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Oscillators |
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If you chart the pattern of movement of the stock market, you’ll find that it isn’t an orderly pattern. The changes move in different directions as traders react to information that may affect a sector or the economy as a whole. Although the pattern appears chaotic, traders still need to analyze it in order to figure out when to get in or out. One method of creating sense out of the seeming chaos is by using oscillators.
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Reversal Figures |
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As stock prices move, they do so in trends, i.e. a particular movement in one direction for a finite period of time. Because the period of time is finite, eventually the movement will stop and go in the opposite direction. This is what is referred to as a reversal. When a reversal is in process, the movement forms a pattern that can be charted.
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Triangles |
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Triangles are patterns created by sideways trading action. The widest part of the price range occurs earliest in the development of the pattern. As time passes, the trading range narrows. If you draw trendlines along the trading range, it forms the shape of a triangle.
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Technical Indicators |
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Relative Strength Index/RSI
This is a momentum indicator, measuring a currency’s price relative to itself. It is both past performance and front-weighted, meaning it gives a better velocity reading. It is less affected by sharp rises or drops in a currency pair’s performance. The RSI’s absolute levels are 1 and 100.
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| Symbol |
Rate |
| GBP:CHF |
1.747703 |
| GBP:JPY |
155.484239 |
| GBP:USD |
1.638403 |
| NZD:USD |
0.627050 |
| EUR:CAD |
1.545998 |
| EUR:CHF |
1.516857 |
| EUR:GBP |
0.867915 |
| EUR:JPY |
134.947096 |
| EUR:USD |
1.421994 |
| AUD:JPY |
76.394373 |
| AUD:USD |
0.805000 |
| USD:CAD |
1.087204 |
| USD:CHF |
1.066711 |
| USD:JPY |
94.899879 |
| USD:SEK |
7.613010 |
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Disclimer: This website is for informational purposes only and is not intended to provide
specific commercial, financial, investment, accounting, tax, or legal advice.
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© ForexCenter.com, 2005, All Rights Reserved
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