Tag Archives: Indicators

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Price Action And Understanding Multiple Market Modes Using Trade Station Indicators

Advanced TradeStation indicators can provide multiple time frame (MTF) price action.  Price action is undisputedly the most important fact in trading.  If you use multiple time frames to track price action you will increase the effectiveness of your trading edge many fold.  The interaction of the different time frames provides great information regarding which market mode you are trading.  This article will explain how MTF price indicator will tell you what market mode you are in.   Knowing this will assist you to greatly improve your trade management.

The 3 major market modes are consolidation, trend (up-trend or down-trend), and choppy (a trading range).  Every financial instrument goes through these three market modes on any chart.  The interplay of a multiple time frame price indicator shows at a glance when you are in an up-trend, a down-trend, when you have a MTF consolidation, and/or when you are trading a choppy market.

First, let’s focus on consolidation.  A consolidation can be any of the following types; price, volume, volatility, or oscillating inside a trading range.  Price consolidation across multiple time frames gives the most powerful consolidation breakout trades.  With a MTF consolidation, TradeStation traders can typically get breakouts that will sometimes go on for several days. 
This is a very powerful method of trading.  The MTF Price Action Consolidation trade set-up is present when all the price trend lines are collapsed into a tight range.

The second major market mode is trend.  A MTF up-trend is shown by the expansion of the interaction of the different MTF trend lines.  You’ll see this where the shortest trend line is breaking out to the upside and the MTF lines are fanning out into a ribbon.  But don’t be mistaken; simple moving average ribbons are nothing more than a single time frame indicator using multiple different lagging lines.  Unlike the simple moving average ribbon, a MTF price indicator has nothing to do with lagging lines.  In fact, the MTF trend line lags no more than one and a half bars, and yet it shows a smooth price line.  The interaction between the MTF lines is very useful.

You can also see a MTF trading range.  When you go into a choppy market or a trading range, the interaction of the MTF trend lines will show a trading range inside several higher time frame lines and the shortest line will be oscillating between the longer time lines.

You have a big advantage when you know what market mode you are trading in and know how to appropriately trade that market mode.  With a quick glance at a multiple time frame price action TradeStation indicator, this information will be at your fingertips to advance your trading success.

Forex Trading Articles

Looking at The Best Forex Indicators to Maximize Profits

If you are a novice who has just started trading foreign exchange with the desire to make plenty of money, you should first be aware of the best forex indicators in different categories and their application. If you’re already into this form of trading for quite some time, you should be familiar with the proper combining of forex indicators that can aid you in earning steady profits in the currency market. There are four categories of indicators that are widely utilized by traders and mentioned below.

The first category of the best forex indicators is momentum indicators that are known as strength indicators as well. They indicate the rate of fluctuation of price over a specific time frame. They are similar to oscillators that are able to show whether the foreign exchange market is going through oversold or overbought conditions. In case the indicators attain the overbought area, it signifies that there are tremendous possibilities for the price to descend. On the other hand, if they get to the oversold area, it implies that there is greater chance for prices to ascend. Some of the most popular momentum indicators include Commodity Channel Index (CCI), Relative Strength Index (RSI) and Stochastic.

Devised by Donald Lambert, the CCI indicator is hugely popular for its amazing potentiality and simplicity. The original CCI comprises a solitary line that hovers between +200 and -200. Traders can use it to recognize bullish and bearish market oscillations as well as to determine turning points, strongest and weakest time frames in the market. Experts recommend making use of CCI for entries and exits as soon as the indicator attains +100 or -100.

Trend indicators are the second category of the best forex indicators. Traders should bear in mind that trend is their most trusted companion and they should trade in the direction of the trend only. There are many different trend indicators like Moving Averages, Moving Average Convergence Divergence (MACD), Parabolic SAR, Average Directional Index (ADX), etc. They assist traders in identifying when the trend starts or stops.

The volume indicators are utilized for portraying the amount of trading which happens and reasserting the direction of the trend, a breakout or reversal. The price will go up when the trade volume elevates and low volume may possibly show the reversal in currency trading. If the currency pair is traded in thin range and attains a soaring volume, it shows a breakout. Some widely used volume indicators include Money Flow, Acceleration Bands and Demand Index.

Finally, the fourth category of the best forex indicators is volatility or bands indicators. The alteration in volatility will bring forth an alteration in price. Therefore, traders can discover the activeness of the currency market by observing the price ranges. You shall make an entry into trade if there is favorable fluctuation in price movements that indicate the FX market is active. The most widespread volatility indicators are Bollinger Bands, Average True Range (ATR) and Chandelier Exit.

Forex Trading Articles

Indicators For Forex Trading

Some people find Forex trading very difficult. The reason behind this is because they did not spend adequate time in studying the market trends and they did not conduct thorough technical analysis. Forex charts are very important and you need to know how these charts are developed. As you probably know by now, the Forex market is a fast-paced environment and you need to keep up with it if you want to earn good profits. Technical analysis can definitely help you and so can market indicators.

