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Activ Trades – Useful Forex Charting
                     Indicators




The vast majority of traders in the Foreign Exchange market rely on chart signals and patterns in
order to help them made decisions about buying and selling trades. The amount of charting
indicators grows every year, with new and improved versions Activtrades designed all the time.
However there are a few indicators which virtually every Forex trader will use at one point or
another.



Indicators such as the well known Stochastic, RSI and MCAD methods are all
variants of the classic indicator called an oscillator. Whilst the formula of an
oscillator can vary, the kinds of indications they provide the trader with are
relatively similar. Traders will use this type of indicator to determine how strong a
trend is, as well as to discover possible points in time when the trend will change.
Oscillators provide almost too much information at times, making it difficult for
novice traders to interpret them and decide what information is most important.



Bollinger bands are a simpler indicator than the oscillator, but they equally effective in their
ability to measure price action. This indicator works by creating a channel around the direction
of a price, and then suggests the limits a Activ Trades should put in place in order to make a
short term profit. The channel which the Bollinger band constructs will be based upon a
statistical formula, and is then used in combination with another indicator called a moving
average.
Volume is another useful indicator in Forex charts, which measures the activity occurring behind
the price. Volume indicators help the traders to compare the strength of a move in pricing trends
within a currency pair, with other similarly priced pairs, by measuring the volume between the
two. Low volume and a sharp rise, for instance, is usually a sign of a weak trend which is likely
to fall in the near future.

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Activ trades – useful forex charting indicators

  • 1. Activ Trades – Useful Forex Charting Indicators The vast majority of traders in the Foreign Exchange market rely on chart signals and patterns in order to help them made decisions about buying and selling trades. The amount of charting indicators grows every year, with new and improved versions Activtrades designed all the time. However there are a few indicators which virtually every Forex trader will use at one point or another. Indicators such as the well known Stochastic, RSI and MCAD methods are all variants of the classic indicator called an oscillator. Whilst the formula of an oscillator can vary, the kinds of indications they provide the trader with are relatively similar. Traders will use this type of indicator to determine how strong a trend is, as well as to discover possible points in time when the trend will change. Oscillators provide almost too much information at times, making it difficult for novice traders to interpret them and decide what information is most important. Bollinger bands are a simpler indicator than the oscillator, but they equally effective in their ability to measure price action. This indicator works by creating a channel around the direction of a price, and then suggests the limits a Activ Trades should put in place in order to make a short term profit. The channel which the Bollinger band constructs will be based upon a statistical formula, and is then used in combination with another indicator called a moving average.
  • 2. Volume is another useful indicator in Forex charts, which measures the activity occurring behind the price. Volume indicators help the traders to compare the strength of a move in pricing trends within a currency pair, with other similarly priced pairs, by measuring the volume between the two. Low volume and a sharp rise, for instance, is usually a sign of a weak trend which is likely to fall in the near future.