Posted by: Corakus
« on: January 18, 2024, 04:45:38 AM »It is said that forex indicators are a trader's dead friend. Because no matter how the price changes, the truth is always reflected by these indicators. Currently, in various trading programs, there are often many forex indicators for traders to choose from. But with this kind of abundance, we are often confused and don't know what to choose. Especially for new traders who still don't know what forex indicators are or how they can be used.
With these problems In this article, we will invite you to discuss the meaning of forex indicators, including introducing different types of forex indicators that new traders should get to know in order to stay away from high-rises.
What are Forex Indicators?
Indicators forex are technical indicators used to indicate certain values. That usually includes variables such as opening price, highest price, lowest price, closing price and trading volume. Let's calculate and display the values as graphs. To make it easier to analyze and make decisions for traders As said Prices can be deceiving. But statistical data often cannot be fooled. And this makes this tool become one of the important tools for technical analysis (Technical analysis) by default.
Indicator forex introduces different types that you should know.
There are several classifications of indicators. But for grouping the main types of indicators that make it possible to see the strengths of each indicator, they can be divided into Indicators that help indicate trends (Trend Indicators), indicators that help indicate momentum (Momentum Indicators), indicators that help indicate price fluctuations (Volatility Indicators) and indicators that are analyzed from Trading Volume (Volume Indicators)
1. Trend Indicators: Trend indicators
This indicator is a Lagging Indicator. It is used to indicate what trend the market is currently in, whether it is up, down or no trend (sideway).
Trend indicators are often calculated based on historical average prices, including well-known indicators such as Moving Average (MA), Exponential Moving Age (EMA), Parabolic SAR, Average Directional Index (ADX) and Moving Average Convergence Divergence (MACD).
2. Momentum Indicators: Momentum indicators.
Momentum indicators are Leading Indicators that measure the rate of price change or the acceleration of price movement in a given time frame. Some of these indicators may be called oscillators that move in a time frame. Values 0 – 100 can also be used.
Well-known Momentum indicators such as Relative Strength Index (RSI), Stochastic and Ichimoku Cloud.
3. Volatility Indicators: Indicators indicate price fluctuations.
The price volatility indicator is a Lagging Indicator that measures the width of the price within a specified period. The more the price moves within a wide range, That indicates that during the observed period the price was highly volatile. This price fluctuation does not indicate the direction of the price. It just indicates the price range only.
Volatility Indicators that we know well, such as Bollinger Bands
4. Volume Indicators: Indicators based on trading volume.
Indicators based on trading volume can be either Leading or Lagging Indicators. It is the one that tells the trading volume at that time whether there is buying or selling.
Well-known Volume Indicators such as On-Balance Volume (OBV) and Chaikin Money Flow.
With these problems In this article, we will invite you to discuss the meaning of forex indicators, including introducing different types of forex indicators that new traders should get to know in order to stay away from high-rises.
What are Forex Indicators?
Indicators forex are technical indicators used to indicate certain values. That usually includes variables such as opening price, highest price, lowest price, closing price and trading volume. Let's calculate and display the values as graphs. To make it easier to analyze and make decisions for traders As said Prices can be deceiving. But statistical data often cannot be fooled. And this makes this tool become one of the important tools for technical analysis (Technical analysis) by default.
Indicator forex introduces different types that you should know.
There are several classifications of indicators. But for grouping the main types of indicators that make it possible to see the strengths of each indicator, they can be divided into Indicators that help indicate trends (Trend Indicators), indicators that help indicate momentum (Momentum Indicators), indicators that help indicate price fluctuations (Volatility Indicators) and indicators that are analyzed from Trading Volume (Volume Indicators)
1. Trend Indicators: Trend indicators
This indicator is a Lagging Indicator. It is used to indicate what trend the market is currently in, whether it is up, down or no trend (sideway).
Trend indicators are often calculated based on historical average prices, including well-known indicators such as Moving Average (MA), Exponential Moving Age (EMA), Parabolic SAR, Average Directional Index (ADX) and Moving Average Convergence Divergence (MACD).
2. Momentum Indicators: Momentum indicators.
Momentum indicators are Leading Indicators that measure the rate of price change or the acceleration of price movement in a given time frame. Some of these indicators may be called oscillators that move in a time frame. Values 0 – 100 can also be used.
Well-known Momentum indicators such as Relative Strength Index (RSI), Stochastic and Ichimoku Cloud.
3. Volatility Indicators: Indicators indicate price fluctuations.
The price volatility indicator is a Lagging Indicator that measures the width of the price within a specified period. The more the price moves within a wide range, That indicates that during the observed period the price was highly volatile. This price fluctuation does not indicate the direction of the price. It just indicates the price range only.
Volatility Indicators that we know well, such as Bollinger Bands
4. Volume Indicators: Indicators based on trading volume.
Indicators based on trading volume can be either Leading or Lagging Indicators. It is the one that tells the trading volume at that time whether there is buying or selling.
Well-known Volume Indicators such as On-Balance Volume (OBV) and Chaikin Money Flow.