Elementary Guide

Technical Indicators in Forex and Stocks

The Technical indicators are the mathematical tools that are used to analyze the market movements including the figures open price, High, Low, closing price, and the volume. After analyzing historic data these indicators are used to predict the future price movement. These technical indicators are most commonly used by active traders since they are designed to identify short term price movement.

ADX (Average Directional Movement Index)

The ADX indicators is the forex technical indicator of the trend strength that will build the two other indicators EMAs(Exponential Moving Average) +DI and -DIs (Directional Movements) to calculate the highs and low closing price related to the previous day’s high and the low currency price.

Moving Average Convergence and Divergence (MACD)

Momentum Indicator

- Relative Strength Index
- Stochastic Oscillator

The Stochastic Oscillator is the technical indicator that will jump up and down on a set scale that has oscillated. It will help to identify the overbought and oversold measuring the movement.