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- Forex Technical Analysis
- Technical Indicators
- Trend Indicators
Forex Trend Indicators
One of the main tools for traders while doing technical analysis in Forex market are trend indicators. This set of indicators as a result of its inertia is often used during a trending market to
indicate the direction of price movement.
Most of Trend Indicators of the group are calculated from averages and smoothing the price series. While in form this type is a lagging indicator, that is, indicates the trend in the past and present, with the help of trend
indicators it’s possible to avoid a lot of false signals, and predict the emergence of new trend in the market.
Average Directional Index - ADX Indicator
ADX is a complex indicator, which results from calculation of the Plus Directional Indicator (+DI – green line) and the Minus Directional Indicator (-DI – red line), but all of them may be used for trend analysis.
Moving Average Explained - What Is Moving Average
Generally moving average curves analysis includes the following principles:
Moving Average of Oscillator - OsMa Indicator
The OsMa is displayed as a histogram - up or down from the zero line. The values of OsMa are positive, if MACD is above the signal line, and negative, if MACD is below the signal line.
Parabolic SAR Indicator
When using Parabolic SAR indicator we should take into consideration its positioning against the price chart as well as its acceleration factor which increases together with the trend. Despite being a popular tool of analysis, it has limitations and may give false signals in frequently changing market conditions.
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