Download Chart for better understand below indicator analysis
*Moving Average : We confirm price which is numerical or number or points in the meta trader4.For example 1.3200,1.3205,1.3209,1.3045 so on.These are price and price always move to move at a direction up or down.So what average the price on a certain period?Now you probable calculating it.Wait! Moving average an average price for a certain period.
1.3025+1.3026+1.3027+1.3028+1.3029 = 6.5135/5 = 1.3027
Now what useful information you get from it? You just get now what is moving average price, it is just simple but have some clue too......
In the meta4 you will find some kinds of moving average, like ...
1. SMA ( Simple Moving Average)
2. EMA ( Exponential Moving Average)
3. Smoothed
4. Linear Weighted
Moving average used by Open / Close / High / Low /Median / Typical / Weighted close prices.
Mostly use SMA & EMA.If you wish to trade longer time frame then use SMA if you trade shorter time frame use EMA because EMA display quick price average movement since trader want to trade in short frame quickly.
When you use it you find a curve line or graph line upper and lower. Trader usually enters trades when the line break since its focus on pressure for price movement. And SMA & EMA generally use the close price method. ( Please download my chart for better understanding)
*Bollinger Band: It is developed by John Bollinger near 1980.Mr. John uses Moving Average and deviation, where upper, lower and standard deviation in the middle. It is Volatility indicator. It provides the trader a relative definition of high and low price act as upper and lower bands.
Traders usually trade by Bollinger bands when its band breakout or buy at lower band and out at middle band sell at the upper band and out of the middle band. The middle band they use just neutral purpose.
Another way by Bollinger band when Bollinger bands become squeeze and wait for breakout!
In 2010 Mr. Bollinger release 3 types bands know as BBImpulse,percent bandwidth(%),bandwidth delta.1st is measure price changing 2nd is band width over a certain periods.3rd measure how changing the width of the band.
How do you can follow it:
***Look at when the MACD (blue line ) cross the signal line (red line)
***Look at when the MACD (blue line ) cross the zero scale.
***Find out Higher high or Lower low on the chart
(Later I will be discussing these on the chart pattern lesson, OK )
So MACD is 12.26.9 EMA (Fast, Slow, Signal). Another popular set of MACD is 5,35,5 for short time frame. The longer time frame you use it then it provide the best results.
https://www.dropbox.com/s/3uivk81n30gv3rg/Moving%20Average.gif?m
https://www.dropbox.com/s/5jm4su8y3zl5x0r/Bollinger.gif?m
https://www.dropbox.com/s/yh9xs34s40d7xgv/MACD.gif?m
*Moving Average : We confirm price which is numerical or number or points in the meta trader4.For example 1.3200,1.3205,1.3209,1.3045 so on.These are price and price always move to move at a direction up or down.So what average the price on a certain period?Now you probable calculating it.Wait! Moving average an average price for a certain period.
1.3025+1.3026+1.3027+1.3028+1.3029 = 6.5135/5 = 1.3027
Now what useful information you get from it? You just get now what is moving average price, it is just simple but have some clue too......
In the meta4 you will find some kinds of moving average, like ...
1. SMA ( Simple Moving Average)
2. EMA ( Exponential Moving Average)
3. Smoothed
4. Linear Weighted
Moving average used by Open / Close / High / Low /Median / Typical / Weighted close prices.
Mostly use SMA & EMA.If you wish to trade longer time frame then use SMA if you trade shorter time frame use EMA because EMA display quick price average movement since trader want to trade in short frame quickly.
When you use it you find a curve line or graph line upper and lower. Trader usually enters trades when the line break since its focus on pressure for price movement. And SMA & EMA generally use the close price method. ( Please download my chart for better understanding)
*Bollinger Band: It is developed by John Bollinger near 1980.Mr. John uses Moving Average and deviation, where upper, lower and standard deviation in the middle. It is Volatility indicator. It provides the trader a relative definition of high and low price act as upper and lower bands.
Traders usually trade by Bollinger bands when its band breakout or buy at lower band and out at middle band sell at the upper band and out of the middle band. The middle band they use just neutral purpose.
Another way by Bollinger band when Bollinger bands become squeeze and wait for breakout!
In 2010 Mr. Bollinger release 3 types bands know as BBImpulse,percent bandwidth(%),bandwidth delta.1st is measure price changing 2nd is band width over a certain periods.3rd measure how changing the width of the band.
*MACD ( Moving Average Convergence Divergence ): It is created by Gerald Appel in near 1970.It is a momentum or oscillator indicator which measure direction of changing trends and strength. Today it is vastly used in currency business. It displays trader signal calculating over a periodical data of closing price. It used 12,26 EMA and 9 EMA. There are 3 signal lines in MACD. Blue line (Minus of 26,12 EMA), Red line ( 9 EMA of blue line), Histogram (Bar graph) Minus of blue and red line.
How do you can follow it:
***Look at when the MACD (blue line ) cross the signal line (red line)
***Look at when the MACD (blue line ) cross the zero scale.
***Find out Higher high or Lower low on the chart
(Later I will be discussing these on the chart pattern lesson, OK )
So MACD is 12.26.9 EMA (Fast, Slow, Signal). Another popular set of MACD is 5,35,5 for short time frame. The longer time frame you use it then it provide the best results.
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