Category Archive Finance FX

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What is Momentum?

What is Momentum?

 

Tutorial forex, forexfx, fx invest, investment, capital, trade, tradefx, trader, capitalforex, money, monetary, earn, exchange, foreign, Momentum,  parities , momentum indicator, the price movementThe momentum is an oscillator that represents the change in parities over a predetermined period of time. In other words, it is a display that indicates how much the corresponding parity has gained or lost in a specified period of time.

 

Momentum is a market anomaly that finance theory is difficult to explain. The fact that the price of any financial product is rising does not guarantee that prices will rise in the future. According to the effective market hypothesis, the increase in prices and the changes in demand and demand are determined by new information coming from the financial market.

The momentum indicator is calculated as follows;

 

Momentum = Last Closing / x Days Previous Closing * 100

Tutorial forex, forexfx, fx invest, investment, capital, trade, tradefx, trader, capitalforex, money, monetary, earn, exchange, foreign, Momentum,  parities , momentum indicator, the price movement

How to interpret the momentum indicator?

The momentum indicator is interpreted in two ways:

Method; it is possible to use it as a trend monitor. When the indicator bottoms up and turns up, AL should make a peak at the indicator, and when it goes down, the SAT should be decided. You should keep in mind that when the momentum indicator has a new peak or dip (compared to the peak and past in the past), the current trend will continue, but the rate of increase in prices slows down and the effects of senescence factors are weaker and prices may begin to fall after a while. Nevertheless, you must change the position of the signal produced by the indicator, waiting for the price movement to confirm it.

For example, the indicator peaked and turned, and you should wait for prices to fall.

The Method Momentum indicator can also function as an indicator of the future. When prices are rising and new peaks are made, the show can not do the new peak or the prices do not bottom out when the new bottom. In this case, incompatibility occurs and it is necessary to evaluate it as an early signal of the trend change.

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What is the MACD Indicator?

What is the MACD Indicator?

 

Tutorial forex, forexfx, fx invest, investment, capital, trade, tradefx, trader, capitalforex, money, monetary, earn, exchange, foreign, MACD Indicator, MACD, IndicatorThe MACD indicator is a trend indicator and a momentum indicator that shows the relationship between prices for two different moving averages. Basically, the 26-day exponential moving average is obtained by removing the 12-day exponential moving average. The MACD indicator uses an in-line signal line and is used as a trigger for sales signals. The MACD demonstration was developed by Gerald Appel in the 1970s.

 

How is the MACD INDICATOR INTERPRETED?

 

The use of 3 of the MACD indicators is an important and widely used interpretation method.

Intersections: When the MACD indicator falls below the signal line, a signal may indicate that a signal has arrived or that the sales clock has arrived. If the MACD indicator rises above the signal line, this upward signal is generated and the appearance of reception levels is marked. Many investors are waiting for the intersection level to be able to avoid false signals.

 

Disaggregation: If the price of a financial product differs from the MACD indicator, this current trend is over.

 

Abnormal Aspects: If the MACD indicator rises abnormally, it is displayed that this short-term moving average pushes up the average to the length. This indicates that the related financial product is in an overbought territory and will shortly return to normalcy. For investors also to underline the bottom border and lines. While the MACD indicator is above the zero line, it is on the short-term long-term average and indicates that upward movement may continue. The bottom of the zero line is the exact opposite of this.