In forex education, the momentum indicator is considered extremely important and useful. In this article, we will examine all the possibilities who offers in forex trading and how we should use it.
The momentum indicator, according to forex education is an oscillator. His line moves above or below "100". When indicators line reaches maximum or minimum values, the price is in overbought or oversold condition.
Traders use the indicator in order to identify overbought and oversold conditions and the power of the trend. Momentum indicator can show the trend direction and at the same time can compare the current price from the past prices. In this way can measure how quickly the price is changing.
In forex education, you can learn about a few indicators who considered extremely important and useful because they offer a great number of advantages to traders. One of these indicators is Andrew's Pitchfork. Personally, I think that is better to speak for a tool and not for an indicator. With this article of forex education, will try to describe all the details every forex trader needs to know in order to use this excellent tool successfully in his daily occupation in the forex market.
Andrew's Pitchfork is an indicator of forex technical analysis who used not only to design trend channels but also to identify possible areas where there are opportunities for trade.
For those traders who have recognized the value of forex education will know the importance that has been given to the indicator Relative Strength Index (RSI). The Relative Strength Index (RSI) was developed by J. Welles Wilder, Jr.
According to forex education, this indicator is able to determine overbought and oversold price levels as well as generate buy and sell signals. Is well known, very popular and widely used from traders community. It is a momentum oscillator and as such it measures the rate of change of a given security�s price. Since it is also a bounded oscillator, it allows to spot overbought and oversold areas on the price chart.
We can calculate the Relative Strength Index (RSI) using the following formula:
Support - S1 : 1.4872| S2 : 1.4846| S3 : 1.4807 Resistance - R1 : 1.4936| R2 : 1.4975| R3 : 1.5001 Main Trend - Bearish Intraday Trend - Bearish According to 4H chart of forex technical analysis for the exchange rate GBPUSD, the price break downward the daily channel (black line) and close almost at the median line of Andrew's Pitchfork (blue lines). Also, price remains below EMA(50) and EMA(200) which have a downward cross between them.
Considering all the details from the charts of forex technical analysis we can detect all critical levels and trading targets for H1 and H4 timeframes:
Support - S1 : 1.0823| S2 : 1.0779| S3 : 1.0753 Resistance - R1 : 1.0893| R2 : 1.0918| R3 : 1.0963 Main Trend - Bearish Intraday Trend - Bearish Studying the 4H chart of forex technical analysis for the exchange EURUSD, we realize that after the announcement of US interest rate the pressure for EURUSD lead price below EMA(50) and EMA(200), but the cross between them remain in an upward direction. Finally price close between EMA(50) and EMA(200). Also, we observe that the price move within the upper channel of Andrew's Pitchfork (blue lines).
Considering all the details from the charts of forex technical analysis we can detect all critical levels and trading targets for H1 and H4 timeframes:
Support - S1 : 130.642| S2 : 129.460| S3 : 127.894 Resistance - R1 : 133.390| R2 : 134.956| R3 : 136.138 Main Trend - Bearish Intraday Trend - Bearish Analyzing the 4H chart of forex technical analysis for the exchange rate EURJPY you can notice that the price break downward the channel (black lines) and finally the price close outside of the channel and below of EMA(50) and EMA(200). The cross between two EMA remains upward. Also, we can observe two Andrew's Pitchfork. The next movement of the price will determine which of them is valid.
Considering all the details from the charts of forex technical analysis we can detect all critical levels and trading targets for H1 and H4 timeframes:
Support - S1 : 179.263| S2 : 178.069| S3 : 175.735 Resistance - R1 : 182.791| R2 : 185.125| R3 : 186.319 Main Trend - Bearish Intraday Trend - Bearish The 4H chart of forex technical analysis of the exchange rate GBPJPY can give us very clear the technical view. The price moves within the upper channel of Andrew's Pitchfork and remains below EMA(50) and EMA(200). The exchange rate accepts strong pressure who lead the price at a local double bottom on the daily chart.
Considering all the details from the charts of forex technical analysis we can detect all critical levels and trading targets for H1 and H4 timeframes:
The forex education where must have every trader is very important. Is absolutely necessary the full understanding of the utility and the way of use if not for all, at least, for the most important indicators. One of these indicators is the Commodity Channel Index.
The Commodity Channel Index (CCI) is an oscillator introduced in the 1980s and used by many traders to pinpoint market entries. Even though its name refers to commodities, CCI can also be used to trade currencies and other markets. Forex education informs us that traditionally CCI can be used in a variety of market conditions, including breakouts, ranges, and trends.
The commodity channel index (CCI) is an oscillator indicator that helps for analyzing overbought and oversold conditions.
The commodity channel index (CCI) helps indicate the weakening or the end of a trend and a possible change in trend direction.
Support - S1 : 1.0930| S2 : 1.0876| S3 : 1.0826 Resistance - R1 : 1.1035| R2 : 1.1085| R3 : 1.1139 Main Trend - Bullish Intraday Trend - Bullish The exchange rate EURUSD keep his strength and his upward momentum. According to forex technical analysis on 4H chart, the upward reaction reaches 50% Fibonacci level. The price breaks upward Andrew's Pitchfork. EMA(50) and EMA(200) have an upward cross between them. If we observe price action we will see that price is forming since now a triangular formation.
