Title: Using Forex Technical Indicators
1Using Technical Indicators
2Bill Williams Indicators
Due to having a good understanding in
the psychology of market Bill Williams developed
his own method of trading which is based on
meanwhile using a rational approach to the
analysis of the market and the irrational logic
of chaos. To understand the overall structure of
the market B. Williams advised to analyze the
market through the following five
dimensions Fractal (phase space) The driving
force (energy phase) Acceleration / deceleration
(power phase) Zone ( combination of strength /
power phase) Balance Line And to understand and
analyzing these dimensions there have been
established a number of indicators. To learn
more visit http//www.ifcmarkets.com/en/ntx-ind
icators/bill-williams-indicators
3Acceleration/Deceleration (AC) Indicator
- Acceleration/Deceleration (AC) Oscillator
Acceleration/Deceleration (AC) technical
indicator signals the acceleration or
deceleration of the current market driving
force. The indicator is fluctuating around a
median 0.00 (zero) level which corresponds to a
relative balance of the market driving force with
the acceleration. Positive values signal a
growing bullish trend, while negative values may
be qualified as a bearish trend development. The
indicator changes its direction before any actual
trend reversals take place in the market
therefore it serves as an early warning sign of
probable trend direction changes. AC bar
chart is the difference between the value of 5/34
of the driving force bar chart and 5-period
simple moving average, taken from that bar
chart. AO SMA(median price, 5)-SMA(median
price, 34) AC AO-SMA(AO, 5) To learn more
visit http//www.ifcmarkets.com/en/ntx-indicator
s/ntx-indicators-accelerator-decelerator-oscillato
r
THESE INSTRUMENTS GREATLY ENLARGE THE
POSSIBILITIES OF CREATING TRADING STRATEGIES AND
DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY
ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE
TO THE NATURE OF EACH ASSET PRICING, "GOLDEN
INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND
SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE
SIGNALS FOR OPENING A RISK-BASED BALANCED
POSITIONS.
4Alligator Indicator
- Acceleration/Deceleration (AC) Oscillator
Alligator is an indicator designed to signal a
trend absence, formation and direction. Bill
Williams saw the alligator's behavior as an
allegory of the market's one the resting phase
is turning into the price-hunting as the
alligator awakes so that to come back to sleep
after the feeding is over. The longer the
alligator is sleeping the hungrier it gets and
the stronger the market move will be. The
indicator consists of 13-, 8- and
5-period smoothed moving averages shifted into
the future by 8, 5 and 3 bars respectively which
are colored blue, red and green representing the
alligators jaw, teeth and lips. The Alligator is
resting when the three averages are twisted
together progressing in a narrow range. The more
distant the averages become, the sooner the price
move will happen. MEDIAN PRICE (HIGH LOW) /
2 ALLIGATORS JAW SMMA (MEDEAN PRICE, 13,
8) ALLIGATORS TEETH SMMA (MEDEAN PRICE, 8,
5) ALLIGATORS LIPS SMMA (MEDEAN PRICE, 5,
3) To learn more visit http//www.ifcmarkets
.com/en/ntx-indicators/alligator
THESE INSTRUMENTS GREATLY ENLARGE THE
POSSIBILITIES OF CREATING TRADING STRATEGIES AND
DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY
ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE
TO THE NATURE OF EACH ASSET PRICING, "GOLDEN
INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND
SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE
SIGNALS FOR OPENING A RISK-BASED BALANCED
POSITIONS.
5Awesome Oscillator (AO)
- Acceleration/Deceleration (AC) Oscillator
Awesome Oscillator (AO) is a momentum indicator
reflecting the precise changes in the market
driving force which helps to identify the trends
strength up to the points of formation and
reversal. There are three main signals which may
be seen Saucer - three consecutive columns above
the nought line the first two of which must be
colored red, while the third one is colored green
and higher than the previous (second) one.
