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Forex Trend Indicators

Published Jun 14, 2013 in Business & Management
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One of the main tools for traders while doing technical analysis in Forex market is trend indicator.

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Presentation Slides & Transcript

Presentation Slides & Transcript

Forex Trend Indicators

One of the main tools for traders while doing technical analysis in Forex market is trend indicator. 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 the 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.





















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

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:

Average Directional Index (ADX) is a technical indicator developed by Welles Wilder to estimate trend strength and determine probable further price movements by comparing the difference between two consecutive lows with the difference between the highs.
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.






ADX = MA [((+DI) – (-DI)) / ((+DI) + (-DI))] x 100;
where:
+DI – Plus Directional Indicator;
-DI – Minus Directional Indicator.





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







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:

Moving Average is a technical analysis tool that shows average price over a given period of time, which is used to smoothen price fluctuations and therefore to determine trend direction and strength.
Depending of the method of averaging, distinguish between simple moving average (SMA), smoothed moving average (SMMA) and exponential moving average (EMA).







SMA = Sum (Close (i), N) / N,
where:
Close (i) – current close price;
N – period of averaging.
EMA(t) = EMA(t-1) + (K x [Close(t) – EMA(t-1)]), 
where:
t – current period;
K = 2 / (N + 1), N – period of averaging.



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












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:

Moving Average of Oscillator (OsMA) is a technical analysis tool that reflects the difference between an oscillator (MACD) and its moving average (signal line).
Usage
Extremum points:
OsMA switching from falling to rising in extreme areas may be a sign of bullish reversal;
OsMA switching from rising to falling may be a sign of bearish reversal.
Crossing zero axis:
OsMA rising above zero (corresponds to MACD crossing from below its signal line) generates a buy signal;
OsMA falling below zero (corresponds to MACD crossing from above its signal line) generates a sell signal.



OsMA = MACD – Signal







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




THANKS FOR ATTENTION
BEST REGARDS,
IFC MARKETS