Cash Machine

By Ani Stepanyan

The name oscillator derives from the Latin word oscillo which means “I swing”. In technical analysis oscillator is the mathematical expression of the speed of price movements over time. By their form oscillators are advanced indicators.

The Average True Range (ATR) indicator was introduced by Welles Wilder as a tool to measure the market volatility and volatility alone leaving aside attempts to indicate the direction. Unlike the True Range, the ATR also includes volatility of gaps and limit moves.

The Bollinger Bands indicator displays the current market volatility changes, confirms the direction, warns of a possible continuation or break-out of the trend, periods of consolidation, increasing volatility for break-outs as well as pinpoints local highs and lows.

The Commodity Channel Index is an indicator by Donald Lambert. Despite the original purpose to identify new trends, it’s nowadays widely used to measure the current price levels in relation to the average one.

The DeMarker indicator as a tool to identify emerging buying and selling opportunities. It demonstrates the price depletion phases which usually correspond with the price highs and bottoms.

The Envelopes indicator reflects the price overbought and oversold conditions helping to identify the entry or exit points as well as possible trend break-downs.

The Force Index indicator measures the power behind every price move based on their three essential elements, e.g., direction, extent and volume. The oscillator fluctuates around the zero, i.e., a point of a relative balance between power shifts.

The concept of Ichimoku Kinko Hyo was to provide an immediate vision of trend sentiment, momentum and strength at a glance perceiving all the Ichimoku’s five components and a price in terms of interactions among them of a cyclical type related to that of human group dynamics.

The Moving-Average Convergence/Divergence Oscillator, MACD, is an indicator which is designed to reveal changes in the direction and strength of the trend by combining signals from three time series of moving average curves.

Momentum is an indicator that shows trend direction and measures how quickly the price is changing by comparing current and past prices.

The Relative Vigor Index, developed by John Ehlers, is a technical indicator designed to determine price trend direction.

The Relative Strength Index is an indicator developed by Welles Wilder to assess the strength or the weakness of the current price movements and to measure the velocity of price changes by comparing price increases with its losses over a certain period.

Stochastic is an indicator introduced by George Lane to identify price trend direction and possible reversal points by determining the place of the current close price in the most recent price range, as in a sustainable uptrend close prices tend to the higher end of the range and to the lower end in a downtrend.

The Williams Percent Range (%R) is a technical indicator developed by Larry Williams to identify whether an asset is overbought or oversold and therefore to determine possible turning points. Unlike the Stochastic oscillator Williams Percent Range is a single line fluctuating on a reverse scale.

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