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Why do we use technical indicators? What do they do?
over 2 years ago
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The central idea behind technical analysis is that past price actions can help predict future price behavior. This is why chart patterns, candlestick formations, and other technical indicators are used to determine whether an uptrend or downtrend is due. And since most traders play by these technical ideas, their price behavior forecasts tend to be self-fulfilling. For instance, a double bottom formation usually indicates a reversal from a downtrend. Since traders expect that an uptrend would form, they would go long on the pair. As more and more traders buy up the pair, the price tends to increase (high demand, high price) until such a time that the buying pressure is too much - and this could be reflected in another technical indicator, such as the stochastic oscillator. For more details on what specific technical indicators do, you can check out the School of Pipsology on Babypips.com.
over 2 years ago
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Technical indicators are ways to alert, confirm and predict possible movements of price. For example, it can alert you if the momentum of the upward or downward move is slowing down. It could also serve as a confirmation signal that support or resistance is holding or breaking. Some use them to determine possible entry and exit points. Finally, it could be a way to determine where price is heading.
over 2 years ago
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We use technical tools like indicators to help us predict the direction of prices because it reflects the market at a particular time.
over 2 years ago
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Technical indicators are often used by active traders in the market. It is designed primarily for analyzing short-term price movements; it predicts the future price levels, the general price direction by looking at past patterns. I hope this helps.
over 2 years ago
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ForexEA
BabyPips school is great but if you will need to download some Forex indicators, go to http://pipburner.com/free-forex-tra...
6 months ago
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