- Moving Average Convergence-Divergence MACD - Forex
- Moving Average Convergence-Divergence (MACD) in Forex
- MACD – Moving Average Convergence Divergence Forex Academy
- Moving Average Convergence Divergence – MACD Definition
- Trading the MACD divergence - Investopedia

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The MACD marker is one of the most famous apparatuses of Technical Analysis. This instrument shows the connection between two moving methods of a security's cost. This MACD marker is made to proclaim alters happen in course, quality and pattern length of stock's cost. There is an equation for figuring MACD, for this count 26-period exponential moving midpoints subtracted from the 12-time frame exponential moving midpoints (MACD estimation done by subtracting the long haul EMA from momentary the EMA). The outcome which comes after this figuring will be the MACD line.

This MACD pointer of specialized examination depends on three parameters which named as the time consistent of the three EMAs. The parameters of MACD are estimated in days and the most normally utilized an incentive for MACD is 12, 26 and 9 days. The specialized marker of this is, MACD additionally works for discovering its period setting from the days of yore, while Technical Analysisrelies upon the consistent schedule diagrams.

This MACD marker encourages financial specialists to comprehend when bullish or bearish cost development is expanding or diminishing. The MACD pointer can be comprehended in various manners, yet the most usually utilized ways are hybrids disparity and speedy ascent or fall. MACD is an energy oscillator that goes about as a best utilized in the market of exchanging, where costs of exchange advertise are moving with a certain goal in mind.

**MACD Charts and MACD Line**

MACD graphs are appeared in two lines. The primary line of graph structures the estimation of MACD and it's called as MACD Line, it shows the separation between two EMA.

**MACD is determined utilizing three distinctive arrangement:**

**Exchanging by MACD pointer contains the accompanying signs:**

**A portion of the sign of MACD:**

**There are points of interest or hindrance of MACD:**

**Favorable position of MACD:**

**Impediments of MACD:**

**Conclusion:**

In finish of MACD I need to state that the MACD is a magnificent blend among pattern and force pointers. It is a most ordinarily utilized marker, it very well may be effortlessly accepted as speculators are focused on the MACD hybrids by the signs and the inside line. MACD is a key pointer of Technical Analysis and it's an energy family part, gives incredible quality signs which originates from the fundamental offer cost. The utilization of the MACD marker is extremely famous in the specialized examination of Forex Market. This pointer causes brokers to recognize the pattern of the present moment forex showcase. The MACD pointer additionally has a few burdens, which demonstrates that this marker isn't generally the most trusted, and precise for guaging developments, essentially when the forex advertise is truly capricious.

submitted by sharegurukul to u/sharegurukul [link] [comments]
This MACD pointer of specialized examination depends on three parameters which named as the time consistent of the three EMAs. The parameters of MACD are estimated in days and the most normally utilized an incentive for MACD is 12, 26 and 9 days. The specialized marker of this is, MACD additionally works for discovering its period setting from the days of yore, while Technical Analysisrelies upon the consistent schedule diagrams.

This MACD marker encourages financial specialists to comprehend when bullish or bearish cost development is expanding or diminishing. The MACD pointer can be comprehended in various manners, yet the most usually utilized ways are hybrids disparity and speedy ascent or fall. MACD is an energy oscillator that goes about as a best utilized in the market of exchanging, where costs of exchange advertise are moving with a certain goal in mind.

MACD graphs are appeared in two lines. The primary line of graph structures the estimation of MACD and it's called as MACD Line, it shows the separation between two EMA.

- The MACD arrangement is the distinction between a long and short exponential moving normal.
- The Average arrangement is the EMA (Exponential moving normal) of the MACD arrangement which depicted previously.
- And dissimilarity arrangement is the distinction between the MACD and the normal arrangement.

- In MACD lines Crossover an exchange is evolving.
- MACD histogram staying over zero line shows showcase is bullish and beneath zero line shows the market is bearish.
- MACD histogram flipping over the zero line invigorates affirmation of current pattern.
- MACD histogram isolates from outline costs shows signs of a coming trouble.

**Signal Line Crossovers:**It happens when the MACD falls beneath the sign line. Merchants regularly decipher MACD lines as a potential purchasing opportunity, when it crosses over the sign line. Brokers will in general consider the MACD line as a selling opportunity when it crosses beneath the sign line. While the signs of hybrids can be useful, on the other that they are not solid.**Centerline Crossovers:**It happens when MACD crosses turn over the zero lines, at that point it unmistakable as bullishness, it's called bullish centerline hybrid. On the off chance that it moves beneath from above to the zero lines, at that point it is known as a bearish centerline hybrid. A positive hybrid guarantees when the shorter exponential moving normal of the fundamental security filtered to over the more EMA.**Divergence:**Divergence structure happens when the MACD wanders through the hidden security value activity. A bullish difference structure comes when a security records a lower low and the higher low shaped by MACD. At the point when the money pair cost separates from the MACD, it demonstrates the finish of the present development. This kind of thing generally comes when value moves a single way and the MACD moves toward another path. MACD dissimilarity exchanging strategy additionally utilized for pattern affirmation as to figure defining moments of patterns.**Timing:**The MACD is significant just for those conditions in which it is applied. The MACD might be applied by an Analyst before looking to an everyday schedule scale to a week by week scale, for keeping away from the momentary exchanges against the middle of the road pattern's heading.**False Signals:**The MACD can likewise make bogus signs like a determining calculation. A bogus positive happens when a bullish hybrid finished a decay that comes out of nowhere in a stock. What's more, a bogus negative circumstance happens when a bearish hybrid followed by an abrupt upward in the stock. Examiners utilize a scope of techniques for sifting through the bogus signals and affirm the genuine signs.- Today, the MACD has gotten one of the most significant pointers for each broker since it shows an assortment of signs about developments, inversion and force all on a solitary diagram. The marker isn't directly consistently. Despite the fact that, when utilized cautiously, it encourages merchants who attempt to make early recognizable proof of value developments (that is the place and how the cost will be moving straightaway).

- MACD is a strong pointer that encourages merchants to recognize patterns of stocks.
- It likewise gives a sign before moving normal hybrid.

- The MACD pointer isn't the most confided in marker; it gives bogus signs when the forex showcase is insecure.
- One more weakness of MACD is that it will in general be increasingly expressive when contrasted with investigative. Along these lines, it is progressively reasonable for tolerating the pattern of the market as opposed to evaluating it.
- MACD is extremely convoluted now and again to be deciphered or actualized proficiently.
- When the forex showcase is shaky, the chance of phony signs is excessively high.

