how do i understand indicators help

hi can anyone point to to a thread or web page that helps me understand all these indicators, please

like how to set them up and read them

just the simple ones how do you work out support and resistance.........................help guys

babypips.com

hello

you have already joined a good forum that is forexfactory.com and it is not only a nice forum though it is a very famous forum among forums world. if you really want to learn about forex market and many trading strategies ,technical knowledge.and if your are a reaaly new for forex you must visit on forexfactory.com ,babypips.com also.there are many indicators like MACD ,moving Averages, RSI, Mometum and pivot points etc. which can help you to find the major trend. these are some indicators,thses all tchnical indicators are very helpful to undersatand the market trend,
Momentum

Momentum, in technical analysis, refers to the overall rate of change in the price of an asset. Momentum is calculated simply by taking the slope of the trendline, which tracks the price levels of an asset over time. Traders often take momentum as a measure of the volume of a market. If prices are changing rapidly in a market (meaning that momentum is high), it's likely that a large number of traders are buying or selling the asset to push the price change in either direction. As such, extremely high or extremely low values for momentum are taken as signs that an asset is either overbought or oversold. If momentum reaches an extreme high, the asset is overbought; if momentum reaches an extreme low, the asset is oversold.
Buy signals are generated when momentum reaches an extreme low and then rapidly advances back upward across the zero line. Conversely, sell signals are generated when momentum reaches an extreme high and then rapidly falls below the zero line. Traders consider this a leading indicator of the price behavior of a given asset, and of the overall character of the market (either bullish or bearish.)

MACD

Moving Average Convergence/Divergence, an indicator used in technical analysis that was invented in the 1960s as a means of showing the differences between both the fast and slow EMAs (Exponential Moving Average) of closing prices, although since 1986 the graph has been produced as a histogram. The moving average as expressed by the MACD is essentially the average of a price over a certain set amount of time and the MACD enables easy demonstration of the relationship between two exponential examples of the moving average.
Generally, a fast EMA would be considered one within a time frame of twelve days, whereas a slow EMA would represent a twenty-six day period.
The formula: MACD=EMA[12] of price - EMA[26] of price with a signal line of EMA[9] then plotted over the top of this MACD result, allowing as a trigger point for interpretation of buy and sell signals.
Generally, it is considered that when the MACD falls below the signal line it can be regarded as bearish and may well indicate a time to sell, whereas when the MACD rises above the signal line indicating a bullish trend which may indicate an upward trend in price.

Bollinger Bands

Bollinger Bands are a simple technical analysis tool developed by John Bollinger, and are used to measure the volatility of a market as well as to indicate relative price levels.
Bollinger Bands consist of three lines. The center line is calculated by taking a simple moving average of the price of an asset. Traders most commonly use a 20 or 21-day moving average when calculating the center line of a Bollinger Band. Once the center line is calculated, the upper and lower bands are drawn two standard deviations above or below the moving average. The standard deviation of a market price varies depending on the difference between high and low prices for a given trading day, which means that when an asset becomes more volatile, the Bollinger Band expands, whereas when an asset becomes less volatile, the Bollinger Band contracts. This gives traders an idea of an asset's volatility.
If prices fall outside of two standard deviations of the median price (meaning that, on a candlestick chart, they fall outside of the Bollinger Band), those prices have reached an extremely high or extremely low level for the asset at that time. This can be a signal that a breakout from the trend is imminent, or a warning that an asset is overbought or oversold. When such indicators occur during a period of low volatility, this can be a very strong indicator of a coming reversal in trend, giving traders a signal to take the appropriate action with respect to that asset.



