Home Forex technical analysis study of leading and lagging indicators 2 - leading indicators (oscillator)

Forex technical analysis study of leading and lagging indicators 2 - leading indicators (oscillator)

oscillator cashbackforexbroker the expression of cashback forex indicator value between the set level value or around a central line of up cashbackforexexness down indicators oscillator can remain at an extreme level for a long time (oversold or overbought), but they do not maintain the trend and the direction remains the same RSI indicators, parabolic steering indicators and stochastic indicators Each of these indicators can signal a potential reversal, which could signal the end of a previous trend and a change in the direction of price action. Remember what we said before about how to use the RSI, Parabolic Turn and Follow-Through indicators? If youve forgotten it by now, you should go back to the 5th grade. As you can see in the chart below, all three indicators issued buy forexrebateclub at the end of December, and if you took this trading opportunity, you would have made about 400 pips. In mid-April, the three indicators then issued another sell signal, after which the exchange rate fell rapidly again. Now, lets look at another example where the three leading indicators are used together, and this time, as you will see, the signals given by these indicators are not perfect. For example, in this case, the Parabolic Turn indicator is giving a sell signal in mid-February, while the Stochastic indicator is giving the opposite signal Which signal should you follow to trade? Of course, at this point the RSI indicator is just as clueless as you are, because it does not give any signals to buy or sell. As you can easily see in the chart above, the above indicators give quite a lot of false signals. If you choose to go short at this point, you may have lost a lot of money if you only do more from the buy signals sent by the stochastic and RSI indicators and ignore the sell signals sent by the parabolic steering indicator, you may also suffer losses again in mid-May What is wrong with such indicators? The answer is to be found in the method of calculating the above indicators: Stochastic is based on the highest and lowest prices over a period of time; RSI is based on the closing price of the price; Parabolic Turning has its own unique calculation method, which may lead to more confusing signals This is the characteristic of oscillators that assume that a particular price movement always leads to the same reversal Of course, this is not possible except to recognize that the leading indicators can give wrong trading signals, but we cant prevent these indicators from giving wrong trading signals. criteria before you choose to trade

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