In the previous post of this series I discussed what a Moving Average is and how it’s calculated. Now let’s get to the good stuff and talk about how to trade using it. Learn more about The Moving Average Chart Indicator - part 2...
The oldest and most commonly used of all forex indicators is the Moving Average. A moving average provides a modified view of price movement with smaller, less important price actions filtered out. It is designed to let the trader see the underlying trend of prices without being distracted by momentary spikes or chops which often occur. It is easy to understand and to calculate and can be interpreted in several different ways, which we will explore in later installments. Learn more about The Moving Average Chart Indicator
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What is the stochastics indicator?
Stochastics is an oscillating indicator very commonly used in technical analysis for Trading in Forex. George Lane, the developer of this indicator, applied it for the first time in the late year 1950s and early 1960s.
This indicator is measured on a scale from 0% to 100% and determines the deviation of the closing price on the Forex market, compared with normal levels of a period set by the trader. It is important that you know that this indicator is not recommended to be used in trending markets, since it is less effective in this kind of market. Read on about Forex Trading: The Stochastics Indicator...
Technical indicators by their very nature are designed to give you some idea of the likely price movement in the future by performing calculations on the price movement of the past. Since past price movement is fixed and cannot change, the information an indicator derives from it should also be fixed. For most trading indicators this is true, but some indicators redraw past analysis data as new data comes in. Called ‘Repainting the past’, this is usually considered a sign of a fraudulent indicator; one that tries to convince you it does a better job of creating trading signals than it actually does. In some cases, though, it’s actually a useful technique for highlighting market movement features that might not be evident without ‘repainting’. Continue reading about Forex Trading Indicators - Repainting the Past...
