Types of technical indicators

There are 4 types of technical indicators in online Forex trading currency:

1. Indicators of the trend. These indicators are used to indicate the direction of the trend. They can be very useful, because the main rule of trading on the Forex market is "always go for the trend, not against it!". These include such indicators as the right to increase the stock value, convergence / divergence of the moving average and moving average.

2. Momentum indicators. Momentum indicators or force used to measure the speed or power fluctuations and changes in direction. This oscillating indicators showing overbought and resold position. Eg., An indicator of price points, the relative strength index, an indicator value of the security, to detect speculation on it.

3. Indicators of volatility. These indicators provide indications of changes in market volatility can be expected from their name. This average true range and the lines (bands) Bollinger.

4. Indicators of volume. Used to denote the volume of trades of certain currencies. Indicators of volume may be useful in confirming the direction of the trend or may signal a breakthrough. These include such indicators as the Cash Flow Chaikin, the index of demand and the indicator OBV.