Download Reversal Dashboard Indicator Scans All Pairs For The Greatest-Probability REVERSAL! The main buyers sellers forex indicator The assessment of the balance of Bulls and Bears forces has the great influence.
Bulls Power: definition and formula Bulls Power is the difference between the highest price and 13 – period exponential moving average. When there is a rising trend in the market, the indicator is bigger than zero. Bulls Power indicator is less than zero. Bears Power: definition and formula Bears Power indicator is opposite than the Bulls Power indicator. Then the downward trend is weak, the indicator Bears Power will be less than zero. In this case the slope of the last shows the direction of prices.
A trendline is probably the most basic tool in the technical trader’s toolbox. They are easy to understand and can be used in combination with any other tools you might already be using. By definition, a trendline is a line connecting two or more lows or two or more highs, with the lines projected out into the future. Ideally, traders look at these extended lines and trade on prices reacting around them, either trading a bounce of the trendline.
This strategy is for trading intraday and for swing trading. 15 min, 30 min, 60 min, 240 min, daily. Trade only in the direction of the trend following the inclination of the SHI channel true. SDO Dot Sight line green crosses upward line red. SDO Dot Sight line red crosses upwar ward line green. This entry was posted in Best Forex Trading Systems.
Volume confirms the strength of a trend or suggests about its weakness. A rising volume indicates rising interest among traders, while a falling volume suggests decline in interest. Extreme Volume readings — Climax Volume often highlight price reversals. Points where market trades on high volume are the points of strong support and resistance. Volume is the second most valuable data after the price itself. Large volume signifies that there is large number of market participants involved, including financial institutions.
Small volume tells that there are very little participants in the market, neither buyers no sellers have any significant interest in the price. In addition, no financial institutions will be involved, thus a market is going to be moved only by individual traders and so the move will be weak. Volume helps to learn about the health of a trend. When price is going up and volume is decreasing, it tells traders that a trend is unlikely to continue.
A downtrend is strong and healthy if volume increases as price moves lower and decreases when it begins retracing upwards. When price is falling and volume is decreasing, the downtrend is unlikely to continue. Price will either continue to decrease, but at a slower pace or start to rise. To understand the nature of spike in volume before a trend reversal, traders need to know how the data for volume indicator is gathered in Forex. Forex volume cannot be measured precisely as it is done, for example, in Equity market, where every share traded equals 1 volume, and selling 200 shares means 200 in volume. Forex by nature cannot count how many contracts and what sizes of contracts were traded at any given time, because the market is wide and decentralized.
As it moves up and down volume adds up. When volume rises, it means lots of participants are actively selling and buying currencies. When volume spikes at certain price level, traders know that there was lots of interest shown by traders to that price level. If there is a lot of interest, it means the level is an important one. This simple observation of a volume indicator allows identify important Support and Resistance levels, which would certainly play significant role in the future. Climax Volume — traders should look for clues from the price itself. Single volume spikes only bring price to a halt.
A lot of stand-alone average volume spikes occur during fundamental economic announcements on daily basis. News can cause spike in volume for a single day and then volume disappears again. Reversals, however, happen not over one day but a series of days. If higher than average volume stays on the market for several to many days a huge volume spike — volume climax — will crown a point of market reversal. Volume indicator helps to validate all kinds of breakouts.