Posts Tagged ‘indicator’

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How the Parabolic SAR Is Used

The term Parabolic SAR can be divided into two parts. A parabola is an important concept in abstract mathematics. Even though the methods for determining a parabolic curve are very complex, it's very easy to use Parabolic SAR. SAR stands for stop and reverse. Though many people say support and resistance. The parabolic curve creates a line on the chart working much like support and resistance. The parabolic line is only above […]

What Is OsMA Indicator?

The oscillator of moving average known as OsMA, is an indicator that shows the momentum of price action. It is calculated by taking the difference between a shorter term Moving Average and a longer term Moving Average. The two most common are the 12-period Moving Average and the 26-period Moving Average. Because of this, it is best described as a modification of the MACD indicator. A cross through the zero or center line can be very simple way […]

CCI Commodity Channel Index Video Tutorial

The CCI indicator was originally based upon analysis and buying and selling commodities, but you can actually use for any of the markets like stocks, ETF, Forex, commodities, and futures. It can be used in two different ways, one is overbought and oversold. The other way is really more of a trend based indicator, when we are looking for big moves or big trends in the market. So, down below, if […]

Using Bollinger Bands to Exit and Enter Trades

Let's say that you have got into the market at the right time and your trade is going well. You can close your trade and take a profit now or do you wait for the market to go a little bit further. Without looking at the chart, it is hard to tell, but this is a dilemma for most traders with a successful trading strategy. At some point you have had a trade going […]

Explanation of Bollinger Bands Indicator

Bollinger Bands have been created by John Bollinger in 1980s as an indicator to help identify short-term changes in the asset's price action. This indicator consists of a Moving Average, an upper band, and a lower band. Upper and lower bands range widths are calculated by adding and subtracting a standard deviation from the Moving Average. The main function of the Bollinger Bands indicator is to measure the market's volatility. The general interpretation is that whenever the bands expand, […]

Explanation of Moving Averages Indicator

Moving Average is the one of the simplest and most used technical indicators. The way it works is by presenting price of an asset in a more approachable manner. Different kinds of Moving Averages are accessible for the user. The essence of this indicator is to reduce spike fluctuations occurring from one candlestick to another, so that the produced line can easily be used to identify emerging trends. The most basic Moving Average is the Simple […]

Parabolic SAR Explained

Parabolic SAR indicator which stands for stop and reversal, is a trend indicator. It tells traders about price stop and reverse points as well as trend direction. The concept of usage is easy to understand. Developed by Welles Wilder, Parabolic SAR appears as a set of dotted lines, where each dot represents a certain time period. One of the most important aspects to keep in mind is that the positioning of the dots is used by traders […]

Support and Resistance Trend Lines — Bollinger Bands

Bollinger Bands are essentially the SMA in the shape of a channel rather than a single line. Because they combine the traits of both channels and simple Moving Averages, they tell us about both support and resistance, and momentum. What are the advantages of BBAs over channels? They are better for anticipating the crowd moves. Like momentum averages, they are plotted by an objective calculation. They tell us about potential support and resistance […]

What Is the Average Directional Index — ADX?

In this video, you will learn about “ADX (Average Directional Index) — Short Term Forex Trading Strategy”. How many times have you entered into a trend only to find out that it has already run its course and you were too late. Many of the Forex trading strategies that we use help us predict which way the market is trending and whether to expect […]

What Is an Oscillator?

An oscillator is a technical analysis indicator that varies over time within a band above and below a center line, or between set levels. Oscillators are used to discover short-term overbought or oversold conditions. Oscillators are most advantageous when a clear trend cannot be easily seen in a company's stock such as when it trades horizontally or sideways. Oscillators represent another widely used group of technical analysis indicators. They […]