Technical Indicators
- Average True Range
- Bollinger Bands
- Linear Regression
- Moving Average Convergence/Divergence (MACD)
- Momentum
- Moving Average
- Parabolic SAR
- Relative Strength Index (RSI)
- Standard Deviation
- Stochastic
Momentum
Momentum is the rate of acceleration of a currency's rates.
Methods of usage
- As an oscillator that follows the trend: a signal for buy occurs when the indicator reaches the bottom of downward curve and then starts growing; a signal for sell occurs when the indicator the top of upward curve and then starts declining.
- As a forerunning indicator: the proximity of the market to top/bottom is accompanied by the drastic surge of the indicator, following by decline in the value of the indicator while the rates continue to rise/fall (or move horizontally). In such case divergence takes place.
