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Forex indicators

ProfitMaximizer101

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Here are some forex indictors which will help you to optimize your returns and thus leading you to mature as a successful trader.

Simple Moving Average (SMA)
- this is the average price over a certain period of time, keeping in mind that equal weighting is given to each daily price. The time period can be 5 minutes, 10 minutes, 1 day, 1 month etc. Where each of the chosen periods carries the same weight for the average.

Exponential Moving Average(EMA)
- Here, in exponential moving average indicator the averages are calculated with the recent forex rates carrying more weight in the overall average; for example: In a 10-day exponential moving average, the last 5 days will have more effect on the average than the first 5 days. The idea is to use the most recent data as a better indication of trend direction. This moving average reacts faster to recent price changes than a simple moving average. The 12- and 26-day EMAs are the most popular short-term averages, and they are used to create indicators like the moving average convergence divergence (MACD) and the percentage price oscillator (PPO). In general, the 50- and 200-day EMAs are used as signals of long-term trends.

Bollinger Bands -
The basic interpretation of Bollinger Bands is that, the prices tend to stay within the upper and lower bands. The Bollinger Bands have unique characteristic that the spacing between the bands varies based on the volatility of the currency prices. During high volatility periods, the bands widen to become more forgiving. Similarly during periods of low volatility, the bands narrow to contain currency prices. The bands are draw with two standard deviations above and below a SMA. They indicate a "sell" when above the moving average (or close to the upper band) and a "buy" when below it (or close to the lower band). The bands are used by some forex traders in conjunction with other analyses, including RSI, MACD, CCI, and Rate of Change.

Rate of Change – This is one of the simplest and very useful indicators. It is calculated by ROC = ( (Today's close - Close n periods ago) / (Close n periods ago) ) * 100. ROC can be prepared by using different periods such as 15 days or 45 days. The longer the time span used, the greater the fluctuation in the indicator (in terms of both magnitude and duration).
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RSI (Relative Strength Index)- The RSI is extremely useful and popular indicator. It is a price-following oscillator that ranges between 0 and 100. The RSI is analyzed by looking for a divergence where the currency price is making a new high, but the RSI is failing to surpass its previous high. This divergence is an indication of an impending reversal. When the RSI then turns down and falls below its most recent trough, it is said to have completed a "failure swing." The failure swing is considered a confirmation of the impending reversal in the price of the currency.

Stochastic –
This is based on the premise that as prices rise, closing prices tend to be near the high value. Conversely, as prices fall, closing prices are near the low for the period. Stochastic studies are made of two lines, %D and %K, that move between a scale of 0 and 100. The %D line is the moving average over a specified period of time of the %K line. The %K line measures where the closing price of a currency is compared to the price range for a given number of periods. If the closing levels that are consistently near the top of the range indicate accumulation (buying pressure) and those near the bottom of the range indicate distribution (selling pressure).

Momentum - The Momentum indicator calculates the value of the commodity price shifts during a definite period of time. It is designed to measure the rate of price change, but not the actual price level. This consists of the net difference between the current closing price and the oldest closing price from a predetermined period. The Momentum indicator can be used as either a trend-following oscillator similar to the MACD or as a leading indicator.

MACD - Moving Average Convergence/Divergence - Consists of two exponential moving averages that are plotted against the zero line. The zero line represents the times the values of the two moving averages are identical. The MACD is calculated by subtracting a 26-day moving average of a currency's price from a 12-day moving average of its price. The result is an indicator that oscillates above and below zero. When the MACD is above zero, it means the 12-day moving average is higher than the 26-day moving average. This is bullish as it shows that current expectations (i.e., the 12-day moving average) are more bullish than previous expectations (i.e., the 26-day average). This implies a bullish, or upward, shift in the forex rate. When the MACD falls below zero, it means that the 12-day moving average is less than the 26-day moving average, implying a bearish shift in the currency.
 
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arul57

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Here are some forex indictors which will help you to optimize your returns and thus leading you to mature as a successful trader.

Simple Moving Average (SMA)
- this is the average price over a certain period of time, keeping in mind that equal weighting is given to each daily price. The time period can be 5 minutes, 10 minutes, 1 day, 1 month etc. Where each of the chosen periods carries the same weight for the average.

