MACD Confirming Trend Direction and Reversal of Trend
This indicator is an acronym for Moving Average Convergence Divergence, which was developed by Gerald Appel. It compares a slow moving average and a faster moving average - usually 26 periods for the slow moving average and 12 periods for the fast moving average. A third element is called a signal line. This signal line is a 9-period moving average of the difference between the fast and the slow moving average. A rule of thumb is that a buying opportunity occurs when the MACD line crosses the...
How and When to Use Key Technical Indicators
By now, you can see that trading forex involves making a sequence of decisions. You begin by first deciding which direction to take the next trade. This decision is based on assessing sentiment and trend direction. The second step is deciding where to enter the trade. Entering the trade off a trend line or Fib line is an example of the basis for this decision. But the third key step is pulling the trigger-deciding to put on the trade. This is where technical indicators come into play and become...
The Global Economy
For those really interested in getting further into the macro economics of currencies, a very useful site is http worldgame ofeconomics.com. How healthy is the world economy How do you as a currency trader find the answers How do you measure global economic performance and health Why is maintaining knowledge about the global economy important for your forex trading The answer is that when the world economy and its regions are in periods of economic growth, economic stagnation, inflation or...
