Understanding Indicators and Volume Types in Trading the Forex Market

zebrablog.net - In accordance with the article above, so that we practice forex trading this time, we will discuss what load power markers are and the types of markers in forex trading.

Before going any further, we should first become friends with this marker. The majority of traders in the forex market think that the existence of this marker is foreign, especially if there are those who don't know much about how to use the Load Marker, what about you? Some experts think that this is because the load indicator located on the forex market does not really indicate the load on the market.

What is meant by the load capacity marker? Then prove what is this marker?

Cool guys, slowly. Let's go we find out first.

A load indicator is a marker that is used to indicate the amount of business involved in a trading activity at a certain stage. Load Alerts give you the ability to see reliable purchases, reliable marketing and no demand. The point is that based on this load indicator, a trader will continue to believe in making decisions in carrying out buy or sell instructions for a pair.

Indicators of loading in the forex market can also prove the attention of traders or investors to a particular currency counterpart. Strength in the forex market is not measured in terms of the number of contracts traded or the size of the contracts, because forex trading is not as concentrated as stock trading.

In this marker, loading capacity is recorded in the form of bars known as cafe loading capacity. This marker is usually attached to the bottom of the chart. The large capacity of the cafe indicates the large number of trades at that time, or it can also be said to show the great attention of participation. On the other hand, a short cafe reflects a small amount of activity or a lack of attention from market actors

As we mentioned above, the measurement of load power in the forex and stock markets is different, so the measured load on the trading program you use does not prove the trading capacity of all forex market contestants, but is limited only to those who trade at a particular agency. In this way, the size of an agent's capacity for a particular currency companion can be different from that of another agent.

From the description above, this trading strategy with load markers is very relevant in the stock market because businesses in stock trading always contain load information, but it is less relevant for the forex market. However, if you use the Loading Strategy, the following types of load markers include the following:

1.On Balance Loading Power( OBV)

Market business load capacity is based on the assumption that ideally load capacity confirms market trends. The market price escalation will be accompanied by an increase in On Balance Loading Power (OBV), on the other hand, a decrease in market price will be accompanied by a decrease in OBV. Of course, the market situation is not always perfect, so that if the OBV line creeps up but the market price is frozen, there is a high probability that the market price will explore OBV. Likewise, when the price rises but the OBV shows shrinkage or freezes, it may be that the market price is nearing the peak.

2. Money Flow Index

The Money Flow Index or MFI marker is an oscillator type marker whose use is close to the Relative Strength Index (RSI) marker. What distinguishes this marker with the usual oscillator type is that the MFI estimates the load capacity. By involving the aspect of the amount of loading capacity, this marker reflects the passion of market movements that are not only pegged on the amount of price alone.

As it is known, the load in the forex market is measured in terms of ticks, and when there is a change in the bid (and ask) price in the form of a trading program, the load will increase. This mixture of price and load size will provide a greater understanding of the divergence that occurs.

Mathematically, MFI can be formulated as follows:

Ideal price=(highest price+lowest price+closing price) or 3

Money Flow( MF)= load capacity x typical price

If the current ideal price is greater than before, then MF is positive, and if the current ideal price is less than before, then MF is minus.

The sum of all positive MFs in the measurement duration is known as MF(+) and the sum of all negative MFs is known as MF(-). Money Ratio is MF(+) or MF(-)

Money Flow Index( MFI)= 100-( 100 or( 1+ Money Ratio))

If you look closely, the recipe above is close to the RSI, only that the Money Ratio in the calculation above has included the aspect of the amount of loading capacity in it. Next, form the MFI marker for a 14 day period:

As the conclusion of our discussion, if you always carry out trading with a load indicator strategy, you should choose a large, highly liquid agent. It should be noted that the accuracy of loading on a live account is much more accurate than that of a demo account.

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