From the NFA guide to Forex Trading "Trading in Off-Exchange Foreign Currency Market: What Investors Need to Know."
the most commonly used terminology in Forex Trading, financial and investment, explained in simple to understand English.
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May 15, 2011
Reading Market Indicators: popular indicators, Part 2
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
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
Reading Market Indicators: popular indicators, Part 1
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.
Acceleration Deceleration Oscillator (AC) , Accumulation/Distribution Line
, Alpha-Beta Trend , Aroon Indicators , ADX Indicator , ATR , Awesome
Oscillator , Bollinger ,CCI ,Fractal Indicator , Ichimoku Cloud ,MA
Chart Patterns
In the Forex market, price has a tendency to repeat past patterns. Think of
price like an animal. Animals have habits that they exhibit. For example, a man
may have the habit of bending down and picking up coins. Will he pick up the
coins every time? Maybe, and maybe not. But what if this man makes a notable
motion before he picks up his dropped coin. Perhaps every time he wipes his nose
after dropping a coin, he will bend down and pick it up. In this case, the act
of him wiping his nose will be the pattern that leads to him doing an expectable
"trend".
May 14, 2011
Economic Indicators
What are Economic Indicators?
Economic indicators are snippets of financial and economic data published regularly by governmental agencies and the private sector. These statistics help market observers monitor the economy's pulse - so it's no surprise that they're religiously followed by almost everyone in the financial markets.With so many people poised to react to the same information, economic indicators have tremendous potential to generate volume and to move prices. It might seem like you need an advanced economics degree to parse all this data accurately - but in fact traders need only keep a few simple guidelines in mind to making trading decisions based on this data.
Introduction to Fundamental Analysis
What is Fundamental Analysis?
Fundamental analysis studies the core underlying elements that influence the economy of a particular entity, like a stock or currency. It attempts to predict price action and trends by analyzing economic indicators, government policy, societal and other factors within a business cycle framework.
If you think of the markets as a big clock, fundamentals are the gears and springs that move the hands around the face. Anyone can tell you what time it is now, but the fundamentalist knows about the inner workings that move the clock's hands towards times (or prices) in the future.
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