Exponential Moving Average(EMA)
- Here, in exponential moving average indicator the averages are calculated with the recent forex rates carrying more weight in the overall average; for example: In a 10-day exponential moving average, the last 5 days will have more effect on the average than the first 5 days. The idea is to use the most recent data as a better indication of trend direction. This moving average reacts faster to recent price changes than a simple moving average. The 12- and 26-day EMAs are the most popular short-term averages, and they are used to create indicators like the moving average convergence divergence (MACD) and the percentage price oscillator (PPO). In general, the 50- and 200-day EMAs are used as signals of long-term trends.

Bollinger Bands -
The basic interpretation of Bollinger Bands is that, the prices tend to stay within the upper and lower bands. The Bollinger Bands have unique characteristic that the spacing between the bands varies based on the volatility of the currency prices. During high volatility periods, the bands widen to become more forgiving. Similarly during periods of low volatility, the bands narrow to contain currency prices. The bands are draw with two standard deviations above and below a SMA. They indicate a "sell" when above the moving average (or close to the upper band) and a "buy" when below it (or close to the lower band). The bands are used by some forex traders in conjunction with other analyses, including RSI, MACD, CCI, and Rate of Change.

Rate of Change – This is one of the simplest and very useful indicators. It is calculated by ROC = ( (Today's close - Close n periods ago) / (Close n periods ago) ) * 100. ROC can be prepared by using different periods such as 15 days or 45 days. The longer the time span used, the greater the fluctuation in the indicator (in terms of both magnitude and duration).
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RSI (Relative Strength Index)- The RSI is extremely useful and popular indicator. It is a price-following oscillator that ranges between 0 and 100. The RSI is analyzed by looking for a divergence where the currency price is making a new high, but the RSI is failing to surpass its previous high. This divergence is an indication of an impending reversal. When the RSI then turns down and falls below its most recent trough, it is said to have completed a "failure swing." The failure swing is considered a confirmation of the impending reversal in the price of the currency.

Stochastic –
This is based on the premise that as prices rise, closing prices tend to be near the high value. Conversely, as prices fall, closing prices are near the low for the period. Stochastic studies are made of two lines, %D and %K, that move between a scale of 0 and 100. The %D line is the moving average over a specified period of time of the %K line. The %K line measures where the closing price of a currency is compared to the price range for a given number of periods. If the closing levels that are consistently near the top of the range indicate accumulation (buying pressure) and those near the bottom of the range indicate distribution (selling pressure).

Momentum - The Momentum indicator calculates the value of the commodity price shifts during a definite period of time. It is designed to measure the rate of price change, but not the actual price level. This consists of the net difference between the current closing price and the oldest closing price from a predetermined period. The Momentum indicator can be used as either a trend-following oscillator similar to the MACD or as a leading indicator.

MACD - Moving Average Convergence/Divergence - Consists of two exponential moving averages that are plotted against the zero line. The zero line represents the times the values of the two moving averages are identical. The MACD is calculated by subtracting a 26-day moving average of a currency's price from a 12-day moving average of its price. The result is an indicator that oscillates above and below zero. When the MACD is above zero, it means the 12-day moving average is higher than the 26-day moving average. This is bullish as it shows that current expectations (i.e., the 12-day moving average) are more bullish than previous expectations (i.e., the 26-day average). This implies a bullish, or upward, shift in the forex rate. When the MACD falls below zero, it means that the 12-day moving average is less than the 26-day moving average, implying a bearish shift in the currency.

very usefull info about forex technical.
ada tak yg telah dialih bahasakan??:-? tak berapa nak faham sangat. maklumlah mengaji sekolah forex tak tinggi sangat. Kalau ada skali ngan SS lg bagus.

# apa2 pun rezeki jgn ditolak, musuh jgn dicari:D
 

ProfitMaximizer101

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thanks buddies... As you all have seen i am just a newbie here.... as soon as i'll get the best of best information i'll post the same.

Regards
 

damasutra

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mintak jasa baik kekawan kat sini kalau ada indi probability meter yg free...bleh la bagi kongsi
 

CoreDuo

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Profit101...
do you have any of the indicators that you can share with me/us?

Thanks
 
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