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The Complete Guide Into The World of Indicators

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
Good time of the day, traders! As you can tell from a pretty self-explanatory name, this is our last and full review on all of the most useful indicators available for public use. The first two parts are linked to this post and now we’re going to take a look at our last 3 indicators.

The Williams Percent Range, commonly known as the Williams Percent R, is a momentum indicator that displays where the most recent closing price is in relation to the highest and lowest prices during a specified time period. William’s percent R is an oscillator that notifies you whether a currency pair is "overbought" or "oversold." Consider it a more sensitive and less popular form of Stochastic . It has RSI-like characteristics as a momentum indicator since it evaluates the strength of a current trend. Traders, on the other hand, utilize percent R's extreme values (-20 and -80) for clues, whereas RSI employs its mid-point number (50) to gauge trend strength.

It might be useful to judge the strength of a trend, independent of its direction, while trading. When it comes to determining the strength of a trend, the Average Directional Index is a widely used technical indicator. Another type of oscillator is the Average Directional Index , or ADX for short. The ADX is a trend indicator that ranges from 0 to 100, with values below 20 suggesting a weak trend and readings above 50 indicating a strong trend. The ADX formula is complex, but in a word, the greater the ADX , the stronger the trend. When the ADX is low, it signals that the price is likely to move laterally or trade in a range. When the ADX rises above 50, it means that the price is gaining momentum in one direction. In contrast to Stochastic , ADX does not indicate whether a trend is bullish or bearish . Rather, it only assesses the present trend's strength. As a result, ADX is frequently used to determine if the market is range or beginning a new trend. The ADX is a "non-directional" indicator. It is based on comparing the highs and lows of bars, rather than the bar's closure. Regardless of whether the trend is up or down, the greater the reading, the stronger the trend.

Ichimoku Kinko Hyo (IKH) is a price momentum indicator that forecasts future levels of support and resistance . Ichimoku may be used to any tradeable asset in any time frame. (Originally, it was used to exchange rice) In both rising and declining markets, Ichimoku can be utilised. Do not use Ichimoku where is not an obvious trend and market is choppy. Pro-tip: Ichimoku works the best for JPY pairs.

Honestly, while writing about Ichimoku (which I used every day couple years ago), I realized that it’s a very large topic by itself. So, leave a comment, if you guys want more details on how to set it up and use it. As per usual, have a great trading week, fam!

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