UNDERSTANDING YOUR TECHNICAL INDICATORS

Before proceeding, let me touch on the Japanese Candlestick.
CANDLESTICK TECHNICAL ANALYSIS CHART: Japanese Candlestick is a short term timing technique that generates signals based on the relationship between open; high; low and close prices. it is known to generate more trading opportunities than any known trading plan.
There are several indicators for trading the forex market, with over 800 expert advisor indicators, but using too many or wrong indicators is counterproductive, as the information that those indicators provide are quite misleading, hence I will limit you to learn Forex Trading with the best strategies and systems in the forex market. Therefore I will concern us with very few indicators. In the course of my series of post, I will touch some other good expert advisor indicators with signals and buyable indicators to improve your trading.
MOVING AVERAGES: Moving Averages are the most popular and easy to use technical indicators. They make it easier to spot the trend, which is very helpful in volatile markets. They are like foundation blocks for many other technical indicators.
There are three distinctive Moving Averages, Moving Average Convergence MACD;Simple Moving Average SMA and Exponential Moving Average EMA.
Moving Average Convergence 'MACD' as it's commonly called is an oscillator that is capable of measuring the market momemtum and equally follow the trend. MACD is designed to generate the buy and sell signals. A buy signal occurs when the MACD line crosses from below to above the signal line, while a sell signal occurs when the MACD line crosses from above to below the signal line.
SIMPLE MOVING AVERAGE: This is formed by computing the average price of a market over a period of time, the only problem is that it is lagging, it does not signal a change in trend on time.
EXPONENTIAL MOVING AVERAGE: EMA reduces the lagging in the Simple Moving Average SMA by applying more weight to recent prices. The shorter the EMA's period, the more weight that will be applied to the recent price. The most important thing is to have it in mind that EMA puts more weight on recent prices and this will make it react quicker to price changes on time than the Simple Moving Average