Understanding Forex Indicator and Determining Forex Signal.

[ayitin69]

Here we are going to discuss about six most important Forex Indicator.

1. Average Directional Movement Index (ADX) - ADX is used when we need to know the direction in which the Forex market trend is going i.e. either downward or upward and how strong the Forex trend is. When ADX readings over 25 indicate a Forex trend with higher values indicating stronger Forex trends.

2. Moving Average Convergence/Divergence (MACD). MACD shows the momentum of a Forex market and the relationship between two moving averages. When, for example, the MACD line crossings of the signal line it indicates a strong Forex market.

3. Stochastic Oscillator- Stochastic Oscillator indicates the strength and weakness of a Forex market by comparing a closing Forex Market price range over a period of time. Stochastic reading above 80 depicts the Forex currency is overbought while its reading below 20 indicates that the Forex currency is oversold.
To be continued....

 

[ayitin69]

Contd...
4. Relative Strength Indicator (RSI). RSI is a scale from 0 to 100 which indicates the highest and lowest Forex prices over a given time. When prices rise above 70 the Forex currency is considered to be overbought while a Forex Market price below 30 would indicate a Forex currency which is oversold.
5. Moving Average- Moving average Forex indicator is the average Forex Market price for a
given time interval in relation to other prices during the similar time periods. For instance the closing prices over a 5-day period would have a moving average of the total of the five closing prices divided by five.
6. Bollinger Bands. Bollinger bands are bands that contain the majority of a currency's price. Each band consists of three lines - the upper and lower lines indicate the price movement with the middle line showing the average Forex Market price. In conditions of high volatility the gap between the upper and lower bands will widen. If a bar or candlestick touches one of the bands then it will indicate either an overbought or an oversold condition.

Which of the indicators is the best one to use?

 

[desire]

Bahasa M'sia takde version dia ke bro? :-?

Apapun, indi2 yang dinyatakan di atas lebis mustajab jika dipadankan dgn CS Pattern.

 

[ayitin69]

I will give examples on how to use each of these indicators in my next or subsequent posts

 

[desire]

I will give examples on how to use each of these indicators in my next or subsequent posts

Looking foward to read about it.

THanks.