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Forex Technical Indicators

Published Jun 13, 2013 in Business & Management
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Indicators are widely used in technical analysis to predict changes in stock trends or price patterns.

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Presentation Slides & Transcript

Presentation Slides & Transcript

Using Technical Indicators

Due to having a good understanding in the psychology of market Bill Williams developed his own method of trading which is based on meanwhile using a rational approach to the analysis of the market and the irrational logic of chaos. 
To understand the overall structure of the market B. Williams advised to analyze the market through the following five dimensions:
Fractal (phase space)
The driving force (energy phase)
Acceleration / deceleration (power phase)
Zone ( combination of strength / power phase)
Balance Line

And to understand and analyzing these dimensions there have been established a number of indicators.





To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/bill-williams-indicators

THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING, "GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE SIGNALS FOR OPENING A RISK-BASED BALANCED POSITIONS.

Acceleration/Deceleration (AC) Oscillator:

Acceleration/Deceleration (AC) technical indicator signals the acceleration or deceleration of the current market driving force.
The indicator is fluctuating around a median 0.00 (zero) level which corresponds to a relative balance of the market driving force with the acceleration. Positive values signal a growing bullish trend, while negative values may be qualified as a bearish trend development. The indicator changes its direction before any actual trend reversals take place in the market therefore it serves as an early warning sign of probable trend direction changes.





AC bar chart is the difference between the value of 5/34 of
the driving force bar chart and 5-period simple moving average,
taken from that bar chart.
AO = SMA(median price, 5)-SMA(median price, 34)
AC = AO-SMA(AO, 5)




To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/ntx-indicators-accelerator-decelerator-oscillator







THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING, "GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE SIGNALS FOR OPENING A RISK-BASED BALANCED POSITIONS.

Acceleration/Deceleration (AC) Oscillator:

Alligator is an indicator designed to signal a trend absence, formation and direction. Bill Williams saw the alligator's behavior as an allegory of the market's one: the resting phase is turning into the price-hunting as the alligator awakes so that to come back to sleep after the feeding is over. The longer the alligator is sleeping the hungrier it gets and the stronger the market move will be.
The indicator consists of 13-, 8- and 5-period smoothed moving averages shifted into the future by 8, 5 and 3 bars respectively which are colored blue, red and green representing the alligator’s jaw, teeth and lips.
The Alligator is resting when the three averages are twisted together progressing in a narrow range. The more distant the averages become, the sooner the price move will happen.


MEDIAN PRICE = (HIGH + LOW) / 2
ALLIGATORS JAW = SMMA (MEDEAN PRICE, 13, 8)
ALLIGATORS TEETH = SMMA (MEDEAN PRICE, 8, 5)
ALLIGATORS LIPS = SMMA (MEDEAN PRICE, 5, 3)




To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/alligator












THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING, "GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE SIGNALS FOR OPENING A RISK-BASED BALANCED POSITIONS.

Acceleration/Deceleration (AC) Oscillator:

Awesome Oscillator (AO) is a momentum indicator reflecting the precise changes in the market driving force which helps to identify the trend’s strength up to the points of formation and reversal.
There are three main signals which may be seen:
Saucer - three consecutive columns above the nought line the first two of which must be colored red, while the third one is colored green and higher than the previous (second) one.
Nought line crossing - the histogram crosses the naught line in an upward direction changing its values from negative to that of positive ones. In this situation we have a Buy signal.
Two pikes - the indicator displays a Buy signal when the figure is formed by two consecutive pikes both of which are below the naught line and the later-formed pike is closer to the zero level than the earlier-formed one. The Sell signal would be given by the reverse formation.


Awesome Oscillator is a 34-period simple moving average,
plotted through the central points of the bars (H+L)/2, and
subtracted from the 5-period simple moving average, graphed
across the central points of the bars (H+L)/2.
MEDIAN PRICE = (HIGH+LOW)/2
AO = SMA(MEDIAN PRICE, 5)-SMA(MEDIAN PRICE, 34)

To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/awesome-oscillator




THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING, "GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE SIGNALS FOR OPENING A RISK-BASED BALANCED POSITIONS.

Acceleration/Deceleration (AC) Oscillator:

Fractals is an indicator highlighting the chart’s local heights and lows where the price movement had stopped and reversed. These reversal points are called respectively Highs and Lows.

Fractals are formed around a group of five consecutive bars the first two of which are successively reaching higher (or diving deeper) and the last two descending lower (or growing higher) with the middle one being the highest (or the lowest) result in the group accordingly.
Buy fractal is an arrow pointing to the top
Sell fractal is an arrow pointing to the bottom











To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/fractals













THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING, "GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE SIGNALS FOR OPENING A RISK-BASED BALANCED POSITIONS.

Acceleration/Deceleration (AC) Oscillator:

The Gator Oscillator (GO) is a supplement to the Alligator indicator and is used alongside with it showing the absolute degree of convergence/divergence of the Alligator's three SMAs pointing at the Alligator's periods of slumber and awakeness (i.e. trending and non-trending market phases).

The Alligator's activity periods are divided into the following four:
Gator awakes - the bars on different sides of the naught line are colored differently.
Gator eats - green bars on both sides of the naught line.
Gator fills out - single red bar during the "eating" phase.
Gator sleeps - the bars on both sides are red











To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/gator-oscillator












THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING, "GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE SIGNALS FOR OPENING A RISK-BASED BALANCED POSITIONS.

Acceleration/Deceleration (AC) Oscillator:

The MFI is designed to indicate how much of a willingness to move the price is there in the market.
Green bar - both MFI and volume are up. Increasing trading activity means market movement acceleration. We may join the trend.
Blue bar - MFI is up, volume is down. The movement is continuing although the volume has dropped. The trend will soon be reversing.
Pink bar - MFI is down, volume is up. The slowing down movement while volume is raising may indicate a possible break through, often a U-turn.
Brown bar - both MFI and volume are down. The market is no longer interested in the current direction and is looking for signs of a future development.





BW MFI = (HIGH-LOW)/VOLUME




To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/market-facilitation-index












THANKS FOR ATTENTION
BEST REGARDS,
IFC MARKETS