What are Trend Indicators
Trend indicators in Forex reflect three tendencies in price movements:
Up moves, Down moves and Sideways price moves.
Trend indicators help defining the prevailing direction - trend - of the price moves by smoothening price data over certain period of time.
In simple words, Trend indicators allow to visualize Trends in the market.
Forex Trend Indicators
Average Directional Index (ADX)
Average True Range (ATR)
Exponential moving average (EMA)
Simple moving average (SMA)
Weighted moving average (WMA)
Moving Average Convergence Divergence (MACD)
Percentage Price Oscillator (PPO)
May I please ask about trend lines. Are they also belong to trend indicators. If yes, why you don't mention it here.
Trend lines are not exactly indicators, but rather studies. Trend lines are graphical analytical tools, applied by traders without any mathematical formula behind them.
However, you'll be right naming trend lines as indicators if we start speaking about automated trading systems, where even trend lines are drawn by a software.
At this point we won't be covering trend line trading, but you can always find good resources about this topic on the net. Here is the one to start with Forex trend lines.
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