![]() This makes it a lot easier for the trader to identify possible trend reversal points. It clears up the chart because it removes the moving average lines and plots arrows pointing the direction of the trend reversal instead. Traders would use these crossovers as a trend reversal entry signal.ĮMA Crossover Signal is a technical indicator which provides trend reversal entry signals based on the crossing over of two Exponential Moving Averages (EMA). These moving averages would crossover each other whenever the trend direction reverses. Traders would simply plot two moving averages on the price chart with one moving average moving slower compared to the other. One of the most popular ways traders identify a reversal is using moving averages. Breaches above 0.3 indicate that price is gaining bullish momentum, while drops below -0.3 indicates that price is gaining bearish momentum. It also has markers at level 0.3 and -0.3. On the other hand, negative bars indicate a bearish bias and plots red bars. Positive bars indicate a bullish bias and plots lime bars. The FX Fish indicator plots histogram bars that could oscillate to positive or negative. It also allows traders to identify the direction of the trend as well as the waves within a trend.īecause the FX Fish indicator converts price data which is typically not normally distributed into a Gaussian normal distribution, the FX Fish indicator helps traders see clearly the oscillations of price movements, which otherwise would seem nonsensical. This in turn allows traders to identify probable reversal points based on the price chart and the indicator. This allows the indicator to highlight points when price is on an extreme level compared to the recent price movements. It is computed by converting historical price movements into a Gaussian normal distribution. FX Fish IndicatorįX Fish is a trend following technical indicator which is a part of the oscillator family of indicators. It makes use of the 200 Exponential Moving Average (EMA) plus a couple of highly reliable technical indicators to help traders identify high probability trade setups. The question now is where could price potentially reverse.įX Fish 200 EMA Bounce Forex Trading Strategy is a strategy that provides setups where price can potentially bounce or reverse. ![]() Traders would have to accept the fact that they would have to make an educated guess regarding where price would reverse. Knowing that trading is a speculation game and a probabilities game. Traders who can look at a chart and see where price might potentially reverse and are willing to risk capital and allow statistics to play into their favor are the ones who can make money over the long run. Traders who have an idea how price behaves have a clue where price may “potentially” bounce. However, it is also a probabilities game. No one knows for sure where price is moving and where price might reverse. They could see where price is generally moving and where price might potentially bounce or reverse. Seasoned traders however see opportunities. Still, they would find it to be erratic and very unpredictable. ![]() Some people who have an idea what price charts are would understand that it is price moving up and down. Often, when a person sees a price chart for the first time, they would often see a meaningless movement of bars going up and down. Non-traders look at a chart differently compared to seasoned traders.
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