In finish of MACD I need to state that the MACD is a magnificent blend among pattern and force pointers. It is a most ordinarily utilized marker, it very well may be effortlessly accepted as speculators are focused on the MACD hybrids by the signs and the inside line. MACD is a key pointer of Technical Analysis and it's an energy family part, gives incredible quality signs which originates from the fundamental offer cost. The utilization of the MACD marker is extremely famous in the specialized examination of Forex Market. This pointer causes brokers to recognize the pattern of the present moment forex showcase. The MACD pointer additionally has a few burdens, which demonstrates that this marker isn't generally the most trusted, and precise for guaging developments, essentially when the forex advertise is truly capricious.

When traders learn using indicators the right way, it can prove to be a valuable tool to make money in the forex market. There are many types of indicators available in the market and the parameters they measure are momentum, volatility, trend and volume. You can use one or more indicators to measure a single parameter.

Trend indicators and oscillators

Trend indicators can be used to spot reversals of the trend or can be used to spot support and resistance. Oscillator indicators move around a specific level or move between upper and lower level. Traders make use of these technical indicators to determine whether the market is overbought or oversold. This can enable the trader to get a good signal when the divergence is drawn between the price action and the oscillator.

The popular trend indicators include:

Bollinger bands,

channel,

Ichimoku Kinko Hyo,

moving average and

parabolic SAR.

Popular oscillator indicators include:

MACD (moving average convergence divergence),

momentum,

RSI (relative strength index),

RVI (relative vigor index) and

stochastic oscillator.

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Trend indicators and oscillators

Trend indicators can be used to spot reversals of the trend or can be used to spot support and resistance. Oscillator indicators move around a specific level or move between upper and lower level. Traders make use of these technical indicators to determine whether the market is overbought or oversold. This can enable the trader to get a good signal when the divergence is drawn between the price action and the oscillator.

The popular trend indicators include:

Bollinger bands,

channel,

Ichimoku Kinko Hyo,

moving average and

parabolic SAR.

Popular oscillator indicators include:

MACD (moving average convergence divergence),

momentum,

RSI (relative strength index),

RVI (relative vigor index) and

stochastic oscillator.

There are two types of trading strategies:

Technical Analysis

Fundamental Analysis

Chart Analysis is a part of the Technical Analysis. Chart Analysis is one kind of future prediction. Traders can identify trading opportunities in price trends on the chart. Traders try to understand to take possibility movement for trading on chart patterns. Chart Analysis is a paintbrush where traders take service for developing their trading arts. For example, traders can insert different indicators or oscillators to study on the price chart. There are many indicators and oscillators which can be inserted on the price chart. Moving Average, Bollinger Bands, Ichimoku Kinko Hyo, etc., are very popular indicators and Relative Strength Index [RSI], Moving Average Convergence and Divergence [MACD], Momentum, etc., are very common oscillators.

We can tell easily traders may make choices based exclusively on the price charts of safety and comparable statistics, but involved equity analysts rarely limit their research to fundamental or technical analysis alone.

#TechnicalAnalysis #ForexTrade #OptionTrade #BestBroker #ForexSignal

http://fxmagician.com

#technical analysis #forex trade #option trade #best broker #forex signal

A trading indicator is a statistical tool that investors or traders use to evaluate the direction of the price action of a specified instrument. The trading indicators are experiential or mathematical calculations based on the price, volume, or open interest of a security or contract used by traders who follow technical analysis. Technical analysis is a trading discipline hired to estimate investments and identify trading opportunities by analyzing statistical trends collected from trading activities, such as price movement and volume. The trading indicators that use the same measure as prices are planned over the top of the prices on a stock chart.

There are many popular indicators and oscillators:

Moving Average, Bollinger Bands, Ichimoku Kinko Hyo, etc. are the popular indicators.

Relative Strength Index [RSI], Moving Average Convergence and Divergence [MACD], Momentum, etc., are very common oscillators.

The investors or traders should have proper knowledge of using the indicators and the oscillators.

**FX Magician**

#TechnicalAnalysis #ForexTrade #OptionTrade #BestBroker #ForexSignal

submitted by SahinRasel6472 to u/SahinRasel6472 [link] [comments]
A trading indicator is a statistical tool that investors or traders use to evaluate the direction of the price action of a specified instrument. The trading indicators are experiential or mathematical calculations based on the price, volume, or open interest of a security or contract used by traders who follow technical analysis. Technical analysis is a trading discipline hired to estimate investments and identify trading opportunities by analyzing statistical trends collected from trading activities, such as price movement and volume. The trading indicators that use the same measure as prices are planned over the top of the prices on a stock chart.

There are many popular indicators and oscillators:

Moving Average, Bollinger Bands, Ichimoku Kinko Hyo, etc. are the popular indicators.

Relative Strength Index [RSI], Moving Average Convergence and Divergence [MACD], Momentum, etc., are very common oscillators.

The investors or traders should have proper knowledge of using the indicators and the oscillators.

#TechnicalAnalysis #ForexTrade #OptionTrade #BestBroker #ForexSignal

A trading indicator is a statistical tool that investors or traders use to evaluate the direction of the price action of a specified instrument. The trading indicators are experiential or mathematical calculations based on the price, volume, or open interest of a security or contract used by traders who follow technical analysis. Technical analysis is a trading discipline hired to estimate investments and identify trading opportunities by analyzing statistical trends collected from trading activities, such as price movement and volume. The trading indicators that use the same measure as prices are planned over the top of the prices on a stock chart.

There are many popular indicators and oscillators:

Moving Average, Bollinger Bands, Ichimoku Kinko Hyo, etc. are the popular indicators.

Relative Strength Index [RSI], Moving Average Convergence and Divergence [MACD], Momentum, etc., are very common oscillators.

The investors or traders should have proper knowledge of using the indicators and the oscillators.

**FX Magician**

#TechnicalAnalysis #ForexTrade #OptionTrade #BestBroker #ForexSignal

submitted by SahinRasel6472 to u/SahinRasel6472 [link] [comments]
A trading indicator is a statistical tool that investors or traders use to evaluate the direction of the price action of a specified instrument. The trading indicators are experiential or mathematical calculations based on the price, volume, or open interest of a security or contract used by traders who follow technical analysis. Technical analysis is a trading discipline hired to estimate investments and identify trading opportunities by analyzing statistical trends collected from trading activities, such as price movement and volume. The trading indicators that use the same measure as prices are planned over the top of the prices on a stock chart.