Moving Averages

A moving average is one of the fundamental tools of technical analysis. The two most popular types are the simple moving average and the exponential moving average. The simple moving average (SMA) is calculated by averaging market prices over a given period. For example, the twenty-day moving average would average price levels for the first twenty days of the market. On the following day, the SMA would include the twenty-first day of the market, omitting the first day. All SMA values are plotted on a chart, resulting in a significantly smoothed indicator of overall price behavior. The more periods are taken into account by the SMA, the less the SMA line will reflect minor fluctuations in market behavior, and the smoother the data will be.
The exponential moving average (EMA) is more complicated, but is calculated by taking the difference between the current price and the previous EMA. This value is multiplied by a set percentage (often dependent on the number of periods taken into account), and the resulting number is added to the previous EMA value. Unlike the SMA, the EMA doesn't eliminate any previous price levels from consideration when making its calculations, and as such is slightly more responsive at reflecting minor fluctuations in price behavior.
Moving averages are a simple way to see overall price behavior for an asset, and are also used as variables for a number of more complicated technical analysis charts and tools.



Pivot Points

Pivot points are a fundamental term used in technical analysis. A pivot point represents the point at which the overall trend in price changes. All of asset trading revolves around capitalizing on price trends as closely as possible to the beginning of the trend, in order to take full advantage of price movements in either direction either by selling a declining asset or buying an ascending asset so as to maximize profits and minimize losses. Since pivot points occur, by definition, at the start of a new price trend, the science of discovering pivot points is vital to effective technical analysis and effective trading in general. Many of the charts and tools used in technical analysis focus on discovering these pivot points. Trendline breaks, wedge and triangle patterns, and even more esoteric calculations and indicators (such as the Camarilla Equation or Keltner Channels) can be thought of as tools to discover effective, accurate pivot points in the price trend of an asset market.
Pivot points can be calculated for any time frame (Montly, Weekly, Daily, etc), although the most common time frame is for Daily charts.
Pivot Point= (High (previous) + Low (previous) + Close (previous))/3
Resistance 1 (R1) = (2 x Pivot Point) – Low (previous period)
Support 1 (S1) = (2 x Pivot Point) – High (previous period)
Resistance 2 (R2) = (Pivot Point – Support 1) + Resistance 1
Support 2 (S2) = Pivot Point – (Resistance 1 – Support 1)



Rate of Change

Rate of change (ROC) is an indicator used in technical analysis. The basic logic behind ROC is the same logic that underlies momentum: the change in price levels over time, or the slope of the trendline. However, ROC differs from momentum in the focus traders place on the time period used to calculate ROC, while the value of momentum depends much more on the trendline chosen by the technical analyst than on the time period used. ROC is calculated by taking the current closing price, dividing it by the closing price some x number of periods ago, and multiplying the difference by 100. The resulting value for ROC is expressed as a percentage. The typical value of x is ten, although different results can be obtained by using greater or lesser values.
Of special concern to foreign exchange traders is the lack of closing prices in the twenty-four hour forex market. Because of this, the closing price used in calculating ROC is commonly taken to be the closing price of the New York Stock Exchange, as once the NYSE closes, the volume of trading tends to drop off.
ROC can be used to generate buy and sell signals in much the same way as momentum. If ROC is rising, short-term buying pressure is indicated; if ROC is falling, short-term selling pressure is indicated.



Relative Strength Index

Relative Strength Index, sometimes shortened to RSI, is a price oscillator used in technical analysis to show changes in the strength of prices. The Relative Strength Index is considered a popular tool and is a relatively easy one to interpret. This price following oscillator is depicted as a basic graph and ranges from zero to one hundred.
By far one of the most popular methods of analyzing the Relative Strength Index is to look for an area on the graph that shows a divergence away from the current trend, in particular seeking an area of divergence in which the currency price seems to be aiming to create a new high, but where the Relative Strength Index has as yet failed to reach a level on par with it's previous price high.
This sort of divergence can often be considered a good indication of an impending price reversal to the current trend and when the RSI does reverse and falls in a down trend that extends below its most recent low, the RSI could then have been considered to have completed what is known as a 'failure swing'. Such a swing is generally considered to be a confirmation of an impending reversal in the price of the currency in question.






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