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jazzz · 11-10-2008, 07:55 AM

Continued..........

Momentum - The Momentum indicator calculates the value of the commodity price shifts during a definite period of time. It is designed to measure the rate of price change, but not the actual price level. This consists of the net difference between the current closing price and the oldest closing price from a predetermined period. The Momentum indicator can be used as either a trend-following oscillator similar to the MACD or as a leading indicator.

MACD - Moving Average Convergence/Divergence - Consists of two exponential moving averages that are plotted against the zero line. The zero line represents the times the values of the two moving averages are identical. The MACD is calculated by subtracting a 26-day moving average of a currency's price from a 12-day moving average of its price. The result is an indicator that oscillates above and below zero. When the MACD is above zero, it means the 12-day moving average is higher than the 26-day moving average. This is bullish as it shows that current expectations (i.e., the 12-day moving average) are more bullish than previous expectations (i.e., the 26-day average). This implies a bullish, or upward, shift in the forex rate. When the MACD falls below zero, it means that the 12-day moving average is less than the 26-day moving average, implying a bearish shift in the currency.
Oscillators: Oscillators represent a useful technical analysis tool for discovering short-term overbought or oversold forex market conditions. Using oscillators can help forex traders notice when the currency is moving into an overbought/oversold situation and consider selling/buying it. The signals that oscillators give are considered to be of greatest value when they are located at the extremes of their scales. Additionally, the crossing of the zero line, when applicable, generally gives direction signals.

I hope this article helped you and enhanced your knowledge for better understanding of forex indicators thus increasing your returns.

11-10-2008, 07:55 AM	#2 (permalink)
jazzz Junior Crapper Join Date: Jul 2008 Posts: 74 My Mood: Thanks: 0 Thanked 1 Time in 1 Post	Re: Forex Indicators Continued.......... Momentum - The Momentum indicator calculates the value of the commodity price shifts during a definite period of time. It is designed to measure the rate of price change, but not the actual price level. This consists of the net difference between the current closing price and the oldest closing price from a predetermined period. The Momentum indicator can be used as either a trend-following oscillator similar to the MACD or as a leading indicator. MACD - Moving Average Convergence/Divergence - Consists of two exponential moving averages that are plotted against the zero line. The zero line represents the times the values of the two moving averages are identical. The MACD is calculated by subtracting a 26-day moving average of a currency's price from a 12-day moving average of its price. The result is an indicator that oscillates above and below zero. When the MACD is above zero, it means the 12-day moving average is higher than the 26-day moving average. This is bullish as it shows that current expectations (i.e., the 12-day moving average) are more bullish than previous expectations (i.e., the 26-day average). This implies a bullish, or upward, shift in the forex rate. When the MACD falls below zero, it means that the 12-day moving average is less than the 26-day moving average, implying a bearish shift in the currency. Oscillators: Oscillators represent a useful technical analysis tool for discovering short-term overbought or oversold forex market conditions. Using oscillators can help forex traders notice when the currency is moving into an overbought/oversold situation and consider selling/buying it. The signals that oscillators give are considered to be of greatest value when they are located at the extremes of their scales. Additionally, the crossing of the zero line, when applicable, generally gives direction signals. I hope this article helped you and enhanced your knowledge for better understanding of forex indicators thus increasing your returns. __________________ To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts. To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts. To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.