (and, perhaps, the one that a trader first comes across starting their way on Forex) is the Moving Average (MA). The Moving Average belongs to the group of trend indicators and shows the average price of the chosen currency during a certain period of time.

Getting Acquainted with the Pivot Points

The history of the Pivot Points indicator began in the early 30s of the twentieth century when a mathematician and a that-time famous trader Henry Chase decided to create an indicator meant for the security market. The synonym for a pivot would be a reversal, so a pivot point is a level on which the price reverses. So, the basis of the Pivot Point indicator is the idea that the market takes everything into account and repeats itself with time. The indicator was created in such a way that the opening and closing prices may serve as the support and resistance levels in the future.

Parabolic Sar Indicator: Description of Use

The author of the Parabolic Sar is J. Welles Wilder. He first used it in 1976. In his book "New Concepts In Technical Trading Systems" Wilder presented several indicators: the Parabolic Sar, RSI, ADX.

Using Bollinger Bands: Indicator Description

In the description of the indicator in the book "Bollinger on Bollinger Bands", it is said that the price remains at the borders of the lines 95% of the time and escapes those borders in 5 remaining percent. If volatility on the market is low, the upper and the lower lines are close to one the other, while the price is trading between them; the higher the volatility, the wider the channel formed by the three lines (pic 1). According to the classification, the Bollinger Bands are a trend indicator as it shows both flats and directed price movements. The timeframe may be anything from M1 to a year.

RSI Indicator: Description, Trading, Combining

The Relative Strength Index (RSI) is one of the few trader's instruments able to go ahead of the price. Of course, such situations do not happen every day, however, this feature is really interesting and useful for the analysis of the current market situation.

MACD Indicator: Settings, Trading, Divergence

The MACD is one of the most popular technical indicators. It is included into most trading platforms for financial and commodity markets. The indicator was created almost 40 years ago by Gerald Appel. It was first used in 1979. MACD is an abbreviation of the phrase Moving Average Convergence/Divergence.

How to Use Ichimoku Kinko Hyo: Ultimate Guide

Ichimoku Kinko Hyo is a technical analysis method devised in 1926 by Goichi Hosoda, better known under the pen-name Sanjin Ichimoku. In Japanese Ichimoku Kinko Hyo roughly means “instant representation” or “one glance cloud chart”. The indicator was designed in addition to candlestick charts on the commodity market, and the author used it successfully for rice trading. Later it was elaborated and introduced to the public in 1968, since then being one of the traditional instruments of Japanese traders.

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