Considering all the details from the charts of forex technical analysis we can detect all critical levels and trading targets for H1 and H4 timeframes:
Support - S1 : 1.5146| S2 : 1.5078| S3 : 1.5031 Resistance - R1 : 1.5261| R2 : 1.5308| R3 : 1.5376 Main Trend - Bullish Intraday Trend - Bullish Studying the forex technical analysis on 4H chart for the exchange rate GBPUSD, we can observe that the price remains above EMA(50) and EMA(200). There are two Andrew's Pitchfork. Price move within the lower channel of the first Andrew's Pitchfork (blue lines). Also, price move within the upper channel of the second Andrew's Pitchfork (red lines).
Considering all the details from the charts of forex technical analysis we can detect all critical levels and trading targets for H1 and H4 timeframes:
Support - S1 : 132.429| S2 : 131.947| S3 : 131.274 Resistance - R1 : 133.584| R2 : 134.257| R3 : 134.739 Main Trend - Bullish Intraday Trend - Bullish Observing the 4H chart of forex technical analysis for the exchange rate EURJPY, we will see that price move above EMA(200) and below EMA(50) which have an upward cross between them. Also, price moves within a channel.
Considering all the details from the charts of forex technical analysis we can detect all critical levels and trading targets for H1 and H4 timeframes:
Support - S1 : 183.462| S2 : 182.761| S3 : 181.967 Resistance - R1 : 184.957| R2 : 185.751| R3 : 186.452 Main Trend - Bearish Intraday Trend - Bearish Analyzing the 4H chart of forex technical analysis for the exchange rate GBPJPY we can observe that the price remains below EMA(50) and EMA(200), and at the same time moves within the upper channel of Andrew's Pitchfork. Also, we have to notice that there is a possibility price action to form a triangular formation.
Considering all the details from the charts of forex technical analysis we can detect all critical levels and trading targets for H1 and H4 timeframes:
The forex education is probably the most important activity in the daily involvement of a trader on the forex market. Truly, a very well educated trader who has knowledge will certainly have a much better chance to reach the success.
As forex signals provider realizes the importance of forex education and will try to contribute with a series of articles starting from the indicator Average True Range.
The Average True Range ("ATR") is a measure of volatility it means that shows how much the price of an asset has been moving over a period of time.
Support - S1 : 1.0825 | S2 : 1.0770 | S3 : 1.0704 Resistance - R1 : 1.0945 | R2 : 1.1010 | R3 : 1.1065 Main Trend - Bearish Intraday Trend - Bullish Studying the 4H chart of forex technical analysis for the exchange rate EURUSD you can observe that price break upward the triangular formation. Price remain above EMA(50) and EMA(200) and move within the upper channel of Andrew's Pitchfork.
Considering all the details from the charts of forex technical analysis, we can detect all critical levels and trading targets for H1 and H4 timeframes:
Support - S1 : 133.287 | S2 : 132.668 | S3 : 132.019 Resistance - R1 : 134.555 | R2 : 135.204 | R3 : 135.823 Main Trend - Bullish Intraday Trend - Bullish We observe on the 4H chart of forex technical analysis for EURJPY that the price finds support at the lower side of the daily channel and proceed to a reaction almost 55% retracement. At this point, the price finds strong resistant from EMA(200) on the daily chart. Is very clear that at the same point there is the median line of Andrew's Pitchfork. For a better observation of price action, you can study 4H chart and daily chart.
Considering all the details from the charts of forex technical analysis, we can detect all critical levels and trading targets for H1 and H4 timeframes:
Support - S1 : 1.5074 | S2 : 1.5036 | S3 : 1.4996 Resistance - R1 : 1.5153 | R2 : 1.5193 | R3 : 1.5231 Main Trend - Bullish Intraday Trend - Bullish Analyzing the 4H chart of forex technical analysis for the exchange rate GBPUSD, you will see that the price move upward of Andrew's Pitchfork (Blue lines). This Andrew's Pitchfork is still valid because the price remains below the trigger line (black line). For the better understanding of price action, we design another Andrew's Pitchfork (Crimson lines) and easily we observe that the price close between EMA(50) and EMA(200) and find resistant from the median line.
Considering all the details from the charts of forex technical analysis, we can detect all critical levels and trading targets for H1 and H4 timeframes:
Support - S1 : 185.354 | S2 : 184.670 | S3 : 184.227 Resistance - R1 : 186.481 | R2 : 186.924 | R3 : 187.608 Main Trend - Bullish Intraday Trend - Bullish Applying the rules of forex technical analysis and analyzing the 4H chart for the exchange rate GBPJPY easily observe that the price after a triple local bottom proceeds to an upward reaction. Price remain above EMA(50) and EMA(200) and also move within the upper channel of Andrew's Pitchfork.
Considering all the details from the charts of forex technical analysis, we can detect all critical levels and trading targets for H1 and H4 timeframes:
