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When analyzing the Forex trades, many analytical
methods are utilized. The basic analysis interprets the economic data of the
countries and the technical analysis that provides the forecasts about the
future prices is the one of these methods. The indicators that help us to
interpret the market in technical analysis are the most frequently used
indicators and the detailed features of these indicators we will examine.
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Each indicator has its own characteristics.We can have more stable and accurate information about the future prices by using these features. We can reach the most successful result by evaluating the transaction through the trial account for a while in order to choose the indicator suitable for the parity we want.
You can see how the indicators have been added to the MT4 platform in our previous article.
There are different types of indicators depending on the frequency of the transactions you make in Forex, the type of parities and the ease of personal use. Among these, the most preferred and successful indicators are as follows.
The MACD indicator was developed by Gerald Appel. It is an indicator consisting of moving averages. It allows us to have information about the direction by determining the compatibility or incompatibility of the two moving averages relative to each other.
A 12-day short-term exponential moving average, a 26-day longer-term exponential moving average is subtracted and it is calculated in this way.The processes are
Zero level is regarded as equilibrium. The signal is interpreted as a Buy signal if the line goes
above this level. In case of sagging
underneath is interpreted as Selling signal.
In some cases, inconsistencies between the indicator and the price can also be used to obtain an idea. With MACD curves, prices are inversely proportional, and if there is a discrepancy, it means that the trend is over and that a fast move may be the beginning in the reverse direction.
2-Bollinger Bands (Bollinger Bands)
Click here to open an account and start forex trading immediately.
Each indicator has its own characteristics.We can have more stable and accurate information about the future prices by using these features. We can reach the most successful result by evaluating the transaction through the trial account for a while in order to choose the indicator suitable for the parity we want.
You can see how the indicators have been added to the MT4 platform in our previous article.
There are different types of indicators depending on the frequency of the transactions you make in Forex, the type of parities and the ease of personal use. Among these, the most preferred and successful indicators are as follows.
1-Moving Average Convergence / Divergence (MACD)
The MACD indicator was developed by Gerald Appel. It is an indicator consisting of moving averages. It allows us to have information about the direction by determining the compatibility or incompatibility of the two moving averages relative to each other.
A 12-day short-term exponential moving average, a 26-day longer-term exponential moving average is subtracted and it is calculated in this way.The processes are
MACD=
EMA(12)-EMA(26)
SIGNAL=EMA(MACD,9)
In some cases, inconsistencies between the indicator and the price can also be used to obtain an idea. With MACD curves, prices are inversely proportional, and if there is a discrepancy, it means that the trend is over and that a fast move may be the beginning in the reverse direction.
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