Resource Centre

Technical Indicators - What they Mean

  • Written by The Editor
  • Category: Resources

RSI (Relative Strength Index)
The RSI indicators can be used to describe the speed at which prices move over a given time period.

An RSI above 70 can indicate a currency pair is overbought while an RSI below 30 can indicate the pair is oversold.

Stochastic Oscillator
The Stochastic Oscillator compares where a security's price closed relative to its trading range over a given time period.

The security or index is generally considered oversold when the Oscillator falls to 20%, while a reading of 80% is considered overbought.

MACD (The Moving Average Convergence/Divergence)
This indicator shows the relationship between two moving averages of prices.

A bearish signal is provided when the main moving average line drops below the second moving average line, and vice versa.

ADX (Average Directional Index)
This indicator quantifies a trend's strength regardless of whether it is up or down.

An index rising above zero provides a bullish signal while an index falling below zero provides a bearish signal.

Momentum Indicator
The momentum of a security is the ratio of today's price compared to the price at a given point in the past.

If the security's price is higher today, the momentum indicator will be considered strong. If the security's price is lower today, the momentum Indicator will be weak.

Custom Charting and Watch Lists

  • Written by Super User
  • Category: Resources