Indicator types and their functions
How about colleagues; for all those who do forex trading, it is important to have the following clear concepts:
Trend indicator - the trend means the maintenance of a direction of the exchange rate in a certain time. Trends can move in three directions - up, down, and to the side. Trend indicators use various exchange rate data to create a resulting market direction (e.g. moving averages, trend lines, Parabolic SAR Price Oscillator).
Market strength indicator-
Market strength means the intensity of the market's opinion regarding price by evaluating the position of each member in the market. The indicator considers the volume and number of open positions. The signals they give either converge with or advance the market (e.g. Accumulation / Distribution Volume).
Volatility indicators - volatility is a term that denotes the size or dimension of the daily price fluctuation, regardless of its direction. A change in volatility usually indicates a price change (for example, Wstęgi Bollingera).
Cyclical indicators- the cycle means a repetitive pattern of market behavior dependent on recurring events such as the seasons of the year, elections, etc. Many markets are cyclical in nature. Cyclical indicators define a certain time-of-market scheme (for example, Elliott Wave).
Support and Resistance Indicators - Support and resistance signify price levels in situations when markets rise and fall repeatedly. This is related to the basic concept of demand and supply (for example, trend lines).
Momentum indicators- Momentum is the speed with which prices change in a given period. Momentum indicators show the strength or weakness of a trend over its duration. Momentum is strongest in the early phase of the trend and weakest at inflection points. A slight change in direction or price warns of your weakness; the appearance of extreme prices with weak momentum signals the end of the movement in the given direction. A sustained momentum without the price change signals a possible price change (for example, Stochastic Oscillator, MACD, RSI, Relative Strength Index).