these technical indicators fall into various differing categories. Some of these categories include trend indicators, strength indicators, volatility indicators, and cycle indicators. Each of these indicators is a tool which can be used to predict fluctuations in the market.
Common technical indicators frequently used in FOREX are as follows:
Average Directional Movement Index or ADX for short – this is utilized in to demonstrate if a market is entering an upward or downward trend, and to indicate the strength of the give trend. For the scale usually used by this index, results above 25 indicate a trend with a greater strength than usual.
Moving Average Convergence/Divergence or MACD for short – this demonstrates the current momentum of the market, as well as displaying the relationship between two fluid averages. A strong market is usually demonstrated when the MACD crosses over the signal line.
Stochastic Oscillator – this demonstrates the strength or weakness of a given market by way of comparing a given ending price to a price range over a specific time interval. A stochastic value under 20 demonstrates a currency that is oversold, while a stochastic value over 80 demonstrates a currency that is overbought.
Relative Strength Indicator or RSI for short – this is a scale from 1-100 which indicates the peak and low prices over a specific time interval. A price which falls below 30 is indicative of an oversold commodity, while a price above 70 is indicative of an overbought commodity.
Moving Average – this refers to the average price over a specific time period when that price is compared with other average prices during the same interval. For instance, ending prices over a 6 day interval would have a moving average of the total of the 6 ending prices divided by 6.
Bollinger Bands – these are bands which contain the great majority of a currency's current value. These bands consist of three horizontal lines. The top and bottom lines display fluctuations in price, while the middle line demonstrates the mean price. During time periods when the price is very volatile, the disparity between upper and lower bands increases. Overbought or oversold times are indicated when a bar or candlestick comes into contact with a Bollinger band.
Average Directional Movement Index or ADX for short – this is utilized in to demonstrate if a market is entering an upward or downward trend, and to indicate the strength of the give trend. For the scale usually used by this index, results above 25 indicate a trend with a greater strength than usual.
Moving Average Convergence/Divergence or MACD for short – this demonstrates the current momentum of the market, as well as displaying the relationship between two fluid averages. A strong market is usually demonstrated when the MACD crosses over the signal line.
Stochastic Oscillator – this demonstrates the strength or weakness of a given market by way of comparing a given ending price to a price range over a specific time interval. A stochastic value under 20 demonstrates a currency that is oversold, while a stochastic value over 80 demonstrates a currency that is overbought.
Relative Strength Indicator or RSI for short – this is a scale from 1-100 which indicates the peak and low prices over a specific time interval. A price which falls below 30 is indicative of an oversold commodity, while a price above 70 is indicative of an overbought commodity.
Moving Average – this refers to the average price over a specific time period when that price is compared with other average prices during the same interval. For instance, ending prices over a 6 day interval would have a moving average of the total of the 6 ending prices divided by 6.
Bollinger Bands – these are bands which contain the great majority of a currency's current value. These bands consist of three horizontal lines. The top and bottom lines display fluctuations in price, while the middle line demonstrates the mean price. During time periods when the price is very volatile, the disparity between upper and lower bands increases. Overbought or oversold times are indicated when a bar or candlestick comes into contact with a Bollinger band.
Since the recent yen cross meltdown started I've been trying to keep from getting caught on the wrong side of any massive downward moves.As I generally trade only the AUDJPY, mostly on the long side, things have been pretty quiet!However, we are now facing some resistance at 74.50 on the 1hr -- which should be illustrative. We have done what might be a triple bounce off of support in the vicinity of 70.90 or so too. I'm thinking we may have another downturn to confirm support but we could certainly get right back to business without it.In any case, as the market is starting to act rational, I'm just about ready to start trading according to my own particular style.
Common technical indicators frequently used in FOREX are as follows:
Average Directional Movement Index or ADX for short – this is utilized in to demonstrate if a market is entering an upward or downward trend, and to indicate the strength of the give trend. For the scale usually used by this index, results above 25 indicate a trend with a greater strength than usual.
Moving Average Convergence/Divergence or MACD for short – this demonstrates the current momentum of the market, as well as displaying the relationship between two fluid averages. A strong market is usually demonstrated when the MACD crosses over the signal line.
Stochastic Oscillator – this demonstrates the strength or weakness of a given market by way of comparing a given ending price to a price range over a specific time interval. A stochastic value under 20 demonstrates a currency that is oversold, while a stochastic value over 80 demonstrates a currency that is overbought.
Relative Strength Indicator or RSI for short – this is a scale from 1-100 which indicates the peak and low prices over a specific time interval. A price which falls below 30 is indicative of an oversold commodity, while a price above 70 is indicative of an overbought commodity.
Moving Average – this refers to the average price over a specific time period when that price is compared with other average prices during the same interval. For instance, ending prices over a 6 day interval would have a moving average of the total of the 6 ending prices divided by 6.
Bollinger Bands – these are bands which contain the great majority of a currency's current value. These bands consist of three horizontal lines. The top and bottom lines display fluctuations in price, while the middle line demonstrates the mean price. During time periods when the price is very volatile, the disparity between upper and lower bands increases. Overbought or oversold times are indicated when a bar or candlestick comes into contact with a Bollinger band.
Average Directional Movement Index or ADX for short – this is utilized in to demonstrate if a market is entering an upward or downward trend, and to indicate the strength of the give trend. For the scale usually used by this index, results above 25 indicate a trend with a greater strength than usual.
Moving Average Convergence/Divergence or MACD for short – this demonstrates the current momentum of the market, as well as displaying the relationship between two fluid averages. A strong market is usually demonstrated when the MACD crosses over the signal line.
Stochastic Oscillator – this demonstrates the strength or weakness of a given market by way of comparing a given ending price to a price range over a specific time interval. A stochastic value under 20 demonstrates a currency that is oversold, while a stochastic value over 80 demonstrates a currency that is overbought.
Relative Strength Indicator or RSI for short – this is a scale from 1-100 which indicates the peak and low prices over a specific time interval. A price which falls below 30 is indicative of an oversold commodity, while a price above 70 is indicative of an overbought commodity.
Moving Average – this refers to the average price over a specific time period when that price is compared with other average prices during the same interval. For instance, ending prices over a 6 day interval would have a moving average of the total of the 6 ending prices divided by 6.
Bollinger Bands – these are bands which contain the great majority of a currency's current value. These bands consist of three horizontal lines. The top and bottom lines display fluctuations in price, while the middle line demonstrates the mean price. During time periods when the price is very volatile, the disparity between upper and lower bands increases. Overbought or oversold times are indicated when a bar or candlestick comes into contact with a Bollinger band.
Since the recent yen cross meltdown started I've been trying to keep from getting caught on the wrong side of any massive downward moves.As I generally trade only the AUDJPY, mostly on the long side, things have been pretty quiet!However, we are now facing some resistance at 74.50 on the 1hr -- which should be illustrative. We have done what might be a triple bounce off of support in the vicinity of 70.90 or so too. I'm thinking we may have another downturn to confirm support but we could certainly get right back to business without it.In any case, as the market is starting to act rational, I'm just about ready to start trading according to my own particular style.
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