When it comes to centralized trading, such as equity trading, information on traded volumes is public and easily accessible. This is not the case with foreign exchange markets, which are decentralized. Trading data is not aggregated – there is no information on the number of trades and their monetary volume. Are volume indicators meaningless in forex trading then? No, on [...]


Volatility Indicators

Changes in the price of an asset may be insignificant for a long time – for example, an average daily change of 0.05%. If a 1% change occurred one day, it would be a huge difference from normal. There would be increased volatility, and technical indicators would represent it graphically. In investing, volatility is often seen as an indicator of [...]


Momentum Oscillators

Oscillators are a type of indicators. They are widely used in technical analysis. They can determine trend strength (momentum). Another common interpretation is related to the so-called "overbought" and "oversold" zones when oscillators can signal a potential reversal.  For technical analysis purposes, momentum oscillators are usually located in a separate window below the price chart, which facilitates comparison between the [...]


Intro to Indicators and Oscillators

Countless indicators come to support technical analysts. They are essentially mathematical formulas applied to price data. It is important for every trader to understand the way indicators are calculated in order to properly assess the possibilities and limitations of the signals they generate. Indicators can be conventionally categorized as trend, momentum, volatility, and volume indicators. "Trend followers", as the name [...]


Moving Averages

Simple moving average (SMA): If EUR/USD had closed in each of the last 10 days at price of 1.10, the current value of the SMA would be 1.10. However, if 5 days closed at 1.10 and another 5 days at 1.20, the average would be 1.15. With each successive day, a new number would be added and the oldest one [...]


Trend Lines

Trend lines are one of the most commonly used tools of technical analysis. As the name suggests, they follow the trend. Therefore, trend lines can be ascending, descending or sideways. At least two bottoms or two tops are needed to construct a trend line. When prices are rising, a line is constructed through the bottoms to act as support. In [...]


Support and Resistance

The concept of supports and resistances is the base of technical analysis. When certain price levels are reached, the currency pair will experience fluctuations, resulting in a possible trend reversal. When prices are falling, they will encounter supports. Buying interests are concentrated around these values, which can put an end to the decline. During a rise, prices encounter resistances. That [...]


Price Patterns

Every technical analyst feels confident when recognizes a chart pattern that has encountered many times before. Discovering a familiar configuration creates expectations about the future price changes. Traders build their trading plan on this forecast. Patterns can be categorized as reversals and continuations. Below we will describe their more common representatives. Reversal Chart Patterns Head and shoulders This is the most [...]


Price Channels

Prices often move between two parallel trend lines, forming price channels. Reaching one trend line is followed by a bounce to the parallel one, creating a channel of support and resistance. In an upward trend, the main line passes through the lows, after which a parallel one is built through the highs. The price channel remains valid until the support [...]


Pivot Points

Pivot points represent key price levels for a given currency pair. The main pivot point (base) is the average of the last high, low and closing prices. This value will act as support or resistance in the next period. If the pivot point is below the current quotes, it will support prices. If it is above the quotes – it [...]

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