- July 2014
- Posted By Ninoslav
- 0 Comments
Indicators are of many types and every trader in the market has his/her own favorites. Though general purpose of all indicators is to interpret the movements of currency and predict the ascent or reverse movement of the stock, many techniques they use are different.
How to use Moving Average Line?
If you want to know at a glance whether stock trend movement is bullish or bearish then moving average line is a good indicator to use. In fact if you are interested in analyzing the support and resistance levels of the stock the MAV Line is the most reliable indicator to use. When the stock is in support level the price will start inching higher while at actual resistance level price will start falling down. The standard period of moving average line is a 20 year slot.
Why to use Bollinger Bands?
The Bollinger band is a type of trading indicator that is typically arranged around currency prices with focus on its past and predicted behaviors. The trending waves of a currency are best demonstrated by Bollinger band which is why it is one of the most reliable indicator to invest in. Apart from usual features of information which Forex tips provide, Bollinger also gives out the volatility index of the stock.
What to do with Average Directional Index?
The ADX is one reliable indicator that is a good complement to both moving average and Bollinger. Not only are all trends reflected in an ADX (Average directional index) but the strength of trends is also reflected. An ADX level below 10 shows a low strength while a score above 30 reflects some moderate strength. Before investing in Forex market “Its best to know about the best Forex indicators”.