There are many popular indicators and oscillators:

Moving Average, Bollinger Bands, Ichimoku Kinko Hyo, etc. are the popular indicators.

Relative Strength Index [RSI], Moving Average Convergence and Divergence [MACD], Momentum, etc., are very common oscillators.

The investors or traders should have proper knowledge of using the indicators and the oscillators.

#TechnicalAnalysis #ForexTrade #OptionTrade #BestBroker #ForexSignal

A trading indicator is a statistical tool that investors or traders use to evaluate the direction of the price action of a specified instrument. The trading indicators are experiential or mathematical calculations based on the price, volume, or open interest of a security or contract used by traders who follow technical analysis. Technical analysis is a trading discipline hired to estimate investments and identify trading opportunities by analyzing statistical trends collected from trading activities, such as price movement and volume. The trading indicators that use the same measure as prices are planned over the top of the prices on a stock chart.

There are many popular indicators and oscillators:

Moving Average, Bollinger Bands, Ichimoku Kinko Hyo, etc. are the popular indicators.

Relative Strength Index [RSI], Moving Average Convergence and Divergence [MACD], Momentum, etc., are very common oscillators.

The investors or traders should have proper knowledge of using the indicators and the oscillators.

#TechnicalAnalysis #ForexTrade #OptionTrade #BestBroker #ForexSignal

http://fxmagician.com

#technical analysis #forex trade #option trade #best broker #forex signal

Indicators Analysis

There are two types of trading strategies:

Technical Analysis

Fundamental Analysis

Chart Analysis is a part of the Technical Analysis. Chart Analysis is one kind of future prediction. Traders can identify trading opportunities in price trends on the chart. Traders try to understand to take possibility movement for trading on chart patterns. Chart Analysis is a paintbrush where traders take service for developing their trading arts. For example, traders can insert different indicators or oscillators to study on the price chart. There are many indicators and oscillators which can be inserted on the price chart. Moving Average, Bollinger Bands, Ichimoku Kinko Hyo, etc., are very popular indicators and Relative Strength Index [RSI], Moving Average Convergence and Divergence [MACD], Momentum, etc., are very common oscillators.

We can tell easily traders may make choices based exclusively on the price charts of safety and comparable statistics, but involved equity analysts rarely limit their research to fundamental or technical analysis alone.

#TechnicalAnalysis #ForexTrade #OptionTrade #BestBroker #ForexSignal

http://fxmagician.com

#technical analysis #forex trade #option trade #best broker #forex signal

There are two types of trading strategies:

Technical Analysis

Fundamental Analysis

Chart Analysis is a part of the Technical Analysis. Chart Analysis is one kind of future prediction. Traders can identify trading opportunities in price trends on the chart. Traders try to understand to take possibility movement for trading on chart patterns. Chart Analysis is a paintbrush where traders take service for developing their trading arts. For example, traders can insert different indicators or oscillators to study on the price chart. There are many indicators and oscillators which can be inserted on the price chart. Moving Average, Bollinger Bands, Ichimoku Kinko Hyo, etc., are very popular indicators and Relative Strength Index [RSI], Moving Average Convergence and Divergence [MACD], Momentum, etc., are very common oscillators.

We can tell easily traders may make choices based exclusively on the price charts of safety and comparable statistics, but involved equity analysts rarely limit their research to fundamental or technical analysis alone.

**FX Magician**

#TechnicalAnalysis #ForexTrade #OptionTrade #BestBroker #ForexSignal

submitted by SahinRasel6472 to u/SahinRasel6472 [link] [comments]
Technical Analysis

Fundamental Analysis

Chart Analysis is a part of the Technical Analysis. Chart Analysis is one kind of future prediction. Traders can identify trading opportunities in price trends on the chart. Traders try to understand to take possibility movement for trading on chart patterns. Chart Analysis is a paintbrush where traders take service for developing their trading arts. For example, traders can insert different indicators or oscillators to study on the price chart. There are many indicators and oscillators which can be inserted on the price chart. Moving Average, Bollinger Bands, Ichimoku Kinko Hyo, etc., are very popular indicators and Relative Strength Index [RSI], Moving Average Convergence and Divergence [MACD], Momentum, etc., are very common oscillators.

We can tell easily traders may make choices based exclusively on the price charts of safety and comparable statistics, but involved equity analysts rarely limit their research to fundamental or technical analysis alone.

#TechnicalAnalysis #ForexTrade #OptionTrade #BestBroker #ForexSignal

There are two types of trading strategies:

Technical Analysis

Fundamental Analysis

Chart Analysis is a part of the Technical Analysis. Chart Analysis is one kind of future prediction. Traders can identify trading opportunities in price trends on the chart. Traders try to understand to take possibility movement for trading on chart patterns. Chart Analysis is a paintbrush where traders take service for developing their trading arts. For example, traders can insert different indicators or oscillators to study on the price chart. There are many indicators and oscillators which can be inserted on the price chart. Moving Average, Bollinger Bands, Ichimoku Kinko Hyo, etc., are very popular indicators and Relative Strength Index [RSI], Moving Average Convergence and Divergence [MACD], Momentum, etc., are very common oscillators.

We can tell easily traders may make choices based exclusively on the price charts of safety and comparable statistics, but involved equity analysts rarely limit their research to fundamental or technical analysis alone.

**FX Magician**

#TechnicalAnalysis #ForexTrade #OptionTrade #BestBroker #ForexSignal

submitted by SahinRasel6472 to u/SahinRasel6472 [link] [comments]
There are two types of trading strategies:

Technical Analysis

Fundamental Analysis

Chart Analysis is a part of the Technical Analysis. Chart Analysis is one kind of future prediction. Traders can identify trading opportunities in price trends on the chart. Traders try to understand to take possibility movement for trading on chart patterns. Chart Analysis is a paintbrush where traders take service for developing their trading arts. For example, traders can insert different indicators or oscillators to study on the price chart. There are many indicators and oscillators which can be inserted on the price chart. Moving Average, Bollinger Bands, Ichimoku Kinko Hyo, etc., are very popular indicators and Relative Strength Index [RSI], Moving Average Convergence and Divergence [MACD], Momentum, etc., are very common oscillators.

We can tell easily traders may make choices based exclusively on the price charts of safety and comparable statistics, but involved equity analysts rarely limit their research to fundamental or technical analysis alone.