Indicators are quite helpful especially when you’re about to make a transaction in the Forex market. Most of the time, these indicators provide you with market’s probability behavior but it can’t exactly tell the certainty of currency prices.

Technical indicators are very important in Forex trading. You can combine the indicators to create your very own trading strategy in order to recognize the market trends. As an effective trader, you must be able to identify the current or major trends, the short-trends, and intermediate trends; if you can do this, you will be able to hold a good position in the Forex market where you can earn great profits.

Since the Forex market is changing constantly, you need set a criterion for using the technical indicators. If you want to get the highest probability and accurate predictions, you must be able to combine required indicators. By doing so, you can determine the price behaviors of the currencies you would like to invest on.

Supposing that your judgment is correct, you should still consider other factors in order to gain maximum profits from your trades. If you’re having a bad day in the Forex market, take your profits and stop trading for the moment. This is a smart decision because if you stay longer (hoping to regain your lost money), you might lose more of your investment. When the prices of the currencies are moving within a so-called narrow range and isn’t going anywhere, there is no need to anticipate for a big movement. Find another currency to trade with better profit potentials.

With so many technical indicators to use, you will surely find combinations that will work best for you. Don’t be discouraged if ever you encounter some downfalls in Forex trading because that’s natural. When using technical indicators, you must give yourself enough time in doing the analysis and studies. There are so many things to consider and you can’t just do it in minutes. However, make sure that you don’t take too long in making your trading decisions because the Forex market will not slow down just to work for you. You’re the one who needs to adjust to its fast-paced environment. Keep in mind that there are also lots of traders out there who want to earn profits. You need to keep up with the competition.

Technical analysis is not very easy to do and so you will need all the help you can get. You can consult a broker or some online Forex trading tools if you want to learn more about this kind of trade. The internet is widely available and you can use it to your advantage. Educate yourself about these various technical indicators so that you can use them in identifying the market trends. For successful Forex trading, you must learn about these technical indicators.

Forex Trading Articles

Forex Trading Indicators And The Ever Changing Market Conditions

When ever you will enter in the forex trading market, you will need to use the technical analysis for finding the trends when looking in the forex charts. And also the significance of being alert of when they first develop as you can ride the trend until and unless it ends. The forex trading market is really a very strong trending market.

There is a lot of ups and downs in the short period of times and that is why the technical analysis can be very efficient and effective in the foreign exchange market. You should always remember that the forex trading indicators are only gives you a possibility of the markets behavior might show when you are trading in the market; however it will not let you know the behavior of the currency prices with the total certainty.

The forex trading market is totally a changing market. It never remains unchanged, but it goes on changing and changing all the time. Everyone wants to become a profitable forex trader than there the need of using many technical indicators arises. To become a profitable trader, you need to use many technical indicators as you can.

You can also create a personalized strategy of trading based upon a combination of these indicators in order to recognize with the best exactness possible the trend. The forex trading markets are always of changing nature and due top this there is always as open condition when using your technical indicators.

The markets will be changing as well as of different combinations might be required with time to have the highest probability, most correct and forecast of the future currency price behaviors. Therefore, you must always be aware and open to use many different indicators to stay tuned with the market. By doing this you can become a profitable trader.

Forex Trading Articles

Forex Indicators: Bollinger Bands and Fibonacci Retracements

The Forex trading is an enthralling method of make money online, if you are eager to enter into this enthralling Forex trading platform then you must learn about the indicators that will give you information regarding the Forex trading inflows. The two important indicators are “Bollinger Bands” and “Fibonacci Retracements”.

Bollinger Bands interprets that the prices remain in the two specified ranges of upper and lower bands. The distinct feature of Bollinger bands is that the gaps between the bands diverge with the volatility of the price actions.

During high volatility that is extreme price fluctuation, the bandwidth increases and becomes more tolerant.
During low volatility, the band gaps decreases according the price action at that time instant. The bands are drawn based on the simple moving average and two standard deviations above and below one particular moving average are plotted.

These bands suggest about “sell” position when the prices are greater then moving average and close to the upper band and “buy” position when the prices are less then moving average and close to lower band.
These bands are used by Forex traders for analyzing the market position in combination with RSI, MACD, rate of change and CCI etc.

On the other hand “Fibonacci retracement levels” are a series of numbers revealed by the renowned mathematician Leonardo da Pisa in the 12th century. These number series illustrates cycles found all over in nature and when implemented to technical analysis it helps to find the loopholes if any in the Forex trade.

These levels are quite impressive way to look into the future of Forex trade that is it involves predicting changes in the Forex trends as prices close to the lines drawn by the Fibonacci study.

The prices either used to retrace significantly after a significant price action up or downward trending from the original movement.
Because when the price action retraces, resistance and support levels tends to pause closer to the Fibonacci levels.

These levels can be easily shown by relating a trend line from a high point to an apparent low point. The difference between the high and low points and their ratio can be applied to attain required retracts.

The article provides information on the Forex indicators of “Bollinger bands” and “Fibonacci Retracement levels”. These indicators help to find out the Forex trend lines and anticipate the further movement of the Forex trade.