SMAs record the average closing prices over a specific time. Or the opposite occurs, which is known as divergence. It is when the distance between the EMAs gets closer, and the bar becomes smaller. ![]() It will fluctuate above and below the centreline or zero line as the moving averages show a convergence. The MACD indicator is shown on a Forex chart as two lines, the MACD and the signal line, and a histogram or bars. It measures the characteristics of a trend such as its direction, rate of change and magnitude. The MACD technical indicator is also an oscillator used to trade trends. Moving Average Convergence/Divergence (MACD) It keeps track of any recent price gains and losses and compares them to the current price. It is used in technical analysis to measure how strong or weak a currency pair is by comparing its upward movements to its downward over time. The RSI is a type of oscillator momentum indicator. They help traders identify the beginning and end of a trend with the help of other trend indicators. Momentum indicators or oscillators help you locate overbought and oversold conditions as they show the magnitude and velocity of a price movement. Some of these Forex trading indicators include: Momentum Indicators ![]() We researched several popular technical indicators that our customers use here at CAPEX. Using graphs and charts, individuals can notice where the market repeats itself and capitalise on choosing the correct entry and exit points to trade-in. ![]() Indicators are important in Forex trading because they help recognise familiar patterns that take place in the market.
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