#TechnicalAnalysis #ForexTrade #OptionTrade #BestBroker #ForexSignal

A trading indicator is a statistical tool that investors or traders use to evaluate the direction of the price action of a specified instrument. The trading indicators are experiential or mathematical calculations based on the price, volume, or open interest of a security or contract used by traders who follow technical analysis. Technical analysis is a trading discipline hired to estimate investments and identify trading opportunities by analyzing statistical trends collected from trading activities, such as price movement and volume. The trading indicators that use the same measure as prices are planned over the top of the prices on a stock chart.

There are many popular indicators and oscillators:

Moving Average, Bollinger Bands, Ichimoku Kinko Hyo, etc. are the popular indicators.

Relative Strength Index [RSI], Moving Average Convergence and Divergence [MACD], Momentum, etc., are very common oscillators.

The investors or traders should have proper knowledge of using the indicators and the oscillators.

#TechnicalAnalysis #ForexTrade #OptionTrade #BestBroker #ForexSignal

http://fxmagician.com

#technical analysis #forex trade #option trade #best broker #forex signal

Indicators Analysis

Trading divergence is a popular way to use the MACD histogram (which we explain below), but unfortunately, the divergence trade is not very accurate, as it fails more than it succeeds. To explore what may be a more logical method of trading the MACD divergence, we look at using the MACD histogram for both trade entry and trade exit signals (instead of only entry), and how currency traders are uniquely positioned to take advantage of such a strategy. Key TakeawaysMoving Average Convergence Divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. Traders use the MACD to identify when bullish or .....

Continue reading at: http://www.investopedia.com/articles/forex/05/macddiverge.asp

## Introduction:Much after they emphatically show toward a path, it just means there is a decent possibility or likelihood that the market will take that heading, not an assurance. It's likewise great to recall that specialized markers depend on information gathered from past exchanges. Each exchange is unique thus it is conceivable that authentic data probably won't be adequate to effectively discover future market developments. Additionally, recollect that a marker ought not to be utilized in seclusion. It ought to be utilized in mix with others. Given underneath are a few pointers that can demonstrate to be useful in apportioning probabilities, obviously like we said previously, don't depend on them to foresee advertise developments. https://preview.redd.it/yqodp11g6s541.png?width=560&format=png&auto=webp&s=b67a38b65690923ba7ccb39436dd5ba7ab50a7f9 ## MACD:MACD is known as the moving average convergence divergence calculation is a covering indicator used to track trends. The MACD consists of 2 exponential moving average and histogram. It is to keep in mind that these two lines in the indicator are not simple moving averages because many traders think it that way.## Forex Index:The force index tells you how much force or volume is behind a trade. The manner in which this can help you is by helping you see what's happening underneath the surface. So if a pattern is going up and the Force Index is going down, it implies that the volume is diminishing and the pattern will likely return soon. So it sets you up for what's to come## Stochastic Oscillator:The Stochastic Oscillator shows you overbought or oversold conditions. Overbought and oversold sign is significant on the grounds that it gives you when to anticipate that the pattern should go down when it has been going up for some time.On the off chance that a cost goes excessively high excessively quick, it implies that that pair is very nearly being overbought and therefore it will return. So it cautions any merchants who may be going to enter an exchange taking a gander at the pattern that it may before long return because of the restorative wave. Additionally, on the off chance that it descends too rapidly that shows that it is oversold thus it will before long skip back thus you have to act in like manner. |

- ADX – Average Directional Index (technical indicator)
- ATR – Average True Range (technical indicator)
- BB – Bollinger Bands (technical indicator)
- BE – Breakeven
- BoC – Bank of Canada
- BoE – Bank of England
- BoJ – Bank of Japan
- BP – Basis Point
- CBOT – Chicago Board of Trade
- CCI – Commodity Channel Index (technical indicator); also Consumer Confidence Index (economic indicator)
- CFA – Chartered Financial Analyst
- CFTC – Commodity Futures Trading Commission (regulatory)
- CME – Chicago Mercantile Exchange
- COT – Commitments of Traders (market report)
- CPI – Consumer Price Index (economic indicator
- CSI – Commodity Selection Index (technical indicator)
- CTA – Commodity Trading Advisor
- DD – Drawdown, also Due Diligence, also Dealing Desk (see NDD)
- EA – Expert Advisor
- ECB – European Central Bank
- ECN – Electronic Communication Network, also Electronic Currency Network
- EMA – Exponential Moving Average (technical indicator)
- ETF – Exchange Traded Fund
- EW – Elliott Wave (theory)
- FA – Fundamental Analysis
- FCM – Futures Commission Merchant
- FDM – Forex Dealer Member
- Fed – Federal Reserve System
- FF – Forex Factory
- FIFO – First In, First Out
- FOMC – Federal Open Market Committee
- FX – Foreign Exchange
- GDP – Gross Domestic Product (economic indicator)
- GMT – Greenwich Mean Time
- HH – Higher High (chart)
- HL – Higher Low (chart)
- IB – Introducing Broker, also Interbank, also Interactive Brokers, also Inside Bar
- IMF – International Monetary Fund
- ISO – International Organization for Standardization
- LONG – A position purchasing a particular currency against another currency
- LH – Lower High (chart)
- LL – Lower Low (chart)
- LWMA – Linearly Weighted Moving Average (technical indicator)
- MT4 – MetaTrader Version 4.00 (trading platform)
- MA – Moving Average (technical indicator)
- MACD – Moving Average Convergence Divergence (technical indicator)
- MM – Market Maker, also Money Management
- MTF – Multiple Time Frame
- NDA – Non-Disclosure Agreement
- NDD – Non-Dealing Desk
- NFA – National Futures Association (regulatory)
- NFP – Nonfarm Payroll (economic indicator)
- OCO – One-Cancels-the-Other (order type)
- OHLC – Open, High, Low, Close (chart)
- OTC– Over-the-Counter
- P&F – Point and Figure (chart)
- PA – Price Action
- PB – Pin Bar abbreviation of Pinocchio Bar (chart)
- PIP – Price Interest Point, also Performance Index Paper
- PP – Pivot Point
- PPI – Producer Price Index (economic indicator)
- PPZ Price Pivot Zone
- PSAR – Parabolic Stop and Reversal (technical indicator)
- Quant – Quantitative Analysis
- R – Risk/Reward (ratio)
- RSI – Relative Strength Index (technical indicator)
- RVI – Relative Vigor Index (technical indicator)
- SAR – Stop and Reversal
- SEC – Securities and Exchange Commission (regulatory)
- SHORT – To sell a currency
- SL – Stop-Loss (order)
- SMA – Simple Moving Average (technical indicator)
- SMMA – Smoothed Moving Average (technical indicator)
- S&P – Standard & Poor's
- S/R – Support/Resistance
- Stoch – Stochastic Oscillator (technical indicator)
- STP – Straight Through Processing
- TA – Technical Analysis
- TF Time Frame
- TL – Trend Line
- TP – Take Profit (order)
- TS – Trailing Stop (order)
- TSI – True Strength Index (technical indicator)
- UTC – Universal Time, Coordinated
- WB – World Bank

Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information:

Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:

**Measure:** Is the security's price trending, has it dipped or is it a falling knife? **Interpret:** Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? **Predict:** If price reaches a certain point, will there be a rally or get rejected?

