Technical indicators are calculations based on a security price and volume. They are used both to confirm the trend and the chart patterns' quality and to help to determine the buy and sell signals. They can be applied separately to form buy and sell signals, or used together in addition to chart patterns and price movement.
Technical analysis indicators can generate buy and sell signals through moving average crossovers and divergence. Crossovers express when price moves through the moving average or when two different moving averages cross each other. Divergence express when the price trend and the indicator trend move in opposite directions indicating weakness of the price trend direction.
Not all of the technical indicators are widely used in the Forex systems. The ones of utmost importance for developers and at least one of them is used to develop their trading strategy are the following:
- Moving Average
- Bollinger Bands
- Relative Strength Index (RSI)
- Stochastic Oscillator
- Moving Average Convergence/Divergence (MACD)
- ADX
- Momentum
Forex Pulse Detector v5.4
Forex Earth Robot v2.1
Inertia Trader v1010
As the fundamental market principles form the core of its trading function and it doesn't trade based on past historical data, there is no need for it to be regularly optimized.
The next step before starting a trade is to compare such an opportunity to price action for verification, this confirms an impending reversal of the trend direction.
Then the trade entry becomes so favorable and that trade is highly promising and the system puts an order.
Vortex Trader PRO uses a MySQL database to broadcast trading signals, it trades around the clock as was proved by its live performance statements with an average win of 11 pips and average loss of 21 pips.
It trades using baskets with a limited amount of trades achieving good profit on average 30+ pips, the positions are entered at the bar open with dynamic StopLoss and TakeProfit values.
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