The term “oscillators” describes histograms that swing in a repetitive fashion between two states or points. These high and low states typically indicate overbought and oversold market conditions, allowing traders to use trendline movements to determine when to enter and exit a trade and what position to take.

In forex trading, the most popular oscillators are momentum indicators. Because changes in momentum are directly correlated to changes in price, traders also use momentum indicators to gauge trend strength and determine the likelihood of a divergence.

Businesses around the world invest heavily in analytics and Business Intelligence (BI) to feed decision makers critical data to help with making decisions on the company’s future.  In fact, people and organisations have never had access to more information in history.

I believe data driven decisions also has a place in trading.

Trading is best done when it is considered as a process – a rules based activity.  As you would have heard countless times, if you want to trade successfully, you need to develop and then follow a written trading plan that suits your personality.  

Moving averages are one of the most popular tools that forex traders lean on when attempting to understand market moments because they add an extra layer to any chart analysis you’re conducting, which furthers your analysis by highlighting exactly where the price action is happening.

Odds are you are already very familiar with the moving average (MA) as a trend indicator. The moving average adds a factor to any chart you’re analyzing to show exactly where price action is happening. There are plenty of strategies to apply to the forex moving average, so today we’ll go over a few key things and address which moving average indicators you should pay particular attention to.

The Relative Strength Index, or RSI, is a price momentum indicator in the same family as the Moving Average Convergence Divergence (MACD) and Stochastic Oscillator. Like other momentum indicators, the RSI is charted on a separate graph adjacent to price and has an oscillator range between 0 and 100. Most traders use the RSI to identify overbought and oversold market conditions and locate trade entry and exit points, but it can also be used as a divergence indicator.

The parabolic stop and reverse indicator (PSAR) was developed to help traders locate buy and sell signals for current trends and determine when to enter and exit trades based on an asset’s momentum. It was created by J. Welles Wilder Jr., a prolific mechanical-engineer-turned-analyst who pioneered a variety of the technical analysis tools that financial traders still rely on today. His other feats include the relative strength index (RSI), the average directional index (ADX), and average true range.

The month of July was a relatively quiet month for many currency pairs with a few isolated incidents of sharp moves in the yen, gold and a strong rise in U.S. equities.  Central banks and trade talk continued to dominate the markets and there remain many loose ends to be attended to in trade.

Stochastic oscillators have been used by investors for more than 50 years to predict market momentum and inform investment decisions. We’ve laid out the basics you need to know to start incorporating stochastic oscillators into your strategic playbook.

An important reason why many people fail in the markets is that they do not employ sound money management methods.  This is for a whole host of reasons and often because they get too emotionally involved.

When people are trading with their own money, it is close to impossible to not become emotionally involved at some stage.

Bollinger Bands are a trend indicator developed in the 1980s. They take a simple moving average (SMA) and track a standard deviation away from that average on either side. On a graph, this manifests as three lines: a simple moving average (SMA), an upper band, and a lower band.