Posts Tagged ‘indicator’

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How to Use Bollinger Bands — Trading Strategy

In this video, we will discuss about Bollinger Bands. We will focus on how to trade them using trends and trend reversals. But firstly, in terms of their construction, this indicator is made up of 3 lines. The center line is a simple moving average, The distance between the center line and the outside lines are measured in terms of standard deviation. So, firstly, when we get into trends, we […]

Forex — Stochastics Indicator

Stochastics is actually a technical indicator used to measure overbought versus oversold. Now, there is another application that is really more for trend traders, that is momentum. But stochastics is actually a Greek word for random. When price go to a higher range or a lower range, get too far stretched, there is a reversion to the mean. Let's look at this chart. We have the stochastics indicator with […]

Forex Trading — Average True Range — ATR Indicator

The Average True Range or ATR is a volatility indicator. It measures the range of the session in pips and then determine the average of that range over a certain number of sessions. For example, if using a daily chart with a default setting of 14, the ATR will measure the average daily range from high to low of previous 14 days. So, take a look here as the current ATR in the daily chart shows the reading of 0.0153. That means […]

Forex Trading — Average Directional Index Indicator

The Average Directional Index or ADX is a directional movement indicator and is used to measure the strength and direction of a trend. It consists of 4 main components, the ADX line, the +DI line, the -DI line, and the level at 20. Let's take a look on how to use this in your trading. First of all, the ADX is great to determine if the pair is in a range or trending. The ADX line values below 20 suggests that the price is […]

Forex Trading — Ichimoku Kinko Hyo Indicator

Ichimoku is a momentum indicator that identifies trend direction, support and resistance, and provides trading signals. It consists of four main components, the tenkan-sen line, kijun-sen line, chikou span, and kumo cloud. As most of the similar indicators, you look for a line crossover, to find your entries. For a long entry, you are looking for the tenkan-sen line cross above the kijun-sen line. For short entry, you are looking for tenkan-sen line cross […]

Know About MACD Indicator

Moving average convergence divergence is a trend-following momentum indicator that shows the relationship between two moving averages of prices. The MACD is calculated by subtracting the 26-day EMA from the 12-day EMA. A 9-day EMA of the MACD, called the signal line, is then plotted on top of the MACD, functioning as a trigger fro buy and sell signals. There are three common methods used to interpret the MACD. Crossovers — As shown in the chart above, when […]

Know About RSI Indicator

The relative strength index (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset. It is calculated using the following formula: RSI = 100 — 100 (1+RS*) *Where RS = Average of x days' up closes / Average of x days' down closes. At the bottom of the chart below, the RSI, on a scale of 0–100, indicates that the overbought […]

Know About Bollinger Band

A Bollinger Band is a band plotted with two standard deviations away from a simple moving average, developed by famous technical trader John Bollinger. Bollinger Bands consists of a middle band with two outer bands. The middle band is a simple moving average that is usually set at 20 periods. A simple moving average is used because the standard deviation formula also uses a simple moving average. […]

Effective Forex Reversal Indicator

In this video tutorial, we will be talking about forex reversal indicators. Why reversal indicators? Enter a trade at the beginning of a new trend. Prevent yourself from getting into a losing trade. MACD: Basically, it is a reversal indicator When the MACD histogram shortens, it tells us that the price is going reverse So, the MACD indicator is a very good tool to tell us the price is […]

Install an Indicator in MetaTrader 4 (MT4)

In this video, we will look at how to install an indicator in the MetaTrader platform. This video assumes that you have an indicator already downloaded. You have to download the file to the correct location. Local Disk C:\ Program Files Name of your broker. Experts. Indicators. If you have MetaTrader open, please close it. Restart MetaTrader to refresh the list of Expert Advisors and indicators. To apply the file you have just […]

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