Forex indicators

 What are Forex indicators?


Many forex traders spend their time looking for the perfect time to enter the markets or for a revealing sign saying "buy" or "sell". And while the research can be fascinating, the result is always the same. The truth is, there is no way to trade Forex markets. Therefore, traders should be aware that there are a variety of indicators that can help determine the best time to buy or sell a currency cross rate.


The Forex indicators.


1. Moving average

A moving average is a technical indicator that market analysts and investors can use to determine the direction of a trend. Sum the financial security data points over a period of time and divide the sum by the number of data points to get an average. It is known as the "moving" average because it is constantly recalculated based on the most recent price data. On the other hand, the exponential moving average focuses on the recent movement that helps traders enter a trade.


2. Relative strength index

The Relative Strength Index (RSI acronym) is one of the most widely used momentum oscillators in the field of technical stock analysis.  A momentum oscillator measures the speed and extent of a security's price movement. RSI compares the average gain and average loss of a security to determine its strength and weakness over a predetermined period of time.


3. MACD

One of the most used forex indicators is MACD - Moverage Average Convergence and Divergence. MACD is a trading indicator that consists of a histogram and an exponential moving average. The main purpose of this indicator is to calculate the price deviation. Regular divergence with the MACD and price indicates a market reversal, while its hidden divergence indicates a market continuation. Traders often use it as a leading indicator to help create a trading strategy. On the other hand, you can use this indicator to find a possible market turning point or continuation point  Read More...

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