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 [...]

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