How to use Off-Chart Indicators - Part 5 | Vantage FX
- 11 years ago
Vantage FX (http://www.vantagefx.co.uk) look at off-chart indicators and how they can assist with your trading.
Off-Chart Indicators
In this video, we will look at off-chart indicators on a short time-frame; 10mins. This particular chart shows a fairly active currency pair in the 14-hour period.
The RSI become oversold at the first peak in price and correctly showed a fall in price. The RSI provides a small buy signal and once again at the top of the price move it indicates an oversold price.
The MACD falls as prices fall with the MACD showing a short position as the market remained volatile, but eventually settling low. However, divergence begins to occur as the MACD drops but prices remain steady. The MACD does indicate a short position at the top of the market, although somewhat unclear and turning into a long position. Overall it would have been beneficial to use the MACD, but this would have been with some trading difficulty.
The stochastic was very active in the current market condition, although by the end of the period it would have had the trader short. Momentum also encourages a fair amount of trading, some of it as ineffective trades. The Momentum was probably the weakest of the four off-chart indicators and probably better suited to a longer time-frame.
Off-Chart Indicators
In this video, we will look at off-chart indicators on a short time-frame; 10mins. This particular chart shows a fairly active currency pair in the 14-hour period.
The RSI become oversold at the first peak in price and correctly showed a fall in price. The RSI provides a small buy signal and once again at the top of the price move it indicates an oversold price.
The MACD falls as prices fall with the MACD showing a short position as the market remained volatile, but eventually settling low. However, divergence begins to occur as the MACD drops but prices remain steady. The MACD does indicate a short position at the top of the market, although somewhat unclear and turning into a long position. Overall it would have been beneficial to use the MACD, but this would have been with some trading difficulty.
The stochastic was very active in the current market condition, although by the end of the period it would have had the trader short. Momentum also encourages a fair amount of trading, some of it as ineffective trades. The Momentum was probably the weakest of the four off-chart indicators and probably better suited to a longer time-frame.