Trading
is like building a house--you gotta have the right tool for the job at hand. So
let's put more tools in our tool box!
Lessons on Common Chart Indicators
1.
Bollinger Bands
What
better way to start building up your trading toolbox than by reading up on
Bollinger Bands!
2.
Moving Average Convergence Divergence (MACD)
The MACD
is used to identify moving averages that indicate a new trend. With a MACD,
it's all about three numbers.
3.
Parabolic SAR
In
trading trending markets, it is equally important to identify when the trend
ends. The parabolic SAR might be just what you need!
4.
Stochastic
What
makes Stochastic one of the most favorite tools of many BabyPips.com trade
bloggers?
5.
Relative Strength Index
If you
find that Stochastic isn't your cup of tea, then you might want to take a look
at the good ol' RSI.
6.
Average Directional Index
ADX is
typically used to identify whether the market is ranging or starting a new
trend. Here's how traders usually read ADX signals:
7.
Ichimoku Kinko Hyo
No,
"Ichimoku Kinko Hyo" ain't Japanese for "May the pips be with
you," but it can help you grab those pips nonetheless.
8.
Putting It All Together
Now that
you know how some of the most common chart indicators work, you're ready to get
down and dirty with some examples.
9.
What is the Most Profitable Indicator?
Now on to
the good stuff: Just how profitable is each indicator on its own?
1.
Summary: Common Chart Indicators
Here's a
recap of the latest trading tools that you've learned that will make your momma
proud!
