Indicators

There are many questions that revolve in the mind of the dweller on the analysis of supermarket price of a currency, the primary purpose of the analysis is to reach a certain perception on the direction of movement of the currency in the future, which in some respects kind of predict the unseen!!In order to predict the reach with the utmost accuracy possible, it is necessary to obtain as much information on the price movement, indicators are a means available to answer questions you may revolve in the mind of the shops.What are the indicators?Are the calculations on the price movement prior to compare the current price of a certain angle.Words seem complicated, but it is not.You will be able to understand the indicators and their importance in the analysis and trading when we explain the most important of these indicators:Index moving average Moving averageWhich is one of the oldest and most indicators that are used on a large scale.An indicator shows you the average price during a specific time period you specify.For example: if we assume that the pound is GBP / USD = 1.4000, but you wanted to know how much the rate of the pound during the previous ten hours in order to know whether the price is now higher than the average within 10 hours or less?Can do so through the use of graphs, where the program will draw the line represents the average price within 10 hours.This will be the line on the graph indicates the average price during the last ten hours.How WFP was able to account for it?The Programme has collected the closing price last 10 hours, divided by 10 and the resulting number is the rate of the pound within 10 hours.The collection of 10 hours, section 10 because you chose to ask for a period of 10 hours if you choose to question the average price during the 100 hours to collect the last closing price of 100 hours and divided by 100.Thus, for any period of time you choose.As the price moves per hour and an hour behind the program will collect the closing price last 10 hours and divide by 10.The result will be a moving line shows the price movement of the line rate of the pound for 10 hours prior or any time you chooseWhat is the use of this indicator?This indicator of great benefit in identifying market trends, when you know that the rate of the pound is higher than the rate of price during the previous 10 hours means that there is a demand plus the pound at this time to make its price rise on average within 10 hours.This is a sign that there is a growing desire to buy the pound and therefore signal the possibility of raising it.When the candles rise above the rate of price Moving average this evidence is likely to continue this rise, which means signal to buy the currency direct - because the price will continue to rise and signal to sell the currency is not direct because the high candles means the continuation of a low price.When the candles fall below the rate of price Moving average this evidence is likely to continue this decline, which means a reference to the direct sale of currency because the price will continue to decline and a reference currency for the purchase of indirect because the continuing decline candles means the continuation of the high rate of indirect.The possibility of knowing more than the average in the same period of time.You can ask to know the rate of the pound during the period of 10 hours and at the same time, the rate of price within 30 hours.This will appear in the graph in the form of two lines, one represents the average price within 10 hours and the other represents the average price within 30 hours.You can draw several lines of each line represents the average price during a different period and you can make each line of color so you can differentiate between them just by looking.But what interest to know the average price for two different?To give us a clearer signal to the market trends in the previous example, we have asked of the graph that gives us two lines, one represents the average price for a short period of 10 hours, the other represents the average price for a period longer than 30 hours.Crossover when it crosses the line that represents the shorter period over which the line represents a longer period this is a sign that demand is increasing continuously on the purchase of this coin - that is to sell the currency if indirectly - making the average price within 10 hours higher than the average price within 30 hours.This leads us to buy the currency because the currency will rise more and more with time.If the currency is directly Snabieha that the high candles more and more a sign of the decline in the price currency is not direct.Types rate of movement of price Moving average typeAlthough this topic is dedicated to talk about technical analysis, however, we would like to point out that the price index rate of movement of three main types are here to remind them of the importance of this indicator and help you to study the theoretical view on the indicators.The rate of movement Simple Simple moving average - SMAHe talked about a while ago where the average price is calculated by collecting the closing price for the required period (eg 20 hours) and dividing by the number of periods (20)Which is the normal method to calculate the rate.The result will be is the line represents the average price which gives equal weight to all periods.The rate of movement Composite Exponential moving average-EMAThe same as before, but the formula calculates a certain give more weight to the current periods.The result will be a line as before, but differs somewhat because the latter values ​​have greater weight in the calculation. Which makes it more sensitive to changes in the current price.The rate of movement of heavy Weighted moving average - WMAThe same as before, but the calculated formula also gives greater weight to the current periods and less weight to prior periods.The result will be a line as before, but differs somewhat because the latter values ​​have greater weight in the calculation. Which makes it more sensitive to price changes.

 Which of these species use?
 You can use the kind you see fit for you and give you better results Some traders prefer to deal with the simple average, while others prefer to deal with the composite rate and this question depends on what is desired, shops and the best results depending on which Istnottagha of this indicator.
 How do I choose between these types of indicators and put it on the drawing?
 Issue is very simple when you want to know the rate of price with one click you will be able to identify the type of cursor you want and the time period that you want to know the average price during and color as you want for easy differentiation between the different lines.You'll find clear instructions on how to do so and the whole matter will not take you more than seconds All accounts will be conducted by the program graph and the result will be a line drawn on the chart you will be able to know just by looking at all what you want to know.This is one of the benefits of modern technology!!In the past, and before the spread of computers was the traders who calculate their own rate and add the fonts manually and it takes them to do so time and effort superheroes. In spite of that they were performing this task with enthusiasm for this indicator of great importance.As for you, now you do not need now only a few seconds to see the result is clear, accurate and immediate.
 Do you rely solely on this indicator in buying and selling? When the candles rise above average buy currencies direct and indirect selling currencies and candles when they go down under the average direct and sell currencies buy currencies indirect?
 Of course not .. You can not rely on one indicator that it must relay the results of other indicators and these indicators are consistent when you open the package with greater confidence.Experience and practice is to ensure that shows when you take the opinion of the cursor and when not to take his opinion and agreed that the more indicators that are more on the same opinion that the greater the likelihood of true expectation.What are other indicators that can be resorted to, and pointing to what?There are more than 100 indicators!!
 Does the shop that uses all the indicators in the analysis of price movement?.
 Of course not .. There are dozens of indicators may result in too many of them to confuse the shops indicators give conflicting views may indicate some of them for sale while the other refers to the purchase!Remember when we said
 Let it simple keep it simple!It is not a condition that the use of the largest number of indicators is the right way As we have said may lead to further uncertainty and confusion!There are some traders do not use only an indication of movement and Mac DVD only.There are those who add them RSI and from there focused on the rate of movement and points of support and resistance.Thus, each stores its own way and favored by the indicators and reliable and it depends on style and on practical results.If adopted on a set of indicators in the decisions of buying and selling and results proved the safety of these decisions in general it is better to continue using these indicators and are trying to develop them rather than be used with other indicators might spoil it but if proven practical results of poor outcome of the decisions and the large number of transactions losers is better to look for other indicators and to review your style in dealing with the indicators that you use.It is not the important thing is the number of indicators, but the important thing is the use of indicators use the best and this does not come only through practice and through trial and error and deepen access theory, and so we said, there are a lot of traders are opening virtual accounts to try new methods of trading using the new indicators or by using the methods new in dealing with their indicators favorites.Remember that each new method should be subject to practice on a virtual account Demo account for a long time before using it in the actual calculation.
 What are the main indicators used?As we have said there are dozens of indicators used in technical analysis, but most of these indicators are used:Indicator of the rate of movement Moving averageMac DVD MACD indicatorIndex RSIIndex STOCHASTICIndex PARBOLIC SARIndex BOLLINGER BANDSIndex AVERAGE TRUE RANGEIndex WILLIAM PERCENT RANGES