Indicators and how they work?

[fahadshaheen]

well one has to study and analyze each of the indicators in order to find about the indicator if leads to profitable trades or not and for what purpose or should be used in terms of scalping or analyzing long term trend.

[jamalmolla5]

RSI= A technical momentum indicator comparing the magnitude of recent gains to recent losses, helping determine overbought and oversold conditions of a FX pair. It is calculated using the following formula:
RSI = 100 - (100 / 1 + RS)
RS = Average of x days' up closes / Average of x days' down closes
RSI ranges from 0 to 100. RSI readings above the 70 level indicate that the FX pair may be overbought, while readings below 30 likely point to an oversold FX pair.
MACD = Moving Average Convergence/Divergence
is a technical indicator that measures a FX pair�s exchange rate swings. The MACD uses (in its calculation) two exponentially smoothed moving averages of the FX pair�s historical price, and usually spans over a period of time. The MACD is often compared to its own moving average, providing traders signals on when the FX pair might rise or fall.
If you want to know other JUst click on ADX CCI Thanks

[budado]

Theirs just too many indicators that we can use right now and its better that we use that indicators the right way and not simply because we know that indicator we going to use it. But without learning how to use that indicators the right way we going to end up using that indicators the wrong way. I suggest that what we do is to try one indicator then study how to use that indicator then try to find a site that uses that indicator when doing forecast and check if you two has the same result. If not then check were did you make wrong computation in order to correct that mistake.

[abdelhadighann]

the Commodity Channel Index (CCI) is a versatile indicator that can be used to identify a new trend or warn of extreme conditions

[dmambi]

All most all indicators work on a particular mathematical formula written based on the historical data on the chart we are using. So naturally indicators are a good option to rely and do trading. But before this we need to know the basic behind that formula and how it works to make use of it in a better way in trading.

[budado]

Theirs just too many indicators that we can choose if we want to trade. The best way to make good amount of money in forex trading is by having a good strategy and once you have a good strategy the next question is what indicator is best to use that strategy. that's why its very important that we know what we are doing in forex. We know what the steps in learning also. So before we try to find an indicator we must first find a good strategy that we want to use then check what indicator is best suitable for that strategy.

[even89]

actually, all kind of indicators, just a tool that will help us to simplifying the price movement. we couldn't generate any signal without any adjusment. we must know what the indicators work for. and just remeber. indicators movement happen after the chart move.

[mhwaheed]

i think its something to do with expansion and contraction of two metals. Say they are screwed together. Now say that they expand at different rates. Now you heat them and they both start to expand at different rates so the whole thing bends. I think it is something to do with this

[jokotole09]

Commodity Channel Index (CCI) was developed by Donald Lambert. calculate the variation of this indicator is calculated as the price of the average value. typically fluctuate from the value of -100 to 100. commonly used as an indicator of overbought or oversold
* When the CCI is above 100 is said to overbought. price is overbought, it is likely the price will soon turn down
* Whereas when CCI is below - 100 said to be oversold. price is oversold, it is likely prices will soon rebound

[NAYON]

i dont like indicator, i mostly use trend line and fibonacci tools. i thike those are more reliable than indicators. by using fibonacci ret. tool we can assume future trend of market.