Moving Average (MA) measures the average of a certain body data. Its purpose is to identify a new trend or that an old trend has ended or reversed. However, MA line lags the market action because it averages the previous…
Continue ReadingDeveloped by J. Welles Wilder Jr., RSI is a momentum oscillator that traders ultilise to measure speed of changes in price movements. Although regarded by many as a general trend indicator, it could also be used to generate relevant signals…
Continue ReadingThe technique of Bollinger Bands was developed by John Bollinger. The Bollinger Bands are two bands that are placed around a moving average. In addition, Bollinger Bands are placed at two standard deviations above and below the moving average, which…
Continue ReadingWe have discussed trendline and its significance to trading and to understand channel which is a continuation of the trendline, then we suggest you read trendline. The channel line is when prices trend between two parallel lines. A well-drawn channel…
Continue ReadingThe basic trendline is probably one of the simplest and the most valuable of technical analytic tool. Many traders tend to ignore using this specific indicator to analyse the market just because they do not have useful information on how…
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