What are foreign exchange trading technical indicators?
Foreign exchange trading technical indicators are a technical analysis tool used to guide us in selecting the right buying and selling points and appropriate foreign exchange trading strategies.
For example, MA (moving average), RSI (relative strength index), Stochastic (random index), and MACD (index smooth dissimilarity average) are technical indicators for foreign exchange trading, and they can effectively identify trading opportunities.
There are roughly two types of foreign exchange trading technical indicators: one is the "trend" indicator, which displays the trend of change. Another type is the "oscillation" indicator, which predicts market changes.
For example, "MA" (moving average) is a classic indicator of foreign exchange trends. This indicator is based on the mean calculated from past data (K-line). This indicator slowly moves from one K-line to another. The longer the selected time period, the smoother the moving average appears. If the moving average shows a long position arrangement, that is, a buy signal; if the moving average shows a short position arrangement, that is, a sell signal.
On the contrary, if the moving average forms a long position, it is a buy signal.
And things like "Stochastic" belong to oscillation indicators. The design purpose of this goal is to determine "oversold" and "overbought". This indicator consists of two lines: the fast line (K) and the slow line (D). Simply put, it can be confirmed whether it is a strong buying signal by observing the fast line (K) crossing the D line when it rises above the 20 level. However, if K and D run above 80 and the K line quickly crosses the D line, there will be a demand for a pullback in the market.
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