4 Types of Indicators that FX Traders Must Know
-
0:06 - 0:09Successful forex traders know
how to use market indicators -
0:09 - 0:14that reveal the best time to buy,
or sell a forex cross rate. -
0:14 - 0:16Here are four
of the most popular. -
0:16 - 0:19The first one is
a trend-following tool, -
0:19 - 0:22which suggests whether
to enter a long, or short position. -
0:22 - 0:26Essentially, trend-following tools
help traders recognize major trends, -
0:26 - 0:31and then profit by trading
in those trends' directions. -
0:31 - 0:34One method is the moving
average crossover. -
0:34 - 0:38If the price of a stock climbs
above its 20-day moving average, -
0:38 - 0:40it could be
a signal to buy. -
0:40 - 0:43The second is a trend
confirmation tool. -
0:43 - 0:46If it concurs with
the trend-following tool, -
0:46 - 0:48a bullish sign tells a trader
to take a long position -
0:48 - 0:51in the currency
pair in question. -
0:51 - 0:55A bearish sign means find
an opportunity to sell short. -
0:55 - 0:57The moving average
convergence divergence, -
0:57 - 1:01or MAC-D is a popular
trend-confirmation tool. -
1:01 - 1:05The third indicator is
an overbought, oversold tool. -
1:05 - 1:10Traders must decide whether to jump in
as soon as a clear trend is established, -
1:10 - 1:14or to wait until after a pullback
occurs, so they can minimize risk. -
1:14 - 1:18The three-day relative strength index
can help traders make the decision. -
1:18 - 1:24The RSI calculates the total sum of up
days and down days over a time period, -
1:24 - 1:27providing a value that
ranges from 0 to 100. -
1:27 - 1:31An asset is deemed overbought
once its RSI level nears 70, -
1:31 - 1:34and undervalued
if it nears 30. -
1:34 - 1:38And the fourth indicator
is a profit-taking tool. -
1:38 - 1:43An RSI that rises to 80 or more is an
indication that it's time to take profits. -
1:43 - 1:48Other good indicators are
Bollinger bands and a trailing stop.
- Title:
- 4 Types of Indicators that FX Traders Must Know
- Description:
-
You can't trade forex without knowing these types of indicators.
Who are the top forex traders in the world? Read here:
http://www.investopedia.com/articles/forex/100515/these-are-most-famous-forex-traders-ever.asp - Video Language:
- English
- Duration:
- 01:53
Alexandre Clemente edited English subtitles for 4 Types of Indicators that FX Traders Must Know | ||
Alexandre Clemente edited English subtitles for 4 Types of Indicators that FX Traders Must Know | ||
Alexandre Clemente edited English subtitles for 4 Types of Indicators that FX Traders Must Know | ||
Alexandre Clemente edited English subtitles for 4 Types of Indicators that FX Traders Must Know | ||
Alexandre Clemente edited English subtitles for 4 Types of Indicators that FX Traders Must Know | ||
Alexandre Clemente edited English subtitles for 4 Types of Indicators that FX Traders Must Know | ||
Alexandre Clemente edited English subtitles for 4 Types of Indicators that FX Traders Must Know | ||
Alexandre Clemente edited English subtitles for 4 Types of Indicators that FX Traders Must Know |