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