Tag Archives: Forex Indicators

Bollinger Bands – Using The Bollinger Bands Guide

Bollinger Bands are a technical analysis forex indicator that became famous in 1980. John Bollinger is credited with the invention of this indicator.

Overbought and Oversold conditions are the primary use of Bollinger Bands in the forex markets. It is a popular tool that is widely used in forex trading but especially in stock trading. Much of the foundation of Bollingers work was based on the research of Hurst, who did research on trade envelopes in 1970.

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Simple Moving Average – Ways To Utilize The SMA Indicator

We point out that the simple moving average is line produced by calculating the average of a set number of period points. For example, to calculate a SMA of 10 on the daily charts, simply find the closing prices of the 10 newest daily bars along with average them. This creates a single point on the chart.

On the 11th day, the oldest period point is removed from the series while the newest day is added. This is done over and over again. It is an ideal indicator for long term trends as each point in the series is given equivalent weight. It is universally used for that purpose in forex trading strategy.

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Fibonacci Retracement – A review About Fibonacci Retracement

Fibonaccy retracements are a favorite of forex traders that use technical analysis to determine support and resistance levels in the market. It is generally applied to traders forex trading strategy.

Fibonacci retracements are based of a sequence of numbers that were found by the renowned thirteenth century mathemetician, Leonardo Fibonacci. Fibonacci ratios are utilized to divide the area between two points (high and low). These ratios are 23.6%, 38.2%, 50%, 61.8% and 100%..

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