Learn Forex

ForexRobots

Active Trader
Apr 17, 2009
4
0
32
forexrobotswar.com
Here are some forex indicators which will help you to optimize your returns and thus leading you to mature as a successful trader.

Simple Moving Average (SMA)- this is the average price over a certain period of time, keeping in mind that equal weighting is given to each daily price. The time period can be 5 minutes, 10 minutes, 1 day, 1 month etc. Where each of the chosen periods carries the same weight for the average.

Exponential Moving Average(EMA) - Here, in exponential moving average indicator the averages are calculated with the recent forex rates carrying more weight in the overall average; for example: In a 10-day exponential moving average, the last 5 days will have more effect on the average than the first 5 days. The idea is to use the most recent data as a better indication of trend direction. This moving average reacts faster to recent price changes than a simple moving average. The 12- and 26-day EMAs are the most popular short-term averages, and they are used to create indicators like the moving average convergence divergence (MACD) and the percentage price oscillator (PPO). In general, the 50- and 200-day EMAs are used as signals of long-term trends.

Bollinger Bands - The basic interpretation of Bollinger Bands is that, the prices tend to stay within the upper and lower bands. The Bollinger Bands have unique characteristic that the spacing between the bands varies based on the volatility of the currency prices. During high volatility periods, the bands widen to become more forgiving. Similarly during periods of low volatility, the bands narrow to contain currency prices. The bands are draw with two standard deviations above and below a SMA. They indicate a "sell" when above the moving average (or close to the upper band) and a "buy" when below it (or close to the lower band). The bands are used by some forex traders in conjunction with other analyses, including RSI, MACD, CCI, and Rate of Change.

Rate of Change – This is one of the simplest and very useful indicators. It is calculated by ROC = ( (Today's close - Close n periods ago) / (Close n periods ago) ) * 100. ROC can be prepared by using different periods such as 15 days or 45 days. The longer the time span used, the greater the fluctuation in the indicator (in terms of both magnitude and duration).
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RSI (Relative Strength Index)- The RSI is extremely useful and popular indicator. It is a price-following oscillator that ranges between 0 and 100. The RSI is analyzed by looking for a divergence where the currency price is making a new high, but the RSI is failing to surpass its previous high. This divergence is an indication of an impending reversal. When the RSI then turns down and falls below its most recent trough, it is said to have completed a "failure swing." The failure swing is considered a confirmation of the impending reversal in the price of the currency.

Stochastic – This is based on the premise that as prices rise, closing prices tend to be near the high value. Conversely, as prices fall, closing prices are near the low for the period. Stochastic studies are made of two lines, %D and %K, that move between a scale of 0 and 100. The %D line is the moving average over a specified period of time of the %K line. The %K line measures where the closing price of a currency is compared to the price range for a given number of periods. If the closing levels that are consistently near the top of the range indicate accumulation (buying pressure) and those near the bottom of the range indicate distribution (selling pressure).

Momentum - The Momentum indicator calculates the value of the commodity price shifts during a definite period of time. It is designed to measure the rate of price change, but not the actual price level. This consists of the net difference between the current closing price and the oldest closing price from a predetermined period. The Momentum indicator can be used as either a trend-following oscillator similar to the MACD or as a leading indicator.

MACD - Moving Average Convergence/Divergence - Consists of two exponential moving averages that are plotted against the zero line. The zero line represents the times the values of the two moving averages are identical. The MACD is calculated by subtracting a 26-day moving average of a currency's price from a 12-day moving average of its price. The result is an indicator that oscillates above and below zero. When the MACD is above zero, it means the 12-day moving average is higher than the 26-day moving average. This is bullish as it shows that current expectations (i.e., the 12-day moving average) are more bullish than previous expectations (i.e., the 26-day average). This implies a bullish, or upward, shift in the forex rate. When the MACD falls below zero, it means that the 12-day moving average is less than the 26-day moving average, implying a bearish shift in the currency.

