A number of popular and useful technical indicators are available to STRIFOR.org. In this article, we’ll take a brief look at some of these technical indicators and how they work, while providing a comprehensive list of all those available and how to use them.
STRIFOR technical indicators
There are hundreds technical indicators included by default in STRIFOR trading platform MT5, the most used are:
- Bollinger Bands
- Moving average (MM)
- Parabolic SAR
- Trading signals
Bollinger Bands consist of three moving averages, represented by lines on the chart. They are generally close to each other, but diverge from the central line as markets move towards this trading instrument. The closer the 3 lines remain to each other, the more stable the instrument. Conversely, the more irregular the spread between the 3 lines becomes, the greater the signs of market reversal.
It is not possible to predict market reversals with this indicator, but it can be useful for analyzing previous movements and seeing where reversals have taken place. The Bollinger Bands indicator is generally used in conjunction with other indicators.
Moving average (MA)
STRIFOR moving average indicator is the most popular indicator on the market and one of the simplest to understand. In absolute terms, the moving average follows 2 parameters: price and period. MM is the sum of all closing prices at a given period divided by the number of periods. This shows the average price for a given period in relation to the current price.
Expressed in mathematical formula, MM is represented by MM = sum (closing price, N)/N where N represents the number of calculation periods.
There are many variants of the moving average, based on the same principle, but used for different purposes. For example, the smoothed moving average compares the average historical price over a given period.
This indicator takes the form of a series of points above or below the price bars, with a point above indicating downward price movements and a point below indicating upward price movements.
A bullish trend corresponds to an increase in buying sentiment, while a bearish trend corresponds to an increase in selling sentiment.
The SAR indicator refers to a stop-and-reverse system. The purpose of this technical indicator is to determine the price trend of trading instruments, while drawing attention to any change in direction. When the price moves in a certain direction, the dots also move, first gradually and then accelerating over time.
The SAR indicator is sometimes useful for staying in profitable trends, but can prove unreliable in volatile movements. Many traders also turn to this indicator to determine their Stop Loss and Take Profit parameters.
STRIFOR Trading signals
The trading signals indicator is very simple in that it simply highlights the current trend of a specific trading instrument on the basis of its intraday ratio. Intraday means “within the day” and refers to the summary of sentiment for an instrument taken for that day during market opening hours.
When the trading signals indicator is active, you can press the information icon to display details of the trading instrument’s intraday summary.
How to open STRIFOR indicator?
- Log in to MT5 using the login details sent to you by mail.
- Click on the asset you wish to trade
- Click on Indicator
- Choose as many indicators as you need.
- And now you can start your trading session.
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