Oscillators and Momentum Indicators
FX Signals – There are two types of charts indicators: leading and lagging. Which one suits you better?
Leading vs. Lagging Indicators
Leading indicators give signals BEFORE a new trend or reversal occurs, while lagging indicators give signals AFTER a trend or reversal. But that’s not all!
What is Margin Trading
How to Use Oscillators to Warn You of the End of a Trend
How do you spot a trend? Maybe lagging indicators can help you out!
How to Use MACD to Confirm a Trend
Is the trend you’re in ready to push forward or sputter out?
Summary: Leading and Lagging Indicators
Now that you know the pros and cons of both the lea
Oscillators and Momentum Indicators
Important Chart Patterns
Price action can make cool pictures on your chart…and they actually give a clue to market behavior too!
How to Trade Chart Patterns
Chart patterns are like that funny feeling you get in your tummy right before you let a fart explode. Here’s why!
How to Trade Double Tops and Double Bottoms
Hey look, doubles isn’t just a tennis term! Read all about double tops and double bottoms!
How to Trade the Head and Shoulders Pattern
A head and shoulders pattern is also a trend reversal formation. And you thought it was something to make your hair silky smooth and flake-free!
How to Trade Wedge Chart Patterns
If you’re thinking shoes or cheese, then you’ve got another thing coming! Wedges are in your charts too!
How to Use Rectangle Chart Patterns to Trade Breakouts
Now aren’t you glad you paid attention to your shapes when you were just a tot? Who would’ve guessed rectangles are used in trading too?
How to Trade Bearish and Bullish Pennants
Similar to rectangles, pennants are continuation patterns formed after strong moves.
How to Trade Triangle Chart Patterns
Can’t get enough of basic shapes? Feast your eyes on these triangle chart patterns!
Know the 3 Main Groups of Chart Patterns
You might know what the chart patterns are, but do you know when to use them?
Chart Patterns Cheat Sheet
If you’re having trouble remembering your new chart patterns, then here’s a cheat sheet just for you!
Oscillators and Momentum Indicators
Pivot Points
After you’re done with this section, Peter Parker won’t be the first thing that will come to your mind when you read the abbreviation “PP.”
What Are Pivot Points?
Pivot points can be used in identifying reversal or breakout areas. Read on to find out how to use these support and resistance levels.
How to Calculate Pivot Points
Wanna use pivot points in your trading but don’t know how to calculate them? Let us show you how!
How to Use Pivot Points for Range Trading
Check out these examples on how to use pivot points in range trading. Even better, we’ll show you how to combine candlestick analysis with pivot points!
How to Use Pivot Points to Trade Breakouts
As with all support and resistance levels, pivot point levels won’t hold forever. Learn how to make pips when pivot points fail!
How to Use Pivot Points to Measure Market Sentiment
Did you know that pivot points can also help you determine whether traders are more inclined to buy or sell a currency pair?
Know the 3 Other Types of Pivot Points
Leading vs. Lagging Indicators
In the previous grade, popular chart indicators were discussed.
We’ve already covered a lot of tools that can help you analyze potential trending and range-bound trade opportunities.
Still doing great so far? Awesome! Let’s move on. Welcome to Grade 6!
In this lesson, we’re going to streamline your use of these chart indicators.
We want you to fully understand the strengths and weaknesses of each tool, so you’ll be able to determine which ones work for you and which ones don’t.
Let’s discuss some concepts first. There are two types of indicators: leading and lagging.
How to Use Oscillators to Warn You of the End of a Trend
These indicators help you profit by predicting what prices will do next.
Leading indicators typically work by measuring how “overbought” or “oversold” something is.
This is done with the assumption that if a currency pair is “oversold”, it will bounce back.
A lagging indicator gives a signal after the trend has started and basically informs you “Hey buddy, pay attention, the trend has started and you’re missing the boat.”
Understanding Pivot Points
They don’t warn you of any upcoming changes in prices though, they simply tell you what prices are doing (rising or falling) so that you can trade accordingly.
How to Use Pivot Points to Measure Market Sentiment
You would “catch” the entire trend every single time IF the leading indicator was correct every single time. But it won’t be.
When you use leading indicators, you will experience a lot of fakeouts. Leading indicators are notorious for giving bogus signals which could “mislead” you.
Leading Economic Indicators
Haha. Man, we’re so funny we even crack ourselves up.
The other option is to use lagging indicators, which aren’t as prone to bogus signals.
Lagging indicators only give signals after the price change is clearly forming a trend. The downside is that you’d be a little late in entering a position.
Leading indicators or oscillators
Lagging or trend-following indicators
While the two can be supportive of each other, they’re more likely to conflict with each other.
Lagging indicators don’t work well in sideways markets.
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