Tutorial 4: A Forex Chart 10 minutes.

All about Technical Analysis

Tutorial 7: Short Selling 7 minutes. Tutorial 8: Forex Brokers 4 minutes. Tutorial 9: Forex Market Hours 8 minutes. Quiz 1 - Forex Basics 5 minutes. Quiz Answers - Forex Basics a few seconds. Section 2: Forex Acronyms and Jargon. Tutorial Ask and Bid Prices 2 minutes. Tutorial What is Spread? Tutorial Pips and Points 2 minutes. Tutorial 5-Digit Quotations 6 minutes. Tutorial What is a Lot? Tutorial What is Leverage? Tutorial What is a Take Profit? Tutorial What is a Stop Loss? Section 3: Forex Analysis.

Tutorial Three main types of Analysis a minute. Tutorial Fundamental Analysis 2 minutes. Tutorial Technical Analysis 3 minutes. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance.

4 Types Of Technical Indicator You Need When Trading Forex

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These choices will be signaled globally to our partners and will not affect browsing data. Typically, you should be looking for buying opportunities when RSI crosses below 30 and look for selling opportunities when it crosses above Here are some examples of RSI based trading strategies. You can try them out and let me know what you think. From the results above, you can see how low the win rate is for this indicator. It is smoothed because it uses exponential moving averages and as thus, it is more consistent that other oscillators. It is very popular — many traders watch it, hence a lot of orders might go in at the RSI levels.

The Stochastic indicator is a momentum indicator which is often used by traders to compare the closing price of assets to its price range over a specific period of time. H14 and L14 are the highest and the lowest price traded during 14 previous trading sessions respectively. Like its brother the RSI, stochastic is also a lagging indicator. It gives its signal after the move has already happened and is not reliable in real time.

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It is a momentum indicator. When the indicator crosses above 80 that does not mean that the asset is overbought. When it crosses below 30 that does not mean it is oversold. Only sell that market once the indicator crosses below the 80 line and is confirmed by a leading indicator. We will gauge its reliability by considering these 20 trades. The higher the accuracy the more reliable it is. Biggest advantage : Used with price action and support and resistance levels, it can help a trader catch a good trade.

What is technical analysis?

Biggest disadvantage : It is a lagging indicator meaning that it shoots its signal after the move has happened. A Bollinger band is a very popular indicator that is often used by traders to trade. It is a momentum indicator which can be used to check if the market is trending or ranging. Bollinger bands comprise three lines- a simple moving average often called the middle band and two lines outer bands plotting two standard deviations positive and negatively away from the middle band.

Bollinger bands are lagging indicators because they give their signal long after the move has happened.

An Introduction to Forex Technical Analysis

As mentioned, there are many ways of trading using the Bollinger bands. Personally, I trade it as follows:. Buy if a full candle completes above the simple moving average middle band with stop loss below the high of the previous candle. Sell if a full candle completes below the simple moving average middle band with stop loss above the high of the previous candle. Note: Bollinger bands work best in trending markets but can be used with a leading indicator to trend both ranging and trending markets.

Biggest Advantage: Can be used with leading indicators to catch nice moves in the market. Biggest disadvantage: It is a lagging indicator and thus, it should not be traded alone. The Ichimoku cloud also known as the Ichimoku Kinko Hyo indicator can be used to determine support and resistance, trend direction and momentum for an asset.

Complicated yes? No need to scratch your head doing all these. Your charting platform will do it for you. Signals and Strategies generated. Based on the results above, you can clearly see that this indicator gives more losing trades than winning trades. Biggest advantage: Ichimoku cloud is an all-in-one technical indicator meaning that it can be used alone to make trading decisions.

Biggest disadvantage: Ichimoku Cloud gives its signal long after the real move has happened. MACD is a powerful indicator that is often used by traders to check for price momentum, price trend and direction.

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6. Leading indicators are different.
7. Technical Analysis: A Primer.

This awesome indicator has three components, two moving averages signal line and MACD line and a histogram. This calculation uses the closing prices for the two EMAs. Then a 9-day EMA is added to give the signal line. MACD is a lagging indicator meaning that it gives its signals long after the real move has already happened. The various components of this versatile indicator can be used to gauge price momentum, price trend and direction. There are many different MACD trading strategies.

Let us look at an example of such strategies. Divergence happens when price action is doing the exact opposite of what the MACD is doing. For example, if price is forming lower lows and MACD is forming higher lows, this indicates the formation of a strong bullish signal and the opposite can be considered for a bearish signal.