Trading signals based on the trend technical indicators

Trading signals are the main source of information about the current state of the financial asset for the fix api trader. In order for each manager to get the most relevant information, one should develop his own strategy, in which he will describe the analysis model of the asset and the signal display. In view of this, there are many variations and ways of obtaining a trading signal.

One of the popular methods is trading signals from the trend indicators.

Trend indicators are mathematical interpretation of the existence of a formed trend in the market. In order to reveal the trend, it's enough to look at the indicator from this group. This is a sort of effective filter that helps the fix api trader in decision making. However, the trend indicators are also able to demonstrate signals, and not just point to the fact of movement.

The most common signals based on trend indicators are:

1. Crossing the values of the price quotations indicator: depending on the direction of the intersection, one can interpret the transition to a new phase of the market and a new trend.

2. Transferring the indicator values of another trend technical indicator (often, МА with a different period): unlike the first signal, this pattern confirms the already formed movement and is a signal to the opened police.

3. Direction of indicator movement: it often happens that the quotes have broken through the value of the indicator, but the second one continues its movements. This situation can be considered as a false breakdown. But if the indicator itself began to show a decline – then, this indicates a transition of the market into a new phase or a new trend.

https://forexrobotsreview.us/2018/01/23/t/