There is no need to start defining Forex,I will just go straight to indicators and oscillators.
Normaly,in forex trading when trading with candle sticks charts,when you see a black candle forming,it is telling you to place a 'buy' order and when you see a white candle forming,it is telling you to place a 'sell' order.That is the preliminary test,but you use indicators and oscillators for the confirmation test,that is to confirm whether to go along with the candle stick or to place otherwise.
INDICATOR
Parabolic sar- these are dotted lines that form on the chart(you insert them from the 'insert' tab),they form in form of a parabola either below or above the trend(candle sticks line),once they start forming below the trend,it means you should buy and if they start forming above the trend,it means you should sell.
OSCILLATOR
Storchastic lines- these are two lines(red and blue) in oscillation that appear under the trend in candle sticks charts(you insert them from the 'insert' tab) which tell you when the market is overbought or oversold.They have scales ranging from 0-100,when the red line is above 70,the market is overbought,then you sell,and when the blue line is below 30,the market is oversold,then you buy.
Also another type of oscillator is Relative Strength Index(RSI).It is almost the same with Storchastic lines only that it has only one line which oscillates between scales of 0-100,when the is above 80 it means overbought,then you sell,and if it is below 20 it means oversold,then you buy.
No comments:
Post a Comment