| OSCILLATING INDICATORS |
| Written by Ivan Yurukov |
| Friday, 18 December 2009 10:12 |
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Oscillating indicators as their name implies, are indicators moving back and forth while the prices of currency pairs rise and fall. Oscillating indicators can help you determine how strong is the current trend of movement of the currency pair and also if this trend is in danger of losing the power of moving and reverse this movement. When the Oscillating indicator moves too high, it is assumed that the currency pair is overbought (i.e too many people have made their purchases on the currency pair and there are not enough other buyers on the market to continue to move the price upwards) .This shows that the currency pair is exposed to the risk of lossing its power of movement up and turning the movement back.
When an oscillating indicator move too low, it is assumed that the currency pair is oversold (i.e too many people have made their sales of the currency pair and there are not enough sellers on the market to continue to move the price of currency pair up). This shows that the currency pair is exposed to the risk of losing the power of the movement and reverse.
We will examine the following oscillating indicators:
Commodity channel index (CCI) Moving average convergence divergence (MACD) Slow stochastic
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| Last Updated on Friday, 07 May 2010 10:34 |
