Information For on-line Currency Traders - All the info that you need!



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Technical Indicators

Moving
Average
   
  Simple Moving Average Interpretation:  
  A buy signal is generated when the currency
price rises above its moving average.
 
  A sell signal is generated when the currency
price falls below its moving average.
 
MACD
   
  Interpretation:  
  A buy signal is generated when MACD
is rising above the signal line.
 
  A sell signal is generated when MACD is falling
below the signal line.
 
Volume
Interpretation:
Relative low volume shows
indecisive expectations of the investors.
High volume usually shows
the beginning of new trend.
High volume is often present
near the bottoms of the market.
Bolinger
Bands
Bollinger Bands Interpretation:
Currency prices tend to stay
within the upper and lower band.
Sharp price changes tend
to occur after the bands tighten.
When prices move outside
the bands, a continuation of the current trend will continue.
Bottoms and tops made outside
the bands are usually followed by bottoms and tops made inside the bands.
A move that originates at
one band tends to go all the way to the other band.
Volatility
Interpretation:
High values if volatility appearing in
a short time frame show an approaching bottom of the market.
A decrease in volatility over a long period
of time shows an approaching top of the market.
Momentum
Interpretation:
Buy signal is generated when
Momentum bottoms down and then turns up.
Sell signal when Momentum
peaks up and then turns down.
Watch for extremely high
values of this indicator (relative to its past values) - the trend will
probably go further.
On
Balance Volume (OBV)
On Balance Volume (OBV) Interpretation:
Once a trend in on balance
volume (OBV) has been established it remains in force until it is broken.
OBV breakouts usually preceed
price breakouts.
Buy long on a positive OBV
breakout and sell short on a negative OBV breakout.
Stochastic
Oscillator
Interpretation:
Buy when %K (black line) or %D (red line)
is below 20 and sell when %K or %D is rises above 80 level.
Buy when %K is crossing %D in an upward
direction and sell when %K is crossing %D in a downward direction.
Relative
Strength Index
Relative Strength Index Interpretation:
RSI value above 70 usually
shows that the currency is overbought and the price is likely to fall down.
RSI value below 30 usually
shows that the currency is oversold and a reverse trend may be expected.
Money
Flow Index
Interpretation:
Money flow index above 80 usually shows
that the currency is overbought and the price is likely to fall down.
Money flow index below 20 usually shows
that the currency is oversold and a reverse trend may be expected.
The divergence between the indicator and
the price usually signals that a reversal of the price trend is expected.