Forex Oscillators

The oscillator is a technical analysis method that is used to predict the prices in the Forex market. They are calculated by indicators, using the moving average. The analysis and use of oscillators give the best advice at the constant state of the market, but even in time of trend reversal, it can determine outstanding help.

The Average True Range (ATR) indicator was introduced by Welles Wilder as a tool to measure the market volatility and volatility alone leaving aside attempts to indicate the direction.

  The Bollinger Bands indicator displays the current market volatility changes, confirms the direction, warns of a possible continuation or break-out of the trend, periods of consolidation, increasing volatility, etc.

  The Commodity Channel Index is an indicator by Donald Lambert. Despite the original purpose to identify new trends, it’s nowadays widely used to measure the current price levels in relation to the average one.

  The DeMarker indicator was introduced by Tom DeMark as a tool to identify emerging buying and selling opportunities.

  The Envelopes indicator reflects the price overbought and oversold conditions helping to identify the entry or exit points as well as possible trend break-downs.

  The Force Index indicator invented by Alexander Elder measures the power behind every price move based on their three essential elements, e.g., direction, extent, and volume. The oscillator fluctuates around the zero, i.e., a point of a relative balance between power shifts.

Forex Volume Indicators

Volume is one of the most powerful indicators of the market and is characterized by the market participants, strength and intensity. It presents the total number of shares/ contracts traded within a timeframe. The higher the volume, the higher is liquidity, and the lower is volatility (volatility is the size of price moves).

  Accumulation/Distribution indicator is designed to identify cumulative inflows and outflows of money for an asset.

  Money Flow Index (MFI) is an indicator that is designed to estimate the intensity of money inflow in a certain asset.

Forex Trend Indicators

Trend indicators bring an excellent method of doing technical analysis in the Forex market. They help to interpret the price movement of currency, showing if the price movement will be strong or is likely to reverse. According to trend indicators, the price movement is analyzed by studying how the average of its movements is going. Either a simple moving average or an exponential moving average can be used, and any period of time can be studied.

Average Directional Index (ADX) developed by Welles Wilder is a technical indicator that is designed to determine trend strength and further possible price movements.

Parabolic indicator developed by Welles Wilder is designed to realize a number of functions: rejecting or confirming trend direction, determining trend end, correction or flat stages, and indicating possible exit points.

  Moving Average is an instrument of technical analysis which displays the average price during a certain period of time.