The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.

TA is best used for short term trading, but can also be used for long term.

Intro to technical analysis by Stockcharts chartschool and their article on candlesticks

**Terminology**

**Useful indicators**

**Methods or Systems**

**Strategies:** See the TA wiki here as this will be a work in progress, feel free to reply with your own strategy.

See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.

submitted by AutoModerator to stocks [link] [comments]
Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:

The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.

TA is best used for short term trading, but can also be used for long term.

Intro to technical analysis by Stockcharts chartschool and their article on candlesticks

**Indicator**- a calculation based on price and/or volume, it can be displayed as a line/number on a chart or watch list; some indicators use statistics like standard deviation such as the Bollinger Bands indicator**trade signals**- when an indicator tells you that a buy or sell (short) entry is available (also called buy signal or sell signal)**lagging indicator**- based on past prices, for example the Moving Average indicator**leading indicator**- typically oscillators which fluctuate from 0 to 100 and back, and these typically measure the rate of change; they also generate overbought, oversold, and divergence, all of which help create trade signals**oversold**- a trade signal for when to buy, for example RSI below 30, however it's best to wait when the RSI line points upwards past 30 before buying**overbought**- the opposite of oversold; for RSI it's above 70**divergence**- when an indicator and stock price move inversely which foreshadows a coming change in the price**whipsaw**- when trade signals & price suddenly reverse either stopping you out or making you exit your trade**resistance**- an area on a chart where price can't seem to go higher. The main reason is that no one is willing to buy above that price or there's more sellers than buyers.**support**- an area on a chart where price can't seem to go lower. The main reason is no one is willing to sell below that price or there's more buyers than sellers.**breakout/breakdown**- when price breaks support or resistance**alerts**- a notification for when price hits your desired target, some software allows you to place the alert direction on a chart**level ii**- This shows all bid & ask orders from market makers, usually your broker charges a fee for this, and is only really usual for day trading**trend line**- can be a moving average, previous day's high, an indicator, you can even draw a line connecting all the highs or lows for example**Market participants**- also includes market makers, institutions, and retail & institutional investors. Different markets have different participants such as futures (hedgers & speculators) and forex (banks & speculators).

**Moving average (MA)**- lagging indicator that averages previous prices, for example MA 20 will average the previous 20 days; MAs do not predict price movements, they smooth out price changes. Common averages are 10, 20, 50, 100, and 200. Typically you use 2 to 3 per chart.**RSI**- relative strength index, takes the average gain of the stock price divided by the average loss over a number of periods, default 14; starts to reverse when it points down from 70 (sell signal) and reverses agian when it points up from 30 (buy signal)**VWAP**- intraday indicator, takes the average price and weighs it by volume, basically you want to be short below VWAP and go long above VWAP; near the VWAP line (or price) there can be lots of whipsaw**MACD**- combines momentum & trend indicators; gives off many trade signals including ovebought/sold and divergence, see link here note that the histogram in the center shows how wide the MACD & Signal line are from each other**ATR**- Average true range gives a number that tells you how wide price movements are, great for helping set stops. ATR on a daily chart of 5 means average price movement of 5 points, typically you would have a stop loss 2x ATR so in this case it would be 10 point wide stop. If a stop loss of 2x ATR is too high for you, then trade a different stock.**Bollinger Bands (BB)**- takes the standard deviation of price times 2 (default); in statistics, 95% of all values are within 2 standard deviations. BB is typically used for resistance and support, more info here.**Ichimoku clouds**- Combines even more indicators, good for beginners, see here

**Trend Following**- Basically you're buying shares as a stock is going up or shorting as it's going down. Investopedia's intro to trend trading.**Fading**- shorting as price falls from resistance, or buying as price rises from support**Channels**- very much like fading except you find 2 parallel trend lines that price has been bouncing between, see here**Patterns**- Double tops, head & shoulders, and cup & handle are the most watched for, see here for more, don't get too caught up in patterns.**Breakouts/Breakdowns**- while patterns can be attractive, breakouts/breakdowns happen all the time; here's one way to take advantage of them**Pivots**- these used to be for pit traders in the exchange, just 5 numbers they needed to navigate the day's price movements, but are still used online and stock prices tend to breakout or reverse off these pivot lines

See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.

As the other answer says a signal is some sort of indicator of change - that a price movement is likely one way or the other.

Signals can also refer to tips or recommendations given by services or software that specialize in such things. 'Buy euros now at 1.1901'. Those signals are delivered in any number of ways, by email, SMS text message to a cell phone, IM message and so on. Some are no more than flashing text and/or icons on trading software. The software contains in-built algorithms that use the methods of technical analysis, combines it with current market data and generates a signal.

An example of a technical signal, for example - the MACD (Moving Average Convergence/Divergence). Without going into details here, it uses the moving average - the change in an average price over time. A signal can be generated when the value of MACD crosses above (or below) a certain threshold. Buy when it moves above the line, sell when it falls below.

There are many types of signal indicator and as with so many investment subjects signals - or technical analysis as the overall subject is generally called - has it's devotees and knockers.

My opinion is that in forex signals can be very useful once you're clued up on them and what they mean, especially in a fast moving trade situation - which forex almost always is.

As with any trading tool, it has to be used intelligently in order to avoid disasters. Entirely automating your buys and sells can amount to automatically losing money. Using a signal service can make your life easier, but never abandon your investments entirely to an automated service.

I've recently started a blog on forex (link below) which includes some articles and links to further sources e.g, https://smartfxtrader.com/ which is a site offering a free forex basics course as well as a paid product.

submitted by Rohitpure to u/Rohitpure [link] [comments]

Signals can also refer to tips or recommendations given by services or software that specialize in such things. 'Buy euros now at 1.1901'. Those signals are delivered in any number of ways, by email, SMS text message to a cell phone, IM message and so on. Some are no more than flashing text and/or icons on trading software. The software contains in-built algorithms that use the methods of technical analysis, combines it with current market data and generates a signal.

