Friday, September 25, 2009

Forex Technique that proven works

I recently just found few Forex Technique that works, please do check

Moving Average Based Indicators

MACD also called (Moving Average Convergence Divergence)
The MACD indicator is the charts of the convergence and divergence which short term and long term moving averages. This seems complicated. MACD shows graphically when the short term movements of price rise even if it is slightly or fall faster than the longer moving average would suggest in normal state. This indicates the recent trend that can help determine forex.

Moving Average Envelopes
The Moving Average Envelope is the indicator that creates parallel lines to a moving average at certain percentages for example 5 percent. The lines create a band that can help measure price volatility and extremes in normal state.

Moving Average
The Moving Average is the most basic technical indicator that almost everyone use. when it comes to technical analysis. It is used to identify trends, as it smoothes price action into a single line chart or diagram. The Moving Average gives basic trading signals when price crosses them.

other than those, we also have Volume Based

Volume Based Indicators

Volume is very important to technical analysis in forex industry because it measures the the amount of buyers and sellers responsible that works behind market moves. If a currency pair has a strong price move either up or increasing in price or down or drop in value, the perceived strength of that move depends on the amount of volume for that period.

This volume is also important, it is indicator that tries to gauge supply and demand for a currency pair by discovering if investors are generally will do most of their transaction as “Accumulating” (buying) or “Distributing” (selling) the pair.

On Balance Volume
On Balance Volume measures positive and negative money flow from normal state into currencies and acts as a leading indicator that may predict upcoming price changes.

Chaikin Money Flow
Chaikin Money Flow is an oscillating version of Chaikin's earlier indicator, Accumulation/Distribution. Both accumulation and distribution indicators measure the degree to which money is flowing into or out of a currency pair. this indicator will play imprtant role to your forex analysis