Nought line crossing - the histogram crosses the
naught line in an upward direction changing its
values from negative to that of positive ones. In
this situation we have a Buy signal. Two pikes -
the indicator displays a Buy signal when the
figure is formed by two consecutive pikes both of
which are below the naught line and the
later-formed pike is closer to the zero level
than the earlier-formed one. The Sell signal
would be given by the reverse formation. Awesome
Oscillator is a 34-period simple moving average,
plotted through the central points of the bars
(HL)/2, and subtracted from the 5-period simple
moving average, graphed across the central
points of the bars (HL)/2. MEDIAN PRICE
(HIGHLOW)/2 AO SMA(MEDIAN PRICE, 5)-SMA(MEDIAN
PRICE, 34) To learn more visit
http//www.ifcmarkets.com/en/ntx-indicators/awesom
e-oscillator
THESE INSTRUMENTS GREATLY ENLARGE THE
POSSIBILITIES OF CREATING TRADING STRATEGIES AND
DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY
ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE
TO THE NATURE OF EACH ASSET PRICING, "GOLDEN
INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND
SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE
SIGNALS FOR OPENING A RISK-BASED BALANCED
POSITIONS.
6Fractals Indicator
- Acceleration/Deceleration (AC) Oscillator
Fractals is an indicator highlighting the charts
local heights and lows where the price movement
had stopped and reversed. These reversal points
are called respectively Highs and Lows. Fractals
are formed around a group of five consecutive
bars the first two of which are successively
reaching higher (or diving deeper) and the last
two descending lower (or growing higher) with the
middle one being the highest (or the lowest)
result in the group accordingly. Buy fractal is
an arrow pointing to the top Sell fractal is an
arrow pointing to the bottom To learn
more visit http//www.ifcmarkets.com/en/ntx-indic
ators/fractals
THESE INSTRUMENTS GREATLY ENLARGE THE
POSSIBILITIES OF CREATING TRADING STRATEGIES AND
DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY
ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE
TO THE NATURE OF EACH ASSET PRICING, "GOLDEN
INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND
SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE
SIGNALS FOR OPENING A RISK-BASED BALANCED
POSITIONS.
7Gator Oscillator (GO)
- Acceleration/Deceleration (AC) Oscillator
The Gator Oscillator (GO) is a supplement to
the Alligator indicator and is used alongside
with it showing the absolute degree of
convergence/divergence of the Alligator's
three SMAs pointing at the Alligator's periods of
slumber and awakeness (i.e. trending and
non-trending market phases). The Alligator's
activity periods are divided into the following
four Gator awakes - the bars on different sides
of the naught line are colored differently. Gator
eats - green bars on both sides of the naught
line. Gator fills out - single red bar during the
"eating" phase. Gator sleeps - the bars on both
sides are red To learn more visit
http//www.ifcmarkets.com/en/ntx-indicators/gator-
oscillator
THESE INSTRUMENTS GREATLY ENLARGE THE
POSSIBILITIES OF CREATING TRADING STRATEGIES AND
DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY
ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE
TO THE NATURE OF EACH ASSET PRICING, "GOLDEN
INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND
SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE
SIGNALS FOR OPENING A RISK-BASED BALANCED
POSITIONS.
8Market Facilitation Index (MFI) Indicator
- Acceleration/Deceleration (AC) Oscillator
The MFI is designed to indicate how much of a
willingness to move the price is there in the
market. Green bar - both MFI and volume are up.
Increasing trading activity means market movement
acceleration. We may join the trend. Blue bar -
MFI is up, volume is down. The movement is
continuing although the volume has dropped.
The trend will soon be reversing. Pink bar - MFI
is down, volume is up. The slowing down movement
while volume is raising may indicate a possible
break through, often a U-turn. Brown bar - both
MFI and volume are down. The market is no longer
interested in the current direction and is
looking for signs of a future development. BW
MFI (HIGH-LOW)/VOLUME To learn more visit
http//www.ifcmarkets.com/en/ntx-indicators/market
-facilitation-index
THESE INSTRUMENTS GREATLY ENLARGE THE
POSSIBILITIES OF CREATING TRADING STRATEGIES AND
DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY
ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE
TO THE NATURE OF EACH ASSET PRICING, "GOLDEN
INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND
SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE
SIGNALS FOR OPENING A RISK-BASED BALANCED
POSITIONS.
9THANKS FOR ATTENTION
BEST REGARDS, IFC MARKETS