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The trend component of the direction of prices used for effective successful trading on Forex. Since trade trends assumes the use of the price movement trend components, the successful trading systems are a number of methods to identify trends. Some traders use the technique of self-filter trends. With the help of this algorithm is determined by the dynamics of prices is determined that there is a step-up, step-down or sideways trend.
Momentum is the easiest indicator Forex trend. He assesses the direction of closing prices. In the calculation of the Momentum uses the closing price. In the calculation of the Momentum selected period of time, during which will be determined by the trend. If during this period the trend was heading up, we can assume that he will rise in the future. Momentum is a pretty simple indicator, which you can use to become an expert on trends, and guaranteed to make a profit on half of the markets.
Directional Movement indicator Forex trend compares the part of the current bar relative to yesterday. The method investigated and described by Welles Wilder in his book. The main difference of this method from that described above Momentum is that in this case, compares the maximum and minimum price. The comparison is performed so that the current of the bar is relative to yesterday. If an increase in value compared to yesterday, it can be considered an upward movement. In this case the sign "+" is upward movement, and " - " movement down.
Trend indicator Open/Close Indicator is an alternative method. Open/Close Indicator is able to assess the relationship between the opening price and the closing price of last trading day. This indicator is one of a kind, which takes into account the opening price. The indicator takes into account the fact that the motion of the uptrend open price lower than the closing price. In a downtrend the closing price is lower than open price. Making comparison of the sum of the opening prices of the amount of closing prices you can get a pretty reliable trend indicator.
|Category: Forex | Added by: (29.10.2017)