Oscillators: Oscillators represent a useful technical analysis tool for discovering short-term overbought or oversold forex market conditions. Using oscillators can help forex traders notice when the currency is moving into an overbought/oversold situation and consider selling/buying it. The signals that oscillators give are considered to be of greatest value when they are located at the extremes of their scales. Additionally, the crossing of the zero line, when applicable, generally gives direction signals.

I hope this article helped you and enhanced your knowledge for better understanding of forex indicators thus increasing your returns.
 

ForexRobots

Active Trader
Apr 17, 2009
4
0
32
forexrobotswar.com
Here are some daily FX updates:

YEN

The Yen fell to a three month low against the Dollar and Euro on Tuesday as continued concerns over the viability of Japan’s economy pushed investors out of the Japanese currency and into a variety of other options. The Yen has rapidly lost its safe-haven status among investors who, even with the US’s problems, are flocking to the Dollar still.

At 5PM GMT the Yen was down 2% to the Euro at 122.64 and 1 ¾% to the USD at 96.24. The British Poind also advanced on the Yen up 1.6% to 139.19 – the AUD rose 2 ½% to 62.1 and the Franc was up 2.2% to 82.7.

USD

US Housing prices fell an extraordinary 18.5% in December from the previous year as the scope of the crises that analysts theorize started the crisis in the US broadened (grew larger). The US markets were also waiting on Federal Reserve Chairman Ben Bernanke as he delivers testimony to the US Congress. The USD was trading mixed against a basket of currencies in advance of this news. As well, President Obama is scheduled to deliver a speech to both houses of Congress Tuesday evening regarding his proposals for cutting the enormous US deficit. Traders are skeptical of the plan which contradicts the recent stimulus package as it calls for raising taxes significantly.

At 5:10 GMT the Dollar was down 1/3rd to the Euro at 1.2738, the CAD to 1.2491, the CHF to 1.1647, the AUD to .6436 and the NZD to .5093. The dollar did make gains against the GBP, up about ½% to 1.4428.

EUR

Germany came out with its much anticipated IFO business climate indicator which had fallen more than expected to 82.6 – estimates had the level remaining at 83.0. The market did not respond as traders took Tuesday to play the Dollar and Yen in advance of the news coming out of Washington.

The Euro was up 1% versus the Pound to .8828, up slightly to the CHF to 1.4847 and the AUD at 1.9789 and trading flat to the NZD at 2.5.
 

Pinalli

Master Trader
Jan 31, 2009
334
4
54
Here are some forex indicators which will help you to optimize your returns and thus leading you to mature as a successful trader.

Simple Moving Average (SMA)- this is the average price over a certain period of time, keeping in mind that equal weighting is given to each daily price. The time period can be 5 minutes, 10 minutes, 1 day, 1 month etc. Where each of the chosen periods carries the same weight for the average.

Exponential Moving Average(EMA) - Here, in exponential moving average indicator the averages are calculated with the recent forex rates carrying more weight in the overall average; for example: In a 10-day exponential moving average, the last 5 days will have more effect on the average than the first 5 days. The idea is to use the most recent data as a better indication of trend direction. This moving average reacts faster to recent price changes than a simple moving average. The 12- and 26-day EMAs are the most popular short-term averages, and they are used to create indicators like the moving average convergence divergence (MACD) and the percentage price oscillator (PPO). In general, the 50- and 200-day EMAs are used as signals of long-term trends.

Bollinger Bands - The basic interpretation of Bollinger Bands is that, the prices tend to stay within the upper and lower bands. The Bollinger Bands have unique characteristic that the spacing between the bands varies based on the volatility of the currency prices. During high volatility periods, the bands widen to become more forgiving. Similarly during periods of low volatility, the bands narrow to contain currency prices. The bands are draw with two standard deviations above and below a SMA. They indicate a "sell" when above the moving average (or close to the upper band) and a "buy" when below it (or close to the lower band). The bands are used by some forex traders in conjunction with other analyses, including RSI, MACD, CCI, and Rate of Change.