An example of a technical signal, for example - the MACD (Moving Average Convergence/Divergence). Without going into details here, it uses the moving average - the change in an average price over time. A signal can be generated when the value of MACD crosses above (or below) a certain threshold. Buy when it moves above the line, sell when it falls below.

There are many types of signal indicator and as with so many investment subjects signals - or technical analysis as the overall subject is generally called - has it's devotees and knockers.

My opinion is that in forex signals can be very useful once you're clued up on them and what they mean, especially in a fast moving trade situation - which forex almost always is.

As with any trading tool, it has to be used intelligently in order to avoid disasters. Entirely automating your buys and sells can amount to automatically losing money. Using a signal service can make your life easier, but never abandon your investments entirely to an automated service.

I've recently started a blog on forex (link below) which includes some articles and links to further sources e.g, https://smartfxtrader.com/ which is a site offering a free forex basics course as well as a paid product.

Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information:

Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:

**Measure:** Is the security's price trending, has it dipped or is it a falling knife? **Interpret:** Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? **Predict:** If price reaches a certain point, will there be a rally or get rejected?

The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.

TA is best used for short term trading, but can also be used for long term.

Intro to technical analysis by Stockcharts chartschool and their article on candlesticks

**Terminology**

**Useful indicators**

**Methods or Systems**

**Strategies:** See the TA wiki here as this will be a work in progress, feel free to reply with your own strategy.

See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.

submitted by AutoModerator to stocks [link] [comments]
Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:

The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.

TA is best used for short term trading, but can also be used for long term.

Intro to technical analysis by Stockcharts chartschool and their article on candlesticks

**Indicator**- a calculation based on price and/or volume, it can be displayed as a line/number on a chart or watch list; some indicators use statistics like standard deviation such as the Bollinger Bands indicator**trade signals**- when an indicator tells you that a buy or sell (short) entry is available (also called buy signal or sell signal)**lagging indicator**- based on past prices, for example the Moving Average indicator**leading indicator**- typically oscillators which fluctuate from 0 to 100 and back, and these typically measure the rate of change; they also generate overbought, oversold, and divergence, all of which help create trade signals**oversold**- a trade signal for when to buy, for example RSI below 30, however it's best to wait when the RSI line points upwards past 30 before buying**overbought**- the opposite of oversold; for RSI it's above 70**divergence**- when an indicator and stock price move inversely which foreshadows a coming change in the price**whipsaw**- when trade signals & price suddenly reverse either stopping you out or making you exit your trade**resistance**- an area on a chart where price can't seem to go higher. The main reason is that no one is willing to buy above that price or there's more sellers than buyers.**support**- an area on a chart where price can't seem to go lower. The main reason is no one is willing to sell below that price or there's more buyers than sellers.**breakout/breakdown**- when price breaks support or resistance**alerts**- a notification for when price hits your desired target, some software allows you to place the alert direction on a chart**level ii**- This shows all bid & ask orders from market makers, usually your broker charges a fee for this, and is only really usual for day trading**trend line**- can be a moving average, previous day's high, an indicator, you can even draw a line connecting all the highs or lows for example**Market participants**- also includes market makers, institutions, and retail & institutional investors. Different markets have different participants such as futures (hedgers & speculators) and forex (banks & speculators).

**Moving average (MA)**- lagging indicator that averages previous prices, for example MA 20 will average the previous 20 days; MAs do not predict price movements, they smooth out price changes. Common averages are 10, 20, 50, 100, and 200. Typically you use 2 to 3 per chart.**RSI**- relative strength index, takes the average gain of the stock price divided by the average loss over a number of periods, default 14; starts to reverse when it points down from 70 (sell signal) and reverses agian when it points up from 30 (buy signal)**VWAP**- intraday indicator, takes the average price and weighs it by volume, basically you want to be short below VWAP and go long above VWAP; near the VWAP line (or price) there can be lots of whipsaw**MACD**- combines momentum & trend indicators; gives off many trade signals including ovebought/sold and divergence, see link here note that the histogram in the center shows how wide the MACD & Signal line are from each other**ATR**- Average true range gives a number that tells you how wide price movements are, great for helping set stops. ATR on a daily chart of 5 means average price movement of 5 points, typically you would have a stop loss 2x ATR so in this case it would be 10 point wide stop. If a stop loss of 2x ATR is too high for you, then trade a different stock.**Bollinger Bands (BB)**- takes the standard deviation of price times 2 (default); in statistics, 95% of all values are within 2 standard deviations. BB is typically used for resistance and support, more info here.**Ichimoku clouds**- Combines even more indicators, good for beginners, see here

**Trend Following**- Basically you're buying shares as a stock is going up or shorting as it's going down. Investopedia's intro to trend trading.**Fading**- shorting as price falls from resistance, or buying as price rises from support**Channels**- very much like fading except you find 2 parallel trend lines that price has been bouncing between, see here**Patterns**- Double tops, head & shoulders, and cup & handle are the most watched for, see here for more, don't get too caught up in patterns.**Breakouts/Breakdowns**- while patterns can be attractive, breakouts/breakdowns happen all the time; here's one way to take advantage of them**Pivots**- these used to be for pit traders in the exchange, just 5 numbers they needed to navigate the day's price movements, but are still used online and stock prices tend to breakout or reverse off these pivot lines

See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.

Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information:

Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:

**Measure:** Is the security's price trending, has it dipped or is it a falling knife? **Interpret:** Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? **Predict:** If price reaches a certain point, will there be a rally or get rejected?

The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.

TA is best used for short term trading, but can also be used for long term.

Intro to technical analysis by Stockcharts chartschool and their article on candlesticks

**Terminology**

**Useful indicators**

**Methods or Systems**

**Strategies:** See the TA wiki here as this will be a work in progress, feel free to reply with your own strategy.

See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.

submitted by AutoModerator to stocks [link] [comments]
Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:

The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.

TA is best used for short term trading, but can also be used for long term.

