Trading with Indicators

Technical indicators are an important tool for all technical analysts. Do you know what a ‘moving average indicator’ is or why it is important for analyzing the market? In this course, you will be introduced to the concept of moving averages and be shown the moving average indicator, what it is used for and how to set up your charts to get the most from it. You will be taught how to implement the two most common moving average indicators, which are simple moving averages (SMA) and exponential moving average (EMA). See how they react to price and how they can be used as trade signals. The material also goes on to discuss moving average convergence divergence (MACD) and how it can be used to develop valuable insights into price momentum. You will be shown MACD on a chart, see how MACD reacts to price change and how traders use the indicator to extract valuable clues about the market. Perhaps most importantly, you will be shown the limitations of MACD.

Next, be introduced to the parabolic SAR (stop and reverse) indicator and study how it can be used to determine the direction that an asset is moving. Also, you will learn about the Bollinger bands technical analysis tool and how it can be correctly applied to improve trading performance. You will be taught the concept of Bollinger band deviation pinching and master how it can be interpreted on a chart. Furthermore, you will be introduced to the stochastic indicator and how to set it up correctly. Understand what the stochastic indicator measures in a trade and when to use it - or not. You will be taught the concept of ‘overbought’ versus ‘oversold’ as well as %K (fast) and %D (slow) line crossovers. In addition, learners will gain an understanding of what ‘divergence’ is and what the limitations of the stochastic indicator are.

Lastly, master the relative strength index (RSI) indicator and how to set it up correctly to supercharge your analysis. The golden ratio is everywhere in nature, from DNA through to the proportions of galaxies. This course will show you how it extends to trading by introducing you to the concept of the Fibonacci or golden ratio in trading and how you can apply Fibonacci to a chart. Break down how pivot points are used in technical trading to analyze support and resistance areas, what they can tell you, and their strengths and weaknesses. This course is suitable for new traders who have basic computer literacy who want to have the knowledge and skill needed for forex (foreign exchange) trading.