Currency Trading Indicators

Currency traders use pivot points to determine support and/or resistance levels and can be used by traders to trade range-bound markets and also to identify breakouts traders. In this article we will give you a basic introduction to pivot points including - how there calculated, how they can be applied to FX trading and how to combine them, with other indicators in your currency trading strategy.

Developed by George C. Lane in the late 1950s, the Stochastic Oscillator is one of the most popular momentum indicators and is heavily used by currency traders. We have covered the calculation of the indicator in other articles and here, we will look at some simple set ups in terms of trading both trends and range bound markets.

Linear regression is a currency trading tool which is used to predict what might happen to the currency from past data. It is used to determine when prices are overextended either to the upside or downside and can give traders clues to fair value in an existing trend and alert them to a trend change – Lets look at Linear Regression in more detail and how to incorporate it in your currency trading strategy.

The Rate of Change (ROC) indicator is an easy to understand momentum oscillator that measures the percentage change in price from one period to the next and compares the ROC calculation of the current price with the price n periods ago.

The MACD, was developed by George Appel and is a trend-following momentum indicator that shows the relationship between two key moving averages of prices and is one of the most popular indicators used by both short and long term currency traders. Let's take a look at the MACD in more detail.