Forex Trading: Technical Analysis Comprehensive Guide
Forex Trading: Technical Analysis Comprehensive Guide
Moving Averages (MAs)
Definition and Calculation: Moving Averages smooth out price data to identify the trend direction.
The Simple Moving Average (SMA) and the Exponential Moving Average (EMA) are common.
Trading Signals include crossovers and acting as dynamic support/resistance levels.
Relative Strength Index (RSI)
Theory, Calculation, and Application: The RSI measures the speed and change of price movements,
indicating overbought (above 70) or oversold (below 30) conditions. Trading signals include
overbought/oversold conditions and divergence with price action.
Bollinger Bands
Concept, Calculation, and Trading Approaches: Consists of a middle SMA, with upper and lower
bands indicating volatility. Trading signals include squeezes and band breakouts, suggesting
potential overbuy or oversell conditions.