Resources Center

Learn, practice and improve your online trading strategy

Forex Demo Account

Open a free demo account and manage a virtual portfolio under real market conditions. Start trading on any RTFX trading platform under the same conditions as a real account.

Forex Tutorial

 

Technical Indicators

Technical Indicators are a tool used by traders to help predict future price levels or direction of an underlying security by analyzing past patterns. A technical indicator is a sequence of information derived by applying a formula to the price data of the security. Price data is may include information such as the open, close, high or low of a security over a given time. Depending on the type of indicator, some may use the closing and/or the open price, whereas others may incorporate volume and volatility into their formulas. A formula calculates given information including price and data points are produced.

A technical indicator, more commonly referred to as “technicals” offer a different perspective from fundamental analysis that is they do not take into account news, earnings, and economic figures etc… They are used mostly by active traders to analyze relatively short term movements.

Indicators may vary between each other. Certain indicators, such as moving averages, are derived from simple formulas and the technicalities are relatively simple to comprehend. Whereas others, such as MACD or RSI, have more complex equations and thus need more study to fully apprehend and appreciate. Despite the complexity of the formula, technicals in their own way can offer a unique perspective on the strength and direction of the underlying price action.

Email Us

Our team is at your disposal to answer your questions, just fill the following form and we'll get back to you shortly.

+44 208 819 96 63
Email Us
Online Chat
Free Callback