Teacher Forex School

Force index indicator was created by Alexander Elder. Force index indicator is an oscillator indicator that measures the power of bull whenever the market incline and the power of bear whenever the market decline. Force index indicator is based on three key components,that is; -Direction of price change -The extent of price change -And the trading volume Force index indicator is best approximated with the help of moving average Force index indicator is calculated using the following ; -By subtracting yesterday close by today's close and then multiplying the result by today's volume.This is as follows FORCE INDEX= V|*(CCURRENT-CPREVIOUS) where as; V is volume,C is closing price ,current is today's close and previous is yesterday's close. If closing price are higher today than yesterday then the force is positive while if closing price are lower today than yesterday then the force is negative. Force index indicator has an oscillator at point 0.0 in which w...

Demarker indicator was created by Thomas Demark. Demarker indicator is an oscillator trading indicator that is based on the comparison of the most recent maximum and minimum prices to the previous periods equivalent price to measure the demand of underlying asset.Demarker has two components ,that is; Demax which compares the current(bar) high to the previous (bar) high Demin which compares the current(bar) low to the previous (bar) low The value of the intervals (i) of the two components above is therefore calculated using the following formula; for Demax we have;  if High (i)>High(i-1) then we have the following; Demax(i) = High(i)- High(i-1) if otherwise then we have Demax(i)=0 for Demin we have; if low(i)<low(i-1) then we have the following formula; Demin(i)= low(i-1) - low(i) if otherwise then we have; Demin(i)=0 Demarker indicator has its intervals oscillation at between 0.3 to 0.7. When the demarker curve is between 0.3 to 0.7,then th...

Commodity channel index was developed by Donald Lambert. commodity channel index indicator measures the deviation of a commodity price from its average statistical price. When the value of the commodity channel index is high,that is an indication  that the price is also high while when the value of the commodity channel index is low that is an indication that the price is also low. commodity channel index is calculated using the following steps; -Finding the typical price by adding the high,the low and the close price of each bar and then divide the whole result by 3.This is as follows; TP=(HIGH+LOW+CLOSE)/3 -calculating the n-period SIMPLE MOVING AVERAGE of typical price.This is as follows; SMA(TP,N)=SUM(TP,N)/N -Subtraction SMA(TP,N) from typical prices of each of preceding n-periods.This is as follows; D= TP-SMA(TP,N) -Calculating the n-period SIMPLE MOVING AVERAGE of absolute D values.This is as follows; SMA(D,N)=SUM(D,N)/N -Multiplying the received SMA(D,N) by...

Relative Vigor Index( RVI) was developed by John Ehlers. Relative Vigor Index( RVI) is a technical indicator that measures the strength of a trend by comparing a security's closing price to its trading range and smoothing the result. this indicator is normally based on the tendency for prices to close higher than they open in uptrend and to close lower than they open in downtrend. the oscillator is at center 0.00 thus the RVI points are displayed above or below 0.00 oscillation. Relative Vigor Index( RVI) is calculated using the following formula;    RVI= (close-open)/(high-low) where ;     close is opening price      open is opening price      high is highest price       low is lowest price Relative Vigor Index( RVI) is composed of two crossover line; the red and the green line.when the market is bearish,the two lines will be seen moving downwards while when the bearish market reaches its max...

 Triple Exponential Average tool indicator  was developed by Jack Hutson as an oscillator for the overbought/oversold market condition.The tool can also be used as a momentum indicator. Therefore,Triple Exponential Average is an indicator that combines market trend with momentum. It constitute of the triple smoothed moving average and the period percentage change. The triple smoothed moving average covers the trend while the  period percentage change measures momentum. TRIX is calculated using the following; -15period exponential moving average (EMA) using closing price -15period exponential moving average(EMA) using the first step above -15 period EMA using the second step above -1period percentage change from the third step above The last formula is mostly considered as the TRIX  formula  and will mostly fluctuate from time to time. The triple exponential average indicator normally oscillates at around zero. Since this indicator oscillates at 0 it ...

Fractal indicator was developed by Bill Williams. Fractals are indicators on candle stick chart that identify reversal points in the market, that is highs and lows and normally mark them by arrows.The fractals indicator constitute of two pattern;that is; - The bullish fractal pattern -And the bearish fractal pattern. The bullish fractal pattern signals the trader that the market will move higher while the bearish fractal pattern signals the trader that the market will move lower. The bullish fractal pattern are marked by a down arrow while the bearish fractal pattern are marked by an up arrow. When the market will move high, Fractal indicator will come  up in 5 successive bar with the highest high bar in the middle and two lower highs on both sides while when the market will move low fractal indicator will come up with 5 successive bar with the lowest low bar in the middle and two higher low on both sides. This is indicated as in the figure below; The candle stick cha...

 Average true range Was developed by Welles Wilder. -Average True Range is a technical analysis indicator for measuring market volatility.It is based on a 14 periods  thus can be calculated on an intraday,daily,weekly or on monthly basis.Average True Range is used to develop a trading system for entry or exit signal as part of a trading strategy. ATR is considered a volatility because it measures the distance between the series of previous highs and lows for a specific periods.Average True Range is normally displayed with a decimal to indicate the number of pips between the period highs and lows.This is a very key point to traders because when volatility increases the value of the ATR charts will also increase while as volatility decreases,the value of the ATR chart will also decline.The True Range for the ATR can be considered as; -The difference between the current maximum and the minimum(High and Low); - The difference between the previous closing price and the current...

Was developed by Welles Wilder. The average directional index is a technical analysis indicator used by some traders to determine the strength of a trend. The trend can either be an up or a down trend shown by two accompanying indicators,that is ; -The Negative Directional indicator(-DI) -The positive Directional indicator(+DI) The ADX is calculated using the following formula; +DI = Smoothed + DM   *   100                   ATR WHILE; -DI = Smoothed - DM   *100                     ATR DX= +DI - - DI     /     +DI + - DI  THEREFORE; ADX = (prior ADX * 13) + current ADX                                         14 Where as; +DM = Current high - previous high -DM = Current low - previous low smo...

- Stochastic oscillator was created by Dr.George Lane. Stochastic oscillator is a momentum indicator that shows the location of the current closing price of security relative to the high/low range over a set periods. Stochastic oscillator is considered to be the same as RSI since both of them operate on the basis of oversold and overbought based on below or above certain range value.The only difference is that stochastic is further based on crossover. Since stochastic oscillator is based on crossover,it therefore has two crossover lines,the blue line(which is the stochastic oscillator) and the red dotted line which is the signal line. Just like in RSI,stochastic oscillator oscillates between 0 to 100. Stochastic oscillator has two component,that is; %K and %D. The stochastic oscillator is therefore calculated using the following formula; %K =    ( C-L14      )  X 100                H14-L14     ...

-Was developed by Welles wilder. - - The parabolic SAR canA parabolic SAR(Stop and Reversal) indicator is a graphically shown on the chart of an asset as a series of dots placed either above or below the candle sticks chart.When the series of dots are below the candle sticks chart,then that is an indication of an upward trend of the market thus a trader should enter a buy position while when they are placed above the candle sticks chart,then that is an indication of a downward trend of the market thus a trader should enter a buy position. also direct the trader on where to place the stop loss order. -Here is an indicator of parabolic SAR; The figure above shows a parabolic SAR.The indicator is able to show the trader where to enter and exit the market.The parabolic SAR are in dotted line.Some dotted line are being drawn below the candle sticks chart while others are being drawn above the candle sticks chart.The one drawn below the candle stick charts are an indication of an upwa...