Forex Technical Indicators

Learn How To Trade Commodity Channel Index (CCI) In Forex

Details: Written by David Serper

CCI indicator, developed by Donald Lambert stands for Commodity Channel Index and is widely used among forex traders for many different purposes. For example, CCI can be used to provide trading signals from the zero-crossing line, to identify overbought and overbought levels and to spot divergences in currency prices.

Learn How To Trade Fractals In Forex

Details: Written by Jeffery Jonas

The Fractal indicator, invented by Bill Williams is commonly used by forex traders to identify support and resistance levels on the charts. Fractals are composed of five consecutive candlesticks.

Learn How To Trade Aroon Indicator In Forex

Details: Written by Henry Lieu

The Aroon indicator, invented by Chande in 1995 measures trend strength and trend direction in forex trading. The Aroon indicator consists of AroonUp (bullish) and AroonDown (bearish).

Learn How To Trade The Schaff Trend Cycle (STC) In Forex

Details: Written by Peter Bosmans

The Schaff Trend Cycle (STC) indicator, invented by Dough Schaff measures overbought and oversold market conditions. It is an improved version of the traditional MACD indicator.

Learn How To Trade Williams' %R In Forex

Details: Written by Peter Bosmans

The Williams' %R indicator, invented by Larry Williams measures momentum in the forex market. The Williams' %R indicator oscillates between -100 and 0.

Learn How To Trade Pivot Points (PP) In Forex

Details: Written by Peter Bosmans

A Pivot Point (PP) is referred to as a predictive technical analysis tool that is widely used among forex traders. The main purpose of Pivot Point trading is to try to predict the future direction of a currency pair.

Learn How To Trade Bollinger Bands (BB) In Forex

Details: Written by Peter Bosmans

Bollinger Bands (BB), developed by John Bollinger is referred to as an trend following indicator. The main purpose of Bollinger Bands is to determine of whether the currency market is trending, ranging or about to breakout of the trading range. The bands themselves act as support and resistance levels.

Learn How To Trade The Average True Range (ATR) In Forex

Details: Written by Peter Bosmans

The Average True Range (ATR), developed by J. Welles Wilder is referred to as an technical analysis indicator that measures volatility in currency pairs and commodities. It is important to understand that ATR does not provide any forex signals, it only gives you an indication about volatility.

Learn How To Trade Average Directional Index (ADX) In Forex

Details: Written by Peter Bosmans

The Average Directional Index (ADX), invented by J. Welles Wilder is referred to as an oscillator technical analysis indicator. ADX fluctuates between 0 and 100. Readings below 20 show a weak trend while above 40, show a strong trend.

Learn How To Trade Moving Average Convergence/Divergence (MACD) in Forex

Details: Written by Peter Bosmans

MACD, invented by G. Appel is referred to as an oscillator technical indicator. MACD ( Moving Average Convergence/Divergence ) consists of 3 exponential moving averages with default settings Fast EMA (12), Slow EMA (26) and MACD SMA (9).

Learn How To Trade Parabolic Sar (PSAR) in Forex

Details: Written by Peter Bosmans

Parabolic Sar, invented by J. Wellens Wilder is a trend following indicator. The PSAR dots will appear below the price in uptrends while the dots appear above the price in downtrends.

Learn How To Trade The Stochastic Oscillator (Stoch) in Forex

Details: Written by Peter Bosmans

The Stochastic oscillator, invented by George Lane measures momentum in the market and consists of two lines (%D and %K). The Stochastic oscillator oscillates between 0 and 100 while readings above 80 are considered overbought and readings below 20 considered oversold. Values between 20 and 80 are considered neutral.