Subscribe toWed, 15 Apr 2020 15:44:44 GMT
Source: Dukascopy Bank SA
Technical analysis is a trading specialty that helps to identify trading opportunities by analysing historical data. Technical indicators or "technicals" are essential in technical analysis.
Technical indicators are mathematical or heuristic calculations based on data, such as price, volume, open interest and etc.
There are two types of "technicals":
- Overlays that use the same scale as prices; these indicators are plotted over the top of a price chart, for example, moving averages.
- Oscillators that fluctuate between a local minimum and maximum; these technicals are plotted above or below a price chart, such as RSI or MACD.
On JForex 3 platform, there are 13 groups of technical indicators. One can find Bill Williams' indicators, cycle indicators, momentum indicators, etc. Overall, the platform offers more than 250 built-in indicators.
A trader is able to adjust the way an indicator is calculated, as well as modify its appearance on the chart. A user can give the results of one indicator as an input for another indicator.
© Dukascopy Bank SA
Also, it is possible to calculate an indicator from a custom data, as well as choose particular time frames where to apply a "technical".
© Dukascopy Bank SA
Moreover, a trader can choose the following options: to recalculate an indicator on new candle only or to highlight the time period zone.
Technical indicators can be useful for predicting future price movements. However, it is effective to use different indicators at the same time for more precise signals.
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