The purpose of the overwhelming majority of technical analysis indicators is to assist in the timely recognition of trend reversals. This moment represents the optimal point for opening trades on an increase or decrease. Bill Williams’ Alligator is one of the leading trend indicators, and it consists of 3 Moving Average lines and fractals as an additional function. In this article we will conduct a detailed review of this tool, as well as consider simple trading strategies based on it.
Indicators
The Ichimoku Cloud
One of the most interesting means of price chart analysis on the options market today is an automatic indicator named Ichimoku Kinko Hyo (it is more often simply called the “Ichimoku”). It was created to improve the quality of asset price forecasting on candlestick charts, since on “clean” quotes, it is definitely not always possible to accurately determine the optimal entry points for trading.
The Momentum Oscillator indicator
The Momentum Oscillator is a type of technical analysis tool that measures the amount of change in the value of a certain asset over a period of time. Its main feature is that this tool is capable of identifying emerging trends in price movement and establishing optimal entry points on trend movement, moreover doing that ahead of the main chart and leveling out the possibility of signal delay.
The Fractals indicator – a description and usage
Among the great many currently known technical indicators, traders generally only use the most well-known of them, not paying attention to the other equally effective automatic analysis tools. To remedy this situation, we’ve decided to introduce you to a very mysterious indicator – Fractal Chaos Bands, or, to put it simply, the fractals indicator, which is no more inferior when it comes to efficiency than the more famous automatic indicators.
