Trading indicators have long become reliable helpers to traders. This article presents seven popular indicators that help define the trend direction and find good entry signals.
Our strategy uses the Ichimoku and Awesome Oscillator indicators. Ichimoku Kinko Hyo is an excellent trend indicator that perfectly shows the current market trend.
The Ichimoku indicator has long been acknowledged as an efficient market instrument for defining the prevailing trend. It frees the trader from the need to detect such important things on the chart as the support and resistance levels as well as the areas that do not suit for trading.
Ichimoku Kinko Hyo is a technical analysis method devised in 1926 by Goichi Hosoda, better known under the pen-name Sanjin Ichimoku. In Japanese Ichimoku Kinko Hyo roughly means “instant representation” or “one glance cloud chart”. The indicator was designed in addition to candlestick charts on the commodity market, and the author used it successfully for rice trading. Later it was elaborated and introduced to the public in 1968, since then being one of the traditional instruments of Japanese traders.