Forex Trading Indicators

Forex is an over the counter market that trades currencies. Unlike the New York Stock Market there is no opening bell or closing bell for the Forex market. Currencies are traded at any time during the day and night. The price of currencies can rise or fall during the day. Traders use indicators to try to determine if a currency will increase or decrease. They use the results of these indicators to try to capitalize in the price fluctuation of currencies.

What is an indicator? An indicator is a chart or graph that tracks movements in data. These indicators are captured in real time. They are used to predict movement - either increasing or decreasing - in a currency's value. Indicators are used to for identifying patterns and trends from the chaos of all the currency market. The two most popular indicators are the moving average and stochastic indicator.

Moving Average

The moving average is a trend indicator. It measures the average move of the price during a given time period. It tracks all trades. The collected data is smoothed out so that market trends and tendencies can be shown. The data is typically shown in graph or chart format.

Stochastic Indicator

The stochastic indicator is a momentum indicator. It is used to compare the current market price to the high and low over a specified period of time. The goal of this indicator is to show when a market is overbought or oversold. If you treasured this article and you simply would like to collect more info pertaining to ninjatrader 8 volume profile please visit the site.

There is not one indicator that is used in currency trading. Traders have a wide range of indicators that they track and utilize the information gleamed from these indicators before making trades. The two most commonly used indicators are the moving average and the stochastic index.

Indicators are used to track different types of information about the Forex market. The information they track provide feedback on a particular aspect of the market. Traders select which index or combination of indexes that they track. Traders follow indicators in order to help them develop a profitable trading strategy.