Intro to technical analysis by Stockcharts chartschool and their article on candlesticks

**Indicator**- a calculation based on price and/or volume, it can be displayed as a line/number on a chart or watch list; some indicators use statistics like standard deviation such as the Bollinger Bands indicator**trade signals**- when an indicator tells you that a buy or sell (short) entry is available (also called buy signal or sell signal)**lagging indicator**- based on past prices, for example the Moving Average indicator**leading indicator**- typically oscillators which fluctuate from 0 to 100 and back, and these typically measure the rate of change; they also generate overbought, oversold, and divergence, all of which help create trade signals**oversold**- a trade signal for when to buy, for example RSI below 30, however it's best to wait when the RSI line points upwards past 30 before buying**overbought**- the opposite of oversold; for RSI it's above 70**divergence**- when an indicator and stock price move inversely which foreshadows a coming change in the price**whipsaw**- when trade signals & price suddenly reverse either stopping you out or making you exit your trade**resistance**- an area on a chart where price can't seem to go higher. The main reason is that no one is willing to buy above that price or there's more sellers than buyers.**support**- an area on a chart where price can't seem to go lower. The main reason is no one is willing to sell below that price or there's more buyers than sellers.**breakout/breakdown**- when price breaks support or resistance**alerts**- a notification for when price hits your desired target, some software allows you to place the alert direction on a chart**level ii**- This shows all bid & ask orders from market makers, usually your broker charges a fee for this, and is only really usual for day trading**trend line**- can be a moving average, previous day's high, an indicator, you can even draw a line connecting all the highs or lows for example**Market participants**- also includes market makers, institutions, and retail & institutional investors. Different markets have different participants such as futures (hedgers & speculators) and forex (banks & speculators).

**Moving average (MA)**- lagging indicator that averages previous prices, for example MA 20 will average the previous 20 days; MAs do not predict price movements, they smooth out price changes. Common averages are 10, 20, 50, 100, and 200. Typically you use 2 to 3 per chart.**RSI**- relative strength index, takes the average gain of the stock price divided by the average loss over a number of periods, default 14; starts to reverse when it points down from 70 (sell signal) and reverses agian when it points up from 30 (buy signal)**VWAP**- intraday indicator, takes the average price and weighs it by volume, basically you want to be short below VWAP and go long above VWAP; near the VWAP line (or price) there can be lots of whipsaw**MACD**- combines momentum & trend indicators; gives off many trade signals including ovebought/sold and divergence, see link here note that the histogram in the center shows how wide the MACD & Signal line are from each other**ATR**- Average true range gives a number that tells you how wide price movements are, great for helping set stops. ATR on a daily chart of 5 means average price movement of 5 points, typically you would have a stop loss 2x ATR so in this case it would be 10 point wide stop. If a stop loss of 2x ATR is too high for you, then trade a different stock.**Bollinger Bands (BB)**- takes the standard deviation of price times 2 (default); in statistics, 95% of all values are within 2 standard deviations. BB is typically used for resistance and support, more info here.**Ichimoku clouds**- Combines even more indicators, good for beginners, see here

**Trend Following**- Basically you're buying shares as a stock is going up or shorting as it's going down. Investopedia's intro to trend trading.**Fading**- shorting as price falls from resistance, or buying as price rises from support**Channels**- very much like fading except you find 2 parallel trend lines that price has been bouncing between, see here**Patterns**- Double tops, head & shoulders, and cup & handle are the most watched for, see here for more, don't get too caught up in patterns.**Breakouts/Breakdowns**- while patterns can be attractive, breakouts/breakdowns happen all the time; here's one way to take advantage of them**Pivots**- these used to be for pit traders in the exchange, just 5 numbers they needed to navigate the day's price movements, but are still used online and stock prices tend to breakout or reverse off these pivot lines

See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.

Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:

The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.

TA is best used for short term trading, but can also be used for long term.

Intro to technical analysis by Stockcharts chartschool and their article on candlesticks

**Indicator**- a calculation based on price and/or volume, it can be displayed as a line/number on a chart or watch list; some indicators use statistics like standard deviation such as the Bollinger Bands indicator**trade signals**- when an indicator tells you that a buy or sell (short) entry is available (also called buy signal or sell signal)**lagging indicator**- based on past prices, for example the Moving Average indicator**leading indicator**- typically oscillators which fluctuate from 0 to 100 and back, and these typically measure the rate of change; they also generate overbought, oversold, and divergence, all of which help create trade signals**oversold**- a trade signal for when to buy, for example RSI below 30, however it's best to wait when the RSI line points upwards past 30 before buying**overbought**- the opposite of oversold; for RSI it's above 70**divergence**- when an indicator and stock price move inversely which foreshadows a coming change in the price**whipsaw**- when trade signals & price suddenly reverse either stopping you out or making you exit your trade**resistance**- an area on a chart where price can't seem to go higher. The main reason is that no one is willing to buy above that price or there's more sellers than buyers.**support**- an area on a chart where price can't seem to go lower. The main reason is no one is willing to sell below that price or there's more buyers than sellers.**breakout/breakdown**- when price breaks support or resistance**alerts**- a notification for when price hits your desired target, some software allows you to place the alert direction on a chart**level ii**- This shows all bid & ask orders from market makers, usually your broker charges a fee for this, and is only really usual for day trading**trend line**- can be a moving average, previous day's high, an indicator, you can even draw a line connecting all the highs or lows for example**Market participants**- also includes market makers, institutions, and retail & institutional investors. Different markets have different participants such as futures (hedgers & speculators) and forex (banks & speculators).

**Moving average (MA)**- lagging indicator that averages previous prices, for example MA 20 will average the previous 20 days; MAs do not predict price movements, they smooth out price changes. Common averages are 10, 20, 50, 100, and 200. Typically you use 2 to 3 per chart.**RSI**- relative strength index, takes the average gain of the stock price divided by the average loss over a number of periods, default 14; starts to reverse when it points down from 70 (sell signal) and reverses agian when it points up from 30 (buy signal)**VWAP**- intraday indicator, takes the average price and weighs it by volume, basically you want to be short below VWAP and go long above VWAP; near the VWAP line (or price) there can be lots of whipsaw**MACD**- combines momentum & trend indicators; gives off many trade signals including ovebought/sold and divergence, see link here note that the histogram in the center shows how wide the MACD & Signal line are from each other**ATR**- Average true range gives a number that tells you how wide price movements are, great for helping set stops. ATR on a daily chart of 5 means average price movement of 5 points, typically you would have a stop loss 2x ATR so in this case it would be 10 point wide stop. If a stop loss of 2x ATR is too high for you, then trade a different stock.**Bollinger Bands (BB)**- takes the standard deviation of price times 2 (default); in statistics, 95% of all values are within 2 standard deviations. BB is typically used for resistance and support, more info here.**Ichimoku clouds**- Combines even more indicators, good for beginners, see here

**Trend Following**- Basically you're buying shares as a stock is going up or shorting as it's going down. Investopedia's intro to trend trading.**Fading**- shorting as price falls from resistance, or buying as price rises from support**Channels**- very much like fading except you find 2 parallel trend lines that price has been bouncing between, see here**Patterns**- Double tops, head & shoulders, and cup & handle are the most watched for, see here for more, don't get too caught up in patterns.**Breakouts/Breakdowns**- while patterns can be attractive, breakouts/breakdowns happen all the time; here's one way to take advantage of them**Pivots**- these used to be for pit traders in the exchange, just 5 numbers they needed to navigate the day's price movements, but are still used online and stock prices tend to breakout or reverse off these pivot lines

See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.

