Several indicators are utilized in forex technical analysis. Those technical indicators imply the market trend, cycle or momentum, and traders would make trading decision with the technical indicators.
RSI indicates the underlying asset is overvalued or undervalued.
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SMA is the simple average in a specific period. SMA indicates trend of the underlying asset.
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EMA is the exponential average in a specific period. EMA also indicates trend of the underlying asset but prioritize newer data as against SMA.
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Bollinger Bands is the range where the underlying asset remains at specific probability.
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MACD is the difference between two moving average, which subtracts long termed EMA from short termed EMA.
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Stochastics indicates relative value of the underlying asset to the highest value and lowest value in a specific period. Stochastics provides view of the underlying asset overvalued or undervalued.
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