Ways of working and use of indicators Forex Trading

Ways of working and use of indicators Forex Trading : Once you learn how to choose the indicators, trade, and now we will discuss how the impact indicators in MetaTrader. But I do not want to discuss it then indicators such as the number of elements in Metrateder 4 has more than 30 indicators. So I would like to summarize it as some of the indicators that are often used by traders.

Relative Strength Index
It uses the Relative Strength Index, or RSI to calculate the ratio between the increase and decrease in price. RSI value of 0-100 used. The function of the RSI indicator to determine whether the price is excessive or oversold.

Using RSI
When you use the RSI, the RSI value when prices are too high (more than 80), the time has come to sell and when the value of the RSI is low (less than 20), it is time to open a buy.

MACD
Moing average convergence and difference indicator function is to show the direction of what is happening. Inside there are two lines MACD signal line and the MACD line. For the signal line is usually red, calculated over a period of nine days, while the MACD line is calculated from the reduction of more than 26 days and 12 days. It can also be used as MACD to determine when to buy and when to sell.

Using MACD
If posirif MACD and the MACD signal line cut the line from the bottom to the top, and it's time to buy and if negative MACD MACD signal line painted on the line, then it's time to sell.

Parabolic SAR
EQ is used SAR (stop and reverse) to determine whether there was a change in the share price. Parabolic SAR appear with the points above or below the graph.

Using Parabolic SAR
When parabolic SAR indicator of the price, the time has come to buy and when Parabolic SAR is the price, and it's time to sell.

SMA
MA MA or indication Dealers common. This indicator is used to calculate the average change in the prices of financial instruments over a period of time. Usually, within 5 days, 10 days, 20 days, 50 days, 100 days or 200 days. There are four different forms of MA in technical analysis are used:

    Simple Moving Average (SMA)
    Linear Weighted Moving Average (LWMA)
    Exponential Moving Average (EMA)
    Smoothed moving average (SMMA)

For more information about the terms and difference four variations MA justice as follows: Attach the index moving average in the chart, and you will look like the image below.

From these images, we can choose the variant of MA, straight, smooth exponential, weighted linear. To distinguish these four variations of the above, then I will give a different color for the same period. To change the color, you can use the column style. Spend variation SMA (SMA) to give a red color, while the variation EMA (EMA) and smoothed Moving Average (SMMA), we offer the colors yellow and blue, and the linear weighted moving average (LWMA) give us white. To provide color variations in 4 then we can see that one of the four versions of the sensitive and not sensitive to price.
The four changes, the moving average is the most sensitive (prices respond quickly to changes) is one type of SMA, EMA and LWMA of. Therefore, all three variants, are generally used for short-term transactions. Changes in MA the SMMA response rate of growth is less sensitive to changes, are generally used for long-term transactions. Predict the price will be the more sensitive indicator is very useful, it is sometimes the most sensitive indicators often false signals (signals generated may not be correct or not much). If you want to play it safe, then the best option is to compare changes in high school the other variants. But did not get the risk of great joy, but also great risk. SMA can be selected, because more sensitive to changes in the signal. However, all indicators of change will only use as an aid to decision-making, while we are actually instructions that decision on the basis of indicators.

SMA
MA is very simple to use: Suppose we take MA paragraph 8 (red) and 12 (blue). Then, when the time period MA 12 mA 8, from top to bottom, then this means that its sales time. On the contrary, if the 12 moving average cycle cycles 8 from the bottom up, then it's time to buy.

Stochastic Oscillator
The stochastic oscillator is an indicator that shows the position compared to the closing price higher or lower price range, in a given period of time.

Using a random oscillator
Using the stochastic oscillator is oversold said random when the value exceeds 80, this means that the time of its sales, but if the value is below 20 oversold random, which means that it's time to buy. As% K and% D. When% K line through the% D line, which means it's time to buy. When the% K line crosses the% D means it's time to sell.

William percentage range
William Percent Range (WPR) is an indicator, as if the price is overbought or oversold. Sedan overbought prices tended to decline, while the sales prices tend to rise. Is index value 0-100.

William percentage range
Basically, the use of these indicators is easy. If the price is high value, about -20, then it's time to sell, the price is very low values, below -80, then it's time to buy.

Bollinger Bands
Bollinger band is an indicator, the center line is limited by the standard deviation of the two rows. Bollinger Bands are used to determine the price fluctuations. When price fluctuations, reduce price is relatively flat mobile, the indicator will be expanded.

Bollinger
How to use Bollinger Bands indicator is the price of contact line, which is when we sell. Conversely, if the prices hit the bottom line, this time to buy. Note, however, if the price is above or below the line of the line, approximate price movement will continue.

Money Flow measure
Money Flow Index (MFI) Laszlo Biriyi Jr.. This measures the amount of flow of capital out of security products. Indicator Relative Strength Index (RSI) indicator is similar, the difference is taken to take into account the the RSI indicator only price, but also takes into account the volume of MFI screen.

MFI positive and negative cash flow cash flow as an indicator, then compared to the price. This is done to identify the strengths and weaknesses of a trend. Like the RSI indicator MFI 0-100, usually within 14 days. Maximum period period of time, the movement is smoother and more stable MFI fluctuations.

The proportion of positive cash occurs, a special price special price today is greater than yesterday. Although the relationship between negative cash, a special price for today's special price is less than yesterday. The positive cash prices the sum of the positive cash flow during this period. Once the payment, a negative pulse is negative over a specified period by the sum of the cash flows.

Use MFI
MFI indicators RSI indicator (oversold) as an indicator of the trend (divergence), or as an indicator of overbought the point (overbought) or super selling point you can use something like.

If the measured MFI of the price of the product, which may be the final performance of the direction of change of the moving direction of the moving in the opposite direction. In this case, however, a very long period of time, the change in the direction of the new trend of price then occurs data takes time. Therefore, we recommend the use of other indicators, these indicators used in combination.

In this way, we can get estimates, a buy signal, if the direction of the MFI increase in the price downward direction. Signal sales opposite direction indicators MFI fell, and the direction of prices.

MFI screen can also be used to determine whether too much or too little volume. If it is too bulky transaction, the overbought state so investors tended to decline. If you are using a volume-based approach, and then sell signal (sell), micro finance institutions in more than 80 buy signal (Buy) IFM 20.

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