What Is The ADX & How To Trade With It

ADX Indicator Explained

Welles Wilder was a successful designer of many trading indicators that passed the practice test. With his extensive market experience, Wilder knew that the crucial factor for retail was to create the right framework. But how do you grasp the structure? The ADX indicator is Wilder’s answer. Wilder developed the Average Directional Index (ADX) as an indicator for the interpretation of the market environment. Essentially, it informs you about the direction of the market. The ADX is a trend strength indicator because it shows how strongly a trend is developing and the possible direction in which the market is moving. …READ MORE

What Is The Parabolic SAR & How To Trade With It

Parabolic SAR Indicator Explained

Wells Wilder first described the parabolic formula in 1978 in his book “New Concepts in Technical Trading Systems”. Wilder was looking for a system that could capture most of the gain in the trending market without relying on any external methods of retaining income. Parabolic calculations give a series of tracking stops, which, if triggered, signal a trend reversal. Stops are recounted daily (or for each period you use) and become closer as the trend progresses. What is parabolic SAR? Parabolic sets moving price stops for long or short positions. Also called an indicator of stops and turns (the full …READ MORE

What Is The CCI & How To Trade With It

CCI Indicator Explained

Some of the most experienced forex traders are constantly learning new techniques to help improve their trading knowledge and skills. Today we will talk about another useful oscillator – the Commodity Channel Index – CCI indicator. The Commodity Channel Index was created back in the 1980s by the famous trader Donald Lambert. What is the CCI indicator? The Commodity Channel Index (CCI) belongs to the category of oscillators; it can predict price change and fluctuation within a specific trading range. The indicator is more suitable for working in the sideways channel, that is when there is no pronounced trend on …READ MORE

What Is The RSI & How To Trade With It

RSI Indicator Explained

The Relative Strength Index was developed by Welles Wilder and published in 1978 in “New Concepts in Technical Trading Systems”. It is an oscillator that shows overbought and oversold market situations and, through divergences, provides further indications of possible upcoming trend change. The oscillator ranges between 0 and 100, values ​​over 70 are considered overbought, and values ​​under 30 are oversold. Occasionally, there is information in the literature according to which values ​​greater than 80 in bull markets, and values ​​below 20 in bear markets should be used as extreme zones. What is the RSI indicator? In this context, the …READ MORE

What Is The Stochastic Oscillator & How To Trade With It

Stochastic Oscillator Explained

George Lane, president of Investment Educators Corporation, developed the Stochastic Oscillator indicator in 1950s. All calculations were manually performed, and a group of traders had formed formulas for oscillators, sequentially giving them the names % A, % B, % C, etc. Only three were operational: % K, % D and% R. What is the Stochastic Oscillator indicator? The % K and % D are the first two curves known as stochastic Lane, and the last (% R) is named after Larry Williams. Another variant of the origin of the names of the stochastic indicator lines: % K – from the …READ MORE

What Are Bollinger Bands & How To Trade With Them

Bollinger Bands Explained

The invention of the Bollinger Bands indicator belongs to the American analyst John Bollinger, who in 1984 set out to create his system for analyzing and calculating investments. Having spent about seven years on this, in the early 90s, Bollinger introduced his method to the investment and trading community. Quite quickly, the indicator gained popularity among market participants, and was adopted by many traders and is still used today. Currently, John Bollinger is the owner of the financial company Bollinger Capital Management Inc., which utilise the methods developed by him. What is the Bollinger Band Indicator? The idea of ​​Bollinger …READ MORE

What Is The MACD & How To Trade With It

MACD Moving Average Convergence Divergence

The MACD (Moving Average Convergence / Divergence) is a momentum indicator, launched in 1979 by Gerald Appel. The MACD calculates the difference between two exponential moving averages (EMA) and displays them in the form of a line. Most of the time, the MACD has an additional signal line (trigger). The MACD indicator can be used to define trend direction, strength, and several signals to buy or sell. What is the MACD indicator? As already mentioned, the MACD consists of 2 lines that are calculated independently of each other. The first line (blue line) subtracts the 2 exponential moving averages from …READ MORE

What Are Moving Averages & How To Trade With Them

Forex Moving Averages Explained

The moving average is one of the most used statistical indicators in forecasting price of trading instruments. In this article, we are going to explore moving averages and their effective use in forex trading. What are the moving averages? Moving average is the average price of an instrument over a period of time. It is shown as line on a chart. The moving average line results from the average price over a certain number of periods. As a rule, the closing price of a respective candlestick is considered. Let’s look at the moving average for 20 periods on a five-minute …READ MORE

Best Forex Indicator

If you have been searching around for the best forex indicator then this should get your attention! I am tired of seeing the same old recycled forex indicators that tell you the exact same thing just in a different way. Read on to know exactly what forex indicator is one of my favourites and is a very unique forex indicator to use in your MetaTrader 4 trading platform. How we are taught to trade forex Dont get me wrong the above chart is an extreme example but how on earth can people trade with so many conflicting indicators is beyond …READ MORE