Forex Indicators Articles
Understanding the Aroon Indicator
Although it’s less commonly known that the MACD, Stochastic or the RSI, this oscillator can be a rather interesting trend indicator. Actually, the Aroon-developed relatively recently in 1995-measures momentum, though it is a fairly good gauge of the strength and quality of trends.
Two Types of Forex Indicators – Leading and Lagging
Forex trader needs indicators to determine important entry and exit points. Forex Indicators predict financial and economic trends. Forex indicators can be categoried into two types, each of which makes a different prediction.
Relative Strength Index - Forex Technical Indicator
RSI ( Relative Strength Index) was introduced in 1978 by Welles Wilder. Another name for RSI which is widely used is price-following oscillator. When you look at Relative Strength Index it closely reminds you of stochastics.
Forex Indicators - Stochastics
Let’s take a look at another forex indicator – Stochastics. Stochastics indicator was developed in late 1950s by George Lane. It is designed to hint us when the trend might end.
Parabolic SAR Indicator
Parabolic SAR was developed by J Welles Wilder in 1976 and is a useful trend indicator in technical analysis. While most of indicators show us the beginning of a new trend, parabolic SAR points to the end of a trend.
MACD Indicator in Forex Trading
MACD is very widely used indicator in forex technical analysis. MACD stands for Moving Average Convergence Divergence and it is among us since 1981 when it was first discovered by Gerald Appel. As a forex trader you main agenda is to find a new trend and MACD is exactly the right tool to do so. MACD is used to indicate a new trend by identifying moving averages.
Bollinger Bands - Technical Analysis and Forex Indicators
Bollinger Bands are very popular technical indicators among forex traders. The man responsible for the idea is John Bollinger – he created this technical trading tool in early 1980s.
Moving Averages in Forex
Moving average is yet another indicator used in forex trading to forecast the next price movements. The word "average" already points to the main idea behind the moving average indicator – to show the average value of the price changes. In other words, moving average "flattens" out the price slop over a certain set of values.