A Journey to Master Forex Trading (FX Trader from Singapore)

Tuesday, December 16, 2008

Technical Indicators

Technical Indicators



Indicators

BUY

SELL

ADX (14)

DMI+ over DMI-

ADX line cross 20 level

ADX and DMI+ rising and DMI- falling

DMI+ lower than DMI-

ADX line cross 20 levels and rising where DMI+ falling and DMI- rising

Bollingerbands (2, 20)

When the price below the lower band of Bollinger (20, 2)

When the price above the upper band of Bollinger (20, 2)

Commodity Channel Index, CCI (14)

When the CCI go below -100 line it means it’s an oversold mood and the trader have to wait the reversal of the trend and the CCI must went to above -100 line in order to take long.

When the CCI go above +100 line it means it’s an overbought mood and the trader have to wait the reversal of the trend and the CCI must went to below +100 line in order to take short.

MACD (12, 26, 9)

When the MACD rises above the Signal line & above Zero

MACD bar is over 0 level and rising, signal line below bars end and rising

When the MACD falls below the Signal line & is below zero

MACD bars is below 0 level and falling, signal line over bars end and falling

Parabolic Systems (0.02, 02)

SAR dots below the price chart

SAR dots over the price chart

RSI (14)

When the RSI cross 30 and rising up
RSI rises above 50 but stays below 70

When the RSI crosss 70 and falling down
RSI falls below 50 but stays above 30

Stochastics (5, 3)

When either %K or %D falls below the line, and then again crosses the bottom level upwards or when the curve %K crosses the curve %D from below upward.

When oscillator grows above the line, and then crosses the top level downwards or when the curve %K crosses a curve %D from top to downward.

Williams %R (14)

BUY when it reaches 80% or higher (the market is oversold).

SELL when %R reaches 20% or lower (the market is overbought)

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