Forex is the world’s largest currency market in the world that remains for 24 hours a day, 5 and half days a week. It deals in currency worth over $5 trillion per day and is one of the most volatile trading arenas currently in existence. So, to reap profits from this currency arena, a trader needs to ponder on two basic principles – speed and accuracy. However, there is another factor that affects the efficiency of a trader highly – it is called Forex indicator alerts.
A brief insight:
To put it simply, indicators are statistical tools that aid investors in making precise decisions while trading. These are kind of alerts or signals with the help of which, traders get to know which currency to trade on; or even chalk out their strategies with changing volatilities. There are several kinds of indicators such as SMA indicators, RSI indications, ATR lagging indicators and so on. Therefore, it is a must to get hold of a few crucial ones that prove to be highly productive and beneficial for investors.
1. SMA indicator:
SMA also known as Simple Moving Average is one of the oldest indicators currently looming the market. Although its origin is still unknown, the primary use of an SMA is to smooth out the effect of changing price trends in the market. Every investor uses an SMA sometimes in combination to other indicator alert Forex to formulate price trends and the relative floor and ceiling values of a currency pair.
Two variables find use in SMA computation – price and period. Traders using simple moving averages for price forecast are normally long term investors and look to build a support and resistance line; this forms the base of their investment decisions.
2. RSI indicators:
The primary use of RSI charts is to determine overbought and oversold conditions of a price action. It finds use in calculating relative changes or differences between highest and lowest closure price of a particular currency pair. It also helps in calculating entry and exit levels of this currency trend through Forex indicator alerts.
Experts often describe RSI as an oscillator since its resulting curve fluctuates between 0 and 100. Any reliable RSI indicator includes warning points at its 30 and 70 value marks. Values crossing the 85 mark for instance represent overbought condition while below 15 represents an oversold situation.
3. RVI indicators:
Quite similar to stochastic, Relative Vigor Index or RVI signals a shift in price trend when prices start moving towards a bullish market. RVI also serves as an oscillator since its value fluctuates between positives and negatives. Its pivot point revolves around 0.0 and serves as one of the most crucial indicator alert Forex in this market.
RVI finds its primary use in 15 min charts with a Green Line and a Red Line. While green represents an optimum selling point, Red directs towards hedging a position.
So, get hold of the correct indicators so as to procure the maximum profits from this market. Forex indicator alerts turn emerge to be one of the most crucial tools of this currency arena. So, contact a broker today and start your career in this currency market.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.