Options trading systems are strategic methods developed to make online trading easy and tackling the problems involved in option trading. These are the tools involving set of rules that option traders are to follow and manage their trading activities in more convenient and confident manner.While installing an options trading system, several aspects have to be kept in mind. … [Read more...]
Average True Range, ATR
Average True Range or ATR is one popular volatility indicator which can be used by traders of all kinds. It was introduced by J. Welles Wilder in 1978 in his book “New Concepts in Technical Trading Systems”. Although the indicator was developed for commodity futures market, it can be used to trade all financial instruments including stocks and forex currencies.ATR. It is a … [Read more...]
TRIX: Momentum indicator
Introduction TRIX is a momentum indicator that displays the percent rate-of-change of a triple exponentially smoothed moving average of a security's closing price. It was developed in the early 1980's by Jack Hutson, an editor for Technical Analysis of Stocks and Commodities magazine. Oscillating around a zero line, TRIX is designed to filter out stock movements that are … [Read more...]
Forex Technical Indicators
Momentum Oscillators Momentum oscillators react very quickly to short-term changes in price, flipping back and forth between overbought and oversold levels. Oscillators are useful in both ranging and trending currency markets. The most common momentum oscillators include Relative Strength Index (RSI), Commodity Channel Index (CCI) and the Stochastic Oscillator. Let's take … [Read more...]
Financial instruments for Forex
Spot A spot transaction is a two-day delivery transaction , as opposed to the futures contracts, which are usually three months. This trade represents a “direct exchange” between two currencies, has the shortest time frame, involves cash rather than a contract; and interest is not included in the agreed-upon transaction. The data for this study come from the spot market. Spot … [Read more...]