Rate of Change – This is one of the simplest and very useful indicators. It is calculated by ROC = ( (Today's close - Close n periods ago) / (Close n periods ago) ) * 100. ROC can be prepared by using different periods such as 15 days or 45 days. The longer the time span used, the greater the fluctuation in the indicator (in terms of both magnitude and duration).
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RSI (Relative Strength Index)- The RSI is extremely useful and popular indicator. It is a price-following oscillator that ranges between 0 and 100. The RSI is analyzed by looking for a divergence where the currency price is making a new high, but the RSI is failing to surpass its previous high. This divergence is an indication of an impending reversal. When the RSI then turns down and falls below its most recent trough, it is said to have completed a "failure swing." The failure swing is considered a confirmation of the impending reversal in the price of the currency.

Stochastic – This is based on the premise that as prices rise, closing prices tend to be near the high value. Conversely, as prices fall, closing prices are near the low for the period. Stochastic studies are made of two lines, %D and %K, that move between a scale of 0 and 100. The %D line is the moving average over a specified period of time of the %K line. The %K line measures where the closing price of a currency is compared to the price range for a given number of periods. If the closing levels that are consistently near the top of the range indicate accumulation (buying pressure) and those near the bottom of the range indicate distribution (selling pressure).

Momentum - The Momentum indicator calculates the value of the commodity price shifts during a definite period of time. It is designed to measure the rate of price change, but not the actual price level. This consists of the net difference between the current closing price and the oldest closing price from a predetermined period. The Momentum indicator can be used as either a trend-following oscillator similar to the MACD or as a leading indicator.

MACD - Moving Average Convergence/Divergence - Consists of two exponential moving averages that are plotted against the zero line. The zero line represents the times the values of the two moving averages are identical. The MACD is calculated by subtracting a 26-day moving average of a currency's price from a 12-day moving average of its price. The result is an indicator that oscillates above and below zero. When the MACD is above zero, it means the 12-day moving average is higher than the 26-day moving average. This is bullish as it shows that current expectations (i.e., the 12-day moving average) are more bullish than previous expectations (i.e., the 26-day average). This implies a bullish, or upward, shift in the forex rate. When the MACD falls below zero, it means that the 12-day moving average is less than the 26-day moving average, implying a bearish shift in the currency.

Oscillators: Oscillators represent a useful technical analysis tool for discovering short-term overbought or oversold forex market conditions. Using oscillators can help forex traders notice when the currency is moving into an overbought/oversold situation and consider selling/buying it. The signals that oscillators give are considered to be of greatest value when they are located at the extremes of their scales. Additionally, the crossing of the zero line, when applicable, generally gives direction signals.

I hope this article helped you and enhanced your knowledge for better understanding of forex indicators thus increasing your returns.

What is this???? You have taken my article only from the blog owned my me???

Here is the link: http://forexmoneymaker.blog.com/3554125/

Please ask me in future before you do anything with my content as you can get into trouble otherwise.

Thanks and regards
 

andy003

Master Trader
Jan 7, 2009
252
1
47
The USD gave back a few of its current gains next to the Euro, declining while plummeting to 95.61 against the JPY. The FOMC lashed out off its two-day financial policy gathering earlier and will be declaring the consequences Wednesday morning. The FED’s standard loan rate previously at zero, there is probably to be no modification in interest rates. The key center will be whether the FOMC will carry on relieving policy through alternative actions. The plan declaration will also be strongly scrutinized.

US equities scraped back into constructive territory next a surprise reading in the Conference Board’s review of consumer self-assurance, which sharply strike prospect in April at 39.2 from a modified reading of 26.9 a month past. The spring back in consumer confidence marked its strongest interpretation while November 2008. The February Case-Shiller home price index turned down by 2.2 percent on a monthly basis versus a 2.8 percent fall in the preceding month, while on the way out by 18.63 percent evaluated with a modified 19 percent fall a year earlier. Also released was the April Richmond Fed manufacturing index state a -9.0 reading weighed next to with -20 in the preceding month.
 

Time2Fx

Active Trader
Apr 29, 2009
53
0
42
CyberWorld
www.babypips.com
Thanks for this thread, i'm Fx Newbie maybe i can learn from here.
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