Indicators are undoubtedly a very effective analysis and trading tools. They present signals in a very clear way and easy to understand and interpret. However, when combined with price action and chart reading they unfold their full profit potential. In this article you will learn how to use indicators to confirm trading signals and empower your chartists trading decisions.
When trading FOREX with indicators it is important to differentiate between leading and lagging indicators. This separation is important for a thorough understanding of the markets and trading, and also for ensuring that one is not trading with correlative indicators. In this article you will learn to identify leading and lagging indicators for improved performance.
Relative Strength Index is a popular overbought-oversold indicator, developed by the famous indicator researcher and developer J. Welles Wilder. Its basis involves comparing the up-movements and the down-movements, to identify overbought and oversold periods in prices.
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