What Is Forex Indicator and Tools

Indicator gives some representation of how much a currency has moved compared to all other currencies its match with, and it is of course about future. There is a commercial indicator on the market which is done using the spread sheet or indicator updated automatically directly from the Meta trader chart. Also many other indicators are made with the help of some research. Is this possible technically all the time? It may assist you, but not for final decision making. Most of the time traders fully depend on some indicators which can have possibility to fail them, as because they (Indicators) can't ensure perfection of future market, against all currencies, all time. That's why it should keep in mind to conduct your trading for win, not for loss. At the end you like to see yourself as a winner. Auto trading robot is another familiar tools now- a-day. But there are several problems because it is very long term procedure which cam have you bored. Don't get your optimum achievement. Considering the above mentioned factors you have to make a constructive decision for your success. As an option, you can rely on our signal service taking analytical alert on specific currency, and be a winner for tomorrow.

Forex Trading Tools

Forex trading tools are different indicators which may be useful for forex trading. FXTDS analytical team combines all the reports of the indicators and analysis and provie signal which prove accurate. So our subscribers need not think about any analysis. From many of the indicators some are mentioned as below.

Parabolic SAR Indicator

Parabolic SAR (Stop and Reverse) is an indicator developed by J. Willes Wilder to discover and exploit profitable trends in all kinds of markets. It is a popular tool among technical traders, and a straightforward and as a simple mechanism for analyzing the markets, it offers some unique advantages over other tools. Below we have a chart of the EURUSD pair depicting the Parabolic SAR in action. We observe that the indicator was able to capture many small reversals with remarkable accuracy. And in those cases where it failed, we see that the thrust of the market action was strong enough to place it into a correct configuration, thereby minimizing the potential losses of a faulty trade.

Moving Average Convergence Divergence (MACD)

This indicator involves plotting two momentum lines. The MACD line is the difference between two exponential moving averages and the signal or trigger line, which is an exponential moving average of the difference. If the MACD and trigger lines cross, then this is taken as a signal that a change in the trend is likely.

Relative Strength Index (RSI)

The RSI measures the ratio of up-moves to down-moves and normalizes the calculation so that the index is expressed in a range of 0-100. If the RSI is 70 or greater, then the instrument is assumed to be overbought (a situation in which prices have risen more than market expectations). An RSI of 30 or less is taken as a signal that the instrument may be oversold (a situation in which prices have fallen more than the market expectations). Stochastic oscillator: This technical tool is used to indicate overbought/oversold conditions on a scale of 0-100%. The indicator is based on the observation that in a strong up trend, period closing prices tend to concentrate in the higher part of the period’s range. Conversely, as prices fall in a strong down trend, closing prices tend to be near to the extreme low of the period range. Stochastic calculations produce two lines, %K and %D that are used to indicate overbought/oversold areas of a chart. Divergence between the stochastic lines and the price action of the underlying instrument gives a powerful trading signal.

Number theory

Fibonacci numbers: The Fibonacci number sequence (1,1,2,3,5,8,13,21,34…) is constructed by adding the first two numbers to arrive at the third. The ratio of any number to the next larger number is 62%, which is a popular Fibonacci retracement number. The inverse of 62%, which is 38%, is also used as a Fibonacci retracement number.

Gann numbers

W.D. Gann was a stock and a commodity trader working in the ’50s who reputedly made over $50 million in the markets. He made his fortune using methods that he developed for trading instruments based on relationships between price movement and time, known as time/price equivalents. There is no easy explanation for Gann’s methods, but in essence he used angles in charts to determine support and resistance areas and predict the times of future trend changes. He also used lines in charts to predict support and resistance areas.

Waves

Elliott wave theory: The Elliott wave theory is an approach to market analysis that is based on repetitive wave patterns and the Fibonacci number sequence. An ideal Elliott wave patterns shows a five-wave advance followed by a three-wave decline.

Gaps

Gaps are spaces left on the bar chart where no trading has taken place. An up gap is formed when the lowest price on a trading day is higher than the highest high of the previous day. A down gap is formed when the highest price of the day is lower than the lowest price of the prior day. An up gap is usually a sign of market strength, while a down gap is a sign of market weakness. A breakaway gap is a price gap that forms on the completion of an important price pattern. It usually signals the beginning of an important price move. A runaway gap is a price gap that usually occurs around the mid-point of an important market trend. For that reason, it is also called a measuring gap. An exhaustion gap is a price gap that occurs at the end of an important trend and signals that the trend is ending.

