Forex Swing Profit

Parabolic SAR Forex Indicator

Parabolic SAR is a technical indicator developed by an analyst named Welles Wilder (Creator of the relative strength index). SAR is shown as a series of dots placed / located above or below the price.
From a position above / below is used by traders to generate transaction signals depending on where the position of those points.

Dot placed under a price considered a bullish signal.
Conversely, points located above illustrates the price that bears are in control and that the momentum is likely to remain downward.

As we know that many kinds of indicators in forex trading, which draw from the parabolic SAR is located on the ease of use (easily seen) from the above brief description by no means a simple look .. Read more »

Average Directional Index

The average directional index, or ADX for short, is another example of an oscillator. It fluctuates from 0 to 100, with readings below 20 indicating a weak trend and readings above 50 signaling a strong trend.

Unlike the stochastic, ADX doesn’t determine whether the trend is bullish or bearish. Rather, it merely measures the strength of the current trend. Because of that, ADX is typically used to identify whether the market is ranging or starting a new trend.

Average Directional Index Trading Setups

Take a look at these neat charts we’ve pulled up:

In this first example, ADX lingered below 20 from late September until early December. As you can see from the chart, EUR/CHF was stuck inside a range during that time. Beginning in January though, ADX started to climb above 50, signaling that a strong trend could be waiting in the wings. Read more »