To be a great Forex analyst, one should have good understanding of fundamental and technical analysis. Many beginners in forex trading generally avoid learning technical analysis as they find it very confusing especially names of the indicators.

But in reality, it is not so tough. To make it really simple, you need to focus on top 3 forex technical indicators:

submitted by vinr2018 to u/vinr2018 [link] [comments]
But in reality, it is not so tough. To make it really simple, you need to focus on top 3 forex technical indicators:

- MA (Moving Average)
- Bollinger Band
- MACD(Moving Average Convergence Divergence)

Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:

The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.

TA is best used for short term trading, but can also be used for long term.

Intro to technical analysis by Stockcharts chartschool and their article on candlesticks

**Indicator**- a calculation based on price and/or volume, it can be displayed as a line/number on a chart or watch list; some indicators use statistics like standard deviation such as the Bollinger Bands indicator**trade signals**- when an indicator tells you that a buy or sell (short) entry is available (also called buy signal or sell signal)**lagging indicator**- based on past prices, for example the Moving Average indicator**leading indicator**- typically oscillators which fluctuate from 0 to 100 and back, and these typically measure the rate of change; they also generate overbought, oversold, and divergence, all of which help create trade signals**oversold**- a trade signal for when to buy, for example RSI below 30, however it's best to wait when the RSI line points upwards past 30 before buying**overbought**- the opposite of oversold; for RSI it's above 70**divergence**- when an indicator and stock price move inversely which foreshadows a coming change in the price**whipsaw**- when trade signals & price suddenly reverse either stopping you out or making you exit your trade**resistance**- an area on a chart where price can't seem to go higher. The main reason is that no one is willing to buy above that price or there's more sellers than buyers.**support**- an area on a chart where price can't seem to go lower. The main reason is no one is willing to sell below that price or there's more buyers than sellers.**breakout/breakdown**- when price breaks support or resistance**alerts**- a notification for when price hits your desired target, some software allows you to place the alert direction on a chart**level ii**- This shows all bid & ask orders from market makers, usually your broker charges a fee for this, and is only really usual for day trading**trend line**- can be a moving average, previous day's high, an indicator, you can even draw a line connecting all the highs or lows for example**Market participants**- also includes market makers, institutions, and retail & institutional investors. Different markets have different participants such as futures (hedgers & speculators) and forex (banks & speculators).

**Moving average (MA)**- lagging indicator that averages previous prices, for example MA 20 will average the previous 20 days; MAs do not predict price movements, they smooth out price changes. Common averages are 10, 20, 50, 100, and 200. Typically you use 2 to 3 per chart.**RSI**- relative strength index, takes the average gain of the stock price divided by the average loss over a number of periods, default 14; starts to reverse when it points down from 70 (sell signal) and reverses agian when it points up from 30 (buy signal)**VWAP**- intraday indicator, takes the average price and weighs it by volume, basically you want to be short below VWAP and go long above VWAP; near the VWAP line (or price) there can be lots of whipsaw**MACD**- combines momentum & trend indicators; gives off many trade signals including ovebought/sold and divergence, see link here note that the histogram in the center shows how wide the MACD & Signal line are from each other**ATR**- Average true range gives a number that tells you how wide price movements are, great for helping set stops. ATR on a daily chart of 5 means average price movement of 5 points, typically you would have a stop loss 2x ATR so in this case it would be 10 point wide stop. If a stop loss of 2x ATR is too high for you, then trade a different stock.**Bollinger Bands (BB)**- takes the standard deviation of price times 2 (default); in statistics, 95% of all values are within 2 standard deviations. BB is typically used for resistance and support, more info here.**Ichimoku clouds**- Combines even more indicators, good for beginners, see here

**Trend Following**- Basically you're buying shares as a stock is going up or shorting as it's going down. Investopedia's intro to trend trading.**Fading**- shorting as price falls from resistance, or buying as price rises from support**Channels**- very much like fading except you find 2 parallel trend lines that price has been bouncing between, see here**Patterns**- Double tops, head & shoulders, and cup & handle are the most watched for, see here for more, don't get too caught up in patterns.**Breakouts/Breakdowns**- while patterns can be attractive, breakouts/breakdowns happen all the time; here's one way to take advantage of them**Pivots**- these used to be for pit traders in the exchange, just 5 numbers they needed to navigate the day's price movements, but are still used online and stock prices tend to breakout or reverse off these pivot lines

See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.

The terms convergence and divergence refer to the MACD line and signal line, but you can refine your use of MACD beyond the buy/sell signal. When the MACD line is continuing to rise but the underlying price bars are already falling, you assume upward momentum has been lost and want to be on the lookout for a signal change. Moving Average Convergence-Divergence MACD . MACD was devised by Gerald Appel and became popular immediately because it creates a momentum indicator out of moving averages, which are by their nature trend-following. Moving average convergence divergence (MACD), invented in 1979 by Gerald Appel, is one of the most popular technical indicators in trading. The MACD is appreciated by traders the world over for ... The MACD. Fig 1- Chart with MACD. Click on it to enlarge. The Moving Average Convergence Divergence (MACD) is probably one of the most popular and well-known oscillator indicators in any market. It is one of our ‘modern’ indicators; created by Gerald Appel in the late 70s. It is essentially a two-part tool that traders can utilize. Moving Average Convergence Divergence (MACD) is defined as a trend-following momentum indicator that shows the relationship between two moving averages of a security's price.

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Erich from Traders Helping Traders with this week's Big Weekend Edition Tricks of the Trade. You can see the FREE Big Weekend Edition at https://supportandre... A brief summary of what MACD is all about It is short for moving average convergence/divergence, is a trading indicator used in technical analysis of stock p... http://www.forexsuccessformula.com If you enjoyed this video on Forex MACD Convergence and Divergence, then visit my site for one of the best Forex Swing trading System. MACD is one of the most popular and reliable indicators for trading. M.A.C.D. is abbreviation for Moving Average Convergence Divergence. It is fairly easy to... Understanding MACD Indicator (Moving Average Convergence-Divergence) The MACD Indicator is explained simply in this casual and informative 3 minute training ...