Trends

A trend refers to the direction of prices. Rising peaks and troughs constitute an up trend; falling peaks and troughs constitute a downtrend that determines the steepness of the current trend. The breaking of a trend line usually signals a trend reversal. Horizontal peaks and troughs characterize a trading range. Moving averages are used to smooth price information in order to confirm trends and support and resistance levels. They are also useful in deciding on a trading strategy, particularly in futures trading or a market with a strong up or down trend.

Technical Indicators list:

  • Aroon Indicator
  • Aroon Oscillator
  • Average Directional Movement Index (ADX)
  • Average Directional Movement Index Rating (ADXR)
  • Average True Range (ATR)
  • Balance of Power
  • Bollinger Bands In-Depth Article
  • Bollinger Bands - Fibonacci Ratios
  • Bollinger Bandwidth
  • Bollinger Percent B
  • Chaikin’s Volatility
  • Chande’s Dynamic Momentum Index
  • Chande’s Momentum Oscillator (CMO)
  • Chande’s QStick
  • Chande’s Range Action Verification Index (RAVI)
  • Chande’s TrendScore
  • Chande’s Variable Index Dynamic Average (VIDYA)
  • Chaos Accelerator Oscillator
  • Chaos Alligator Oscillator
  • Chaos Awesome Oscillator
  • Chaos Fractals
  • Chaos Gator Oscillator
  • Choppiness Index
  • Commodity Channel Index (CCI)
  • Coppock Curve
  • Darvas Box
  • DeMark’s DeMarker I
  • DeMark’s Projected Range
  • DeMark’s Range Expansion Index (REI)
  • Detrended Price Oscillator (DPO)
  • Directional Movement Index (DX)
  • Directional Movement System
  • Disparity Index
  • Donchian Channel
  • Double Exponential Moving Average (DEMA)
  • Double Stochastic Oscillator
  • Ehlers Fisher Transform
  • Ehlers Laguerre Relative Strength Index
  • Ehlers MESA Adaptive Moving Average (MAMA and FAMA)
  • Ehlers Relative Vigor Index (RVI)
  • Elder-Ray Bear Power
  • Elder-Ray Bull Power
  • Elliot Oscillator
  • Gann HiLo Activator
  • Gann Swing Oscillator
  • Gann Trend Oscillator
  • Hull Moving Average
  • Ichimoku Kinko Huo
  • Inertia
  • Kaufman's Adaptive Moving Average (KAMA)
  • Kaufman's Efficiency Ratio
  • Keltner Bands (Based on ATR)
  • Keltner Channels
  • Kurtosis Indicator
  • Linear Regression Acceleration
  • Linear Regression Indicator
  • Linear Regression Slope
  • MACD
  • MACD-Histogram
  • MACD-Line
  • Mass Index
  • McClellan Histogram
  • McClellan Oscillator
  • McClellan Summation Index
  • McGinley Dynamic
  • Momentum
  • Moving Average (MA) In-Depth Article
  • Moving Average Envelope In-Depth Article
  • Moving Average of RSI
  • Moving Slope Rate of Change
  • Parabolic SAR
  • Percentage Price Oscillator
  • Pivot Points - 24-Hour Cycle
  • Pivot Points - 24-Hour Cycle - Fibonacci Ratios
  • Pivot Points - Monthly Cycle
  • Pivot Points - Monthly Cycle - Fibonacci Ratios
  • Pivot Points - Weekly Cycle
  • Pivot Points - Weekly Cycle - Fibonacci Ratios
  • Polarized Fractal Efficiency
  • Quantitative Qualitative Estimation (QQE)
  • Rainbow Charts
  • Rainbow Oscillator
  • Rator of Change (ROC)
  • Recursive Moving Trend Average
  • Relative Momentum Index (RMI)
  • Relative Strength Index (RSI) In-Depth Article
  • R-Squared (R2)
  • Schaff Trend Cycle
  • Stochastic Momentum Index
  • Stochastic Oscillator (Fast) In-Depth Article
  • Stochastic Oscillator (Slow) In-Depth Article
  • Stochastic Oscillator (Full) In-Depth Article
  • Stochastic RSI Oscillator
  • Stoller Average Range Channels (STARC Bands)
  • Support and Resistance
  • T3 Moving Average
  • Trailing Stoploss Levels (Volatility-Based)
  • Trailing Stoploss Reversal Level
  • Trend Continuation Factor (TCF)
  • Trend Intensity Index (TII)
  • Trend Oscillator (tosc)
  • Trend Trigger Factor (TTF)
  • Triple Exponential Average (TRIX)
  • Triple Exponential Moving Average (TEMA)
  • True Strength Index (TSI)
  • Ulcer Index
  • Ultimate Oscillator
  • Volatility Quality Index
  • Williams Percent Range (%R)

N.B Forex indicator give you only make trade suggestion but we give you decision on your successful forex trade.