The MACD indicator in technical analysis of the FX market is one of the leading momentum indicators. It is a combination of two Exponential Moving Averages (EMAs).
A double bottoms pattern is the inverse of a double top pattern. When such a pattern forms, it is a strong signal that a downtrend is reversing. A double bottoms starts with a prolonged downtrend, followed by a rise and then another drop to about the same level as the original low of the downtrend. Finally, we see another substantial rise from the second low. The double bottom patter should eventually emulate the letter "W". Read more >>
If you have been following the plight of the JPY since the earthquake you will know that it has been hit significantly falling against all major cross currencies, however, the MACD indicator shows that the currency might be oversold and set to rally against major cross currencies. Read more >>
In this article we discuss the use of the MACD indicator in FX trading, for some practical examples of how the indicator works as well as a little more description on how the indicator works, please watch the video at the bottom of this article. Read more >>
The Moving Average of Oscillator, or OsMA, is an indicator that is calculated by taking the difference between a shorter-term moving average and a longer-term moving average. The two most common are the 12 period moving average and the 26 period moving averages. Because of this fact, it is best described as a modification of the classic MACD indicator. Play video >>
The Momentum indicator is an indicator that calculates the value price shifts during a specific period of time, often defined as “X” candles. One of the things that make it a little unusual, Momentum is used as a leading indicator. Play video >>
The Moving Average Convergence Divergence or MACD indicator is calculated by taking the difference between a shorter-term moving average and a longer-term moving average. The two most common are the 12 period moving average and the 26 period moving averages. Play video >>
The Parabolic SAR is an indicator that is used by traders to determine the direction of a pair's momentum, and more importantly when the momentum has a larger than usual probability of changing directions. Sometimes when traders us the Parabolic SAR, they will refer to it as a "stop and reversal system". Play video >>
Following the earthquake that devastated Japan, the JPY is showing some signs of recovery vs other cross currencies according to the MACD indicator. Play video >>
How to use the MACD indicator in Forex Trading. Play video >>
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