The FX Bootcamp Guide to Strategic and Tactical Forex Trading
Chapter One
Lagging
Indicators
Most technical indicators are lagging, which means they are slow.
They tell you what just happened ... after the fact. However,
by combining historic price action with predictive price patterns,
we'll have enough evidence to form the basis of a trade plan.
In this chapter, you will learn how to use technical analysis to read
your charts. It is critically important to learn these concepts well. They are
key to understanding the market's behavior. The technical indicators we'll
discuss do not control the market, but they describe a story of how traders
are trading it.
MOVING AVERAGES
A moving average (MA) is an average of a predetermined number of prices
(such as closing price) calculated over a number of periods (such as
55 candles). The higher the number of candles in the average, the smoother
the line is.
A moving average makes it easier to visualize price action without statistical
noise. Instead of watching the up and down ... read full excerpt from: The FX Bootcamp Guide to Strategic and Tactical Forex Trading ebook