Forex Technical Indicators
LearnForex Indicators: Understand basicworking of six most important Forex Indicator.1.
AverageDirectional Movement Index (ADX) Learn Forex ADX is used when we needto know the direction in which the Forex market trend is going i.e. eitherdownward or upward and how strong the Forex trend is. WhenADX readings over 25 indicate a Forex trend with higher values indicatingstronger Forex trends.2.
Moving AverageConvergence/Divergence (MACD). Learn Forex MACD shows the momentum of aForex market and the relationship between two moving averages. When, forexample, the MACD line crossings of the signal line it indicates a strong Forexmarket.3.
StochasticOscillator- Learn Forex Stochastic Oscillator indicates the strengthand weakness of a Forex market by comparing a closing Forex Market price rangeover a period of time. Stochastic reading above 80 depicts the Forex currencyis overbought while its reading below 20 indicates that the Forex currency isoversold.4.
RelativeStrength Indicator (RSI). Learn Forex RSI is a scale from 0 to 100which indicates the highest and lowest Forex prices over a given time. Whenprices rise above 70 the Forex currency is considered to be overbought while aForex Market price below 30 would indicate a Forex currency which
is oversold.5.
MovingAverage- Learn Forex Moving average Forex indicator is the averageForex Market price for a given time interval in relation to other prices duringthe similar time periods. For instance the closingprices over a 5-day period would have a moving average of the total of the fiveclosing prices divided by five.6.
BollingerBands. Learn Forex Bollinger bands are bands that contain the majorityof a currency's price. Each band consists of three lines - the upper and lowerlines indicate the price movement with the middle line showing the averageForex Market price. In conditions of high volatility the gap between the upperand lower bands will widen. If a bar or candlestick touches one of the bandsthen it will indicate either an overbought or an oversold condition.
**LearnForex Money Management and Risk Analysis:However,it is common that one afraid of being involved in Forex market because of highrisk in this trading field. Although every capital market involves certainlevel of risk, the risk of loss in foreign currency trading market can beextensive. It would be wise to learn about the potential risk (and managing it)if you wish to trade in Forex market.
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