If you frequent forex forums, this word will undoubtedly haunt you. Indicators. Everyone’s talking about them, but what are they? What do they mean? And more importantly, how can they help you make better decisions when you trade?
The dictionary defines indicators as “a pointing or directing device, as a pointer on the dial of an instrument to show pressure, temperature, speed, volume or the like”. In forex, an indicator is an equation that gathers past data in order to provide some sort of insight as to where the market may move.
I’m going to be going in alphabetical order listing all of the popular indicators, what they represent, and how traders use them to estimate future market movement.
MACD , Alligator Indicator , MFI , Momentum , Parabolic SAR , Pivot Points
, Price Chanel , Price Oscillator , RSI Indicator , Stochastic Indicator ,
William’s Percentage Range Indicator , ZigZag
Showing posts with label Momentum. Show all posts
Showing posts with label Momentum. Show all posts
May 14, 2011
What is Technical Analysis?
Technical analysis
attempts to forecast future price movements by examining past market data.
Most traders use technical analysis to get a "big picture" on an investment's price history. Even fundamental traders will glance at a chart to see if they're buying at a fair price, selling at a cyclical top or entering a choppy, sideways market.
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