Trend indicator
Trend indicator - an indicator that indicates the general price trends in the market - up, down or sideways. Overall trend indicators
lagging indicator and not give exact entry points. Only time determined where and how you had to enter. They are a little late, determine the direction of the trend or shift. Price fluctuations are constantly hampered understand market direction, and indicators smooth these fluctuations with mathematical average. The result is a visually by looking at the indicator can understand where there is a tendency. Almost all indicators are based on the trend moving averages. Whether it is the Bollinger band, or exponential moving average indicator Parabolic.
The main of the trend indicators include:
-Moving Average
- Bollinger Bands
- Average Directional Movement Index
- Parabolic SAR
- Standard Deviation
Of course, to speak of a trend can only be a period of time. However, when used in combination, several temporary time frame, then the trend is not so clear and obvious. Because in a time interval can be a separate upward movement, and other market consolidation. Therefore the analysis must be conducted primarily in the context of multiple time periods and intervals. Should consider all of the terms - then the analysis will be complete for successful trading. As for the parameters, they are based on trading experience. But for starters, you can use the indicator parameters that are set by default in the trading platform or to use Fibonacci numbers.
