TRIX Indicator

Trix Indicator Explained

The triple exponential average (TRIX) indicator was first presented in the 1980s by Jack Hutson, who worked as an editor for a magazine on technical analysis in the area of ​​stocks and commodities. The TRIX indicator is an oscillator that is primarily used to identify oversold and overbought market conditions whilst it can also be used as a momentum indicator. TRIX uses a triple smoothing to help filter out insignificant price movements, also known as “market noise”. A signal line can be applied to look for signal line crossovers whereas directional bias can be determined with absolute levels and bullish/bearish …READ MORE

What Is The Fractal Adaptive Moving Average & How To Trade With It

Fractal Adaptive Moving Averages

The Fractal Adaptive Moving Average or better known as FRAMA, is a technical indicator developed by John Ehlers. The indicator is based on the algorithm that utilizes EMA (exponential moving average) and prevailing price fractals. What is the Fractal Adaptive Moving Average? According to John Ehlers, that market prices are fractal. Fractals are intricate patterns that create continuous shapes. Fractal shapes are almost similar. This means they have similar characteristics. This definition is based on a mathematical principle. John Ehlers stated that if a certain pattern is removed from charts like a 5-minute or a daily chart, a trader may …READ MORE

What Are Support & Resistance Indicators & How To Trade Them

Support and Resistance Indicators

The support and resistance levels can help traders to try and identify the direction of the market by pointing price data. What are Support and Resistance indicators? The support and resistance level indicators are those tools that prevent the price from going in a particular direction. Support levels occur when there is a high demand for a certain asset. When the price starts to decline, it forms a support line.  The resistance level appears when there is an increase in the supply of a specific asset. When the price rises, it creates a resistance line. The support and resistance indicators …READ MORE

What Are Volatility Indicators & How To Trade Them

Volatility Indicators

Volatility indicators are a type of technical analysis tool that are used to try and determine the overall market volatility and for potential exit and entry points into the markets. What are Volatility indicators? Market volatility moves in cycles of highs and lows. Volatility tells traders about the direction of the current market and indicates future price movements. Traders need to look for different kinds of volatility for price movements: They are: Historical volatility – calculated from previous price changes. Future volatility – makes predictions about future movements. Forecast volatility – an overall estimate of future volatility. Implied volatility – …READ MORE

What Are Trend Indicators & How To Trade Them

Trend Indicators

Trend indicators are used to follow the price movements of an asset in a particular direction. Traders will plot them on their charts to try and clearly identify the direction of the market. What are the Trend Indicators? Trend indicators are based on mathematical calculations that illustrate signal lines to identify the market situation. Types of Trend traders There are plethora of trend indicators. Some of the most common are: Moving Averages MACD (moving average convergence divergence) RSI (relative strength index) Stochastics Bollinger Bands OBV (on balance volume) Fibonacci retracements ADX (average directional index) Ichimoku cloud Standard deviation Here’s an …READ MORE