The purpose of this article is to provide traders with a detailed explanation of the use of Bears Power and Bulls Power indicators, their calculation and their signals with a step-by-step tutorial. We will also explain how to use these indicators for trading in the financial markets. Bulls Power – Indicator that measures the strength of buyers The financial markets … Read more
This is a simple trading system that looks for overbought and oversold conditions in the price to enter the market, so it works best in non-trending markets, but still offers the ability to build an equity curve that grows positively and constant. It is based on the use of two-oscillator indicators, the RSI and the Chande oscillator, which are quite … Read more
The Money Flow Index Indicator, or MFI indicator, is a technical indicator used to identify overbought and oversold zones. To understand the importance of this indicator, it is necessary to ask the following question: what moves the markets? The shortest answer maybe supply and demand. If the demand for an instrument is high and there is little supply, the price … Read more
In this article we are going to present a technical indicator designed for the Metatrader 4 platform which displays the QQE (Quantitative Qualitative Estimation) indicator below the price chart of any trading instrument that we are analyzing, be it a currency pair, a precious metal, an index or a stock.
At the end of this article, you will be able to download the indicator at no cost.
Description of Hull moving average (HMA), a little-known type of moving average that almost eliminates lag in relation to price action compared to traditional moving averages.
A moving average over the price of a financial asset, such as a stock or currency pair, is a high-value trend indicator. It is possibly the most famous and widely used trading indicator of all.
Typically, the three most commonly used classic moving averages are as follows: simple, exponential, and weighted.
But today we are going to explain a little-known moving average, which is considered by many to be one of the best that exists.
It is the Hull moving average.
The Quantitative Qualitative Estimation indicator (abbreviated QQE) is a mystery since nobody currently knows who its author is. Originally designed to create an indicator that is capable of signaling the trend while detecting overbought and oversold levels, the QQE consists of a smoothed version of the RSI on which two dynamic levels are calculated (Fast Trailing Level and Slow Trailing Level ). To obtain these levels we must follow the following steps:
What is the ATR? The ATR is a technical indicator that measures the volatility of the market. As such, the indicator does not provide information on the direction of the price, but on the degree of movement of the price, or volatility. It was developed by J. Welles Wilder and disseminated in his book, New Concepts in Technical Trading Systems … Read more
As traders that we are, or pretend to be, we will spend most of the time looking for the best time to enter the market in a certain direction. In this search, we will use some tools such as technical indicators. From my point of view, any trader who bases his trading on technical analysis should use at least 4 types of indicators.
Well, rather, you should use those indicators that respond to the 4 basic trading needs: recognize the prevailing trend -> confirm the trend -> find the best entry -> find the best exit. These needs can be covered with the information of 1 or several indicators. Thus, I will classify the indicators into 4 categories according to the need they will cover, although this classification is for illustrative purposes only.
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To perform a consistent technical analysis, it is necessary to know what are the most important indicators to make our trading decisions. If you are starting your career in the world of trading, the price charts of different currency pairs can be overwhelming at first. In addition, it is confusing to know what are the most appropriate technical indicators to study for each price chart.
In this article, we are going to see the four basic groups of technical indicators that exist based on the information that each one presents. In ForexDominion we already have several articles that explain exactly how all these financial indicators work and how you can use them to analyze trends, price objectives, and strategies. Therefore, we are not going to focus on saying which type of technical indicator is the best, since each trader has its own tastes and strategies, neither in specific details of the indicators but in the general characteristics of these analysis tools, since our goal is to help the reader to better understand each indicator and its use.
Before analyzing this technical tool in detail, I have to clarify that this indicator developed by Larry Connors is not exactly the same as that used in the RSI2 strategy (a simple 2-period RSI), although the strategy that we will see throughout the article has some similarity, although with some additional twist. But let’s not entertain ourselves, let’s start with the preliminaries: what is the ConnorsRSI?
The ConnorsRSI indicator formula consists of 3 elements:
1-) An RSI of 3 periods, in order to measure the momentum of the price in the short term.