In the world of forex trading the triangle pattern stands out as a chart formation that almost everyone knows. This pattern is a signal that the market is taking a breather forming a shape that looks like a triangle as prices moves between two converging levels of support and resistance. This specific pattern is highly prized by traders as it acts as a strong indication … [Read more...]
MACD Indicator – In Search of Divergence
The MACD indicator is a short abbreviation for moving average convergence divergence. It is a widely used indicator based on a calculation of exponential moving averages and a “signal” line. It is plotted in a separate window underneath the trading chart and can often come with a histogram showing the movement shaded in ranges. The common calculation for an MACD indicator is … [Read more...]
RSI Indicator – Getting The Best From Chart Trends
The RSI Indicator is short for Relative Strength Index. It is a commonly used type of momentum indicator for technical analysis charts which shows you overbought and oversold levels of a price. it performs a calculation on the amount of “up” closes divided by the amount of “down” closes over a set period of days, weeks or hours (depending on the type of trader you are). Take a … [Read more...]