Jun-6-2012 By Forex Article
We’ve already briefly looked at moving averages on this blog and the basic uses for them. They essentially give us a great indication of the overall direction of the market and smooth out the extreme peaks and troughs to give us a more balanced view of what’s going on. They’re an extremely popular type of indicator and a large percentage of trading strategies use them in some shape or form.
You may be thinking that trend definition is all they’re useful for but there’s actually another major use for moving averages that many beginners don’t realise and it can actually be the most powerful way to use them.
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Jun-2-2012 By Forex Article
It used to be the case that fundamental analysis was the be all and end all of market speculation. All the famous traders, all the up and comers and everyone else in-between considered themselves a fundamental analyst. Technical analysis was a myth, a load of nonsense dreamt up by traders who couldn’t get fundamental analysis to work for them.
That seems a long time ago now doesn’t it? All you ever see now if you’re looking for trading strategies or trading advice is indicators galore and chart patterns left right and centre. We’ve gone full swing to the point that the standard retail trader doesn’t use fundamental analysis at all. In fact the closest they get is checking an economic calendar to make sure they aren’t opening any trades during a major news release. Even if you try to find some information out about fundamental trading it’s hard to come by and it seems to be limited to large funds and institutions only.
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Mar-18-2009 By Forex Article
The Chaikin Money Flow indicator, developed by Mark Chaikin, was an improved version of his previous discovered indicator ‘Accumulation / Distribution’. Given this fact, Chaikin Money Flow indicator is much similar to its kin ‘Accumulation / Distribution’. Still it differs from the latter as it does not taken in consideration the opening price, but the mean currency price. The word money flow suggests that the calculation of a key value is based on the price & volume. Indexing these calculated key values depicts money flow. Traders using Accumulation / Distribution indicator may not have easy access to the opening prices. They may use CMF (Chaikin Money Flow), which is known as the “oscillating indicator”.
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Mar-15-2009 By Forex Article
On-Balance Volume is a popular volume based technical indicator developed by Joseph Granville in 1963. This indicator lies onus on tracking the momentum by correlating the volume of the trades to the change in price of the underlying currency / stock. This indicator aims to look out for trends where higher number of buyers / sellers form a bullish / bearish scenario respectively. The underlying assumption for this indicator is that volume overtakes the price movements. Many traders prefer OBV, as it is a running indicator. It adds the volumes to identify the cash inflows & outflows. OBV is mainly used to compare the volumes with the currency prices, thus identifying any diverging signal or confirmation.
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Mar-13-2009 By Forex Blog
With the increasing timely improvements in Forex technical analysis tools, the year 1978 saw a new oscillating indicator “Relative Strength Index (RSI)” introduced by J. Welles Wilder. The Relative Strength Index (RSI) is a very famous momentum indicator. This indicator is often confused with other common names “Relative Strength” rankings or “Relative Strength” charts. Unlike other types of “Relative Strength” indicators, the RSI uses one currency for calculating the value.
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Mar-11-2009 By Forex Blog
One of the most simple and popular technical analysis indicators is the moving averages method. This method is known for its flexibility and user-friendliness. This method calculates the average price of the currency or stock over a period of time. The term “moving average” means that the average moves or follows a certain trend. The aim of this tool is to indicate to the trader if there is a beginning of any new trend or if there is a signal of end to the old trend. Traders use this method, as it is relatively easy to understand the direction of the trends with the help of moving averages.
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Jan-25-2009 By Forex Blog
There are many technical analysis tools which a trader can refer to. Technical analysis is one part of the trio. The other two are of course fundamental analysis and news trading. Now, a trader looks to use all these technical tools for predicting the movement of stock, its price reversals, rally and correction, support and resistances. Fibonacci retracement is one method of trading the market. Of course this indicator gives greater accuracy if it’s used in combination with Bollinger bands, trend lines, candlestick bars and others. Read the rest of this entry »