We have explored more than a few indicators in this lesson, some of which you may find practical for use, and some which you may prefer not to use. At the end of the day, technical analysis is all about making informed decisions on the future of the price based on price alone.
Showing posts with label Technical Indicators. Show all posts
Showing posts with label Technical Indicators. Show all posts
How to Use Bollinger Bands
Bollinger Bands may very well be one of the most useful technical indicators. Compared to other trading indicators, you can think of Bollinger Bands as a Swiss army knife—there’s so many uses for them that Bollinger Bands are almost ubiquitous with technical analysis.
Average Directional Index {ADI}
The Average Directional Index, or ADI, is a premier technical analysis indicator that shows investors when markets are trending. We can use the ADI to find key points of entry, and explore when a buy or sell ahead of a trend makes sense.
Relative Strength Index {RSI}
The relative strength index, or RSI, is a commonly-used indicator for spotting new trends in the price of a currency pair. By using the relative strength index, a trader can keep close tabs on the relative strength of a market movement, up or down.
Moving Average Convergence Divergence[MACD]
Previously, we explained how exponential moving averages were just modified simple moving averages. Now we’re going to explain the Moving Average Convergence Divergence, often known as simply “the MACD.”
Technical Analysis Indicators
By now you’ve become accustomed to the forex markets. You understand how they work, why they work, and basic methods for evaluating the markets for successful trades. Now we’re going to explore technical analysis to its fullest with indicators that forex traders use to make sense of the markets.
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