Bollinger Bands | SigmaForex
Filed under: Bollinger Bands, Moving average, Seasonal adjustment, sigma forex, sigma forex indicators, sigmaforex, Trade, Unemployment, Unemployment benefits, United States, United States Department of Labor Author:| Bollinger Bands |
The middle line is the simple moving average, normally set as a period of 20 (number of bar/ticks in a given time period), and is used as a base to create upper/lower bands. The upper band is the middle band added to the given deviation multiplied by a given period moving average. The lower band is the middle band subtracted by the given deviation multiplied by a given period moving averages.
It used for determining whether current values of a data field are behaving normally or breaking out in a new direction also for identifying when trend reversals may occur.
Using Bollinger Bands
1) Trend – When price moves outside of the bands, it is believed that the current trend will continue.
2) Volatility- The band will expand/contract as the price movement becomes more volatile/or becomes bound into tight trading patterns, respectively.
3) Determine Oversold/Overbought Conditions – When price continues to hit upper band, the price is deemed overbought (may suggest sell). When price continues to hit lower band, the price is deemed oversold (may suggest buy).
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Average Directional Movement Index | SigmaForex
Filed under: Foreign exchange market, Hedge fund, Market trends, Pivot point calculations, Short, sigma forex, sigma forex indicators, sigmaforex, Stock market, Technical analysis, Trade Author:
J Welles Wilder has developed the Average Directional Index (ADX) to define trend force, whether the trend will develop further or will gradually weaken.
The simplest trading method based on the system of directional movement implies comparison of two direction indicators: the 14-period +DI (yellow) one and the 14-period –DI (Green). To do this, one either puts the charts of indicators one on top of the other, or +DI is subtracted from -DI. W. Wilder recommends buying when +DI is higher than -DI, and selling when +DI sinks lower than -DI.
To these simple commercial rules Wells Wilder added "a rule of points of extreme". It is used to eliminate false signals and decrease the number of deals. According to the principle of points of extreme, the "point of extreme" is the point when +DI and -DI cross each other.
- If +DI raises higher than -DI, this point will be the maximum price of the day when they cross.
- If +DI is lower than -DI, this point will be the minimum price of the day they cross.
The point of extreme is used then as the market entry level.
Thus, after the signal to buy (+DI is higher than -DI) one must wait till the price has exceeded the point of extreme, and only then buy.
However, if the price fails to exceed the level of the point of extreme, one should retain the short position.
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The simplest trading method based on the system of directional movement implies comparison of two direction indicators: the 14-period +DI (yellow) one and the 14-period –DI (Green). To do this, one either puts the charts of indicators one on top of the other, or +DI is subtracted from -DI. W. Wilder recommends buying when +DI is higher than -DI, and selling when +DI sinks lower than -DI.
To these simple commercial rules Wells Wilder added "a rule of points of extreme". It is used to eliminate false signals and decrease the number of deals. According to the principle of points of extreme, the "point of extreme" is the point when +DI and -DI cross each other.
- If +DI raises higher than -DI, this point will be the maximum price of the day when they cross.
- If +DI is lower than -DI, this point will be the minimum price of the day they cross.
The point of extreme is used then as the market entry level.
Thus, after the signal to buy (+DI is higher than -DI) one must wait till the price has exceeded the point of extreme, and only then buy.
However, if the price fails to exceed the level of the point of extreme, one should retain the short position.
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Characteristics Of Forex Charting In SigmaForex
Filed under: bear market, currency charts, financial rewards, foreign exchange, forex charts, historical data, market rates, trades, trends, type of charts Author:
Forex charts play a very important tool for your success on the foreign exchange market. To fully understand the ever-changing market rates, currency charts offers a comprehensive snapshot that will help you do your trading partners in an effective manner. If you are unsure of the various advantages of this type of charts, read on and get ready to be convinced.
Why is Forex Charting so important?
Completing trades on the currency market with foreign exchange charts is almost like playing on the highway, where things move very quickly and you have the Fang of market measures in the blink of an eye stroke. If you are in a position to the Fang of a financial trend may bring new financial rewards whereas if you miss some of the key data points can leave stranded.
Forex charts can be used in spite of your trading partner's style or skill level. Can you imagine a greater picture of where the market is heading, then you can expect that the various events can bring some pretty big financial rewards.
Generally, the foreign exchange market on the day to day, not in a position to define the long range trends. But through the use of forex charts, you can see the changes in the recent market developments and allow you to predictions for the future currency movements. To get a step ahead of market development, can lead to financial profits.
The best feature of this type of charts, it was easy to use, and it brings you the recent real-time data. However, the view is significantly greater than the daily movements of the market or even a specific share. This type of charts are especially value on the observation of the market, the really control the ultimate impact on the performance of each stocks.
This will help you to see why even the best stocks at some point suffer from adverse movements in a bear market. This kind of charting software helps in the planning of large amounts of historical data and presents the information in a manner arranged to give you a general idea of what is now happening, what has happened in the past, and hopefully, was in all likelihood happen in the near future.
The data, which, quite well that the analysis functions easier to help you find the right market timing determination. Forex charts provide a wealth of information and advice to your fingertips. The projects are based on figures unbiased, hard facts and trends, which are then translated at a later date for profit.