Real-Time Indicators and Charts

Olymp Trade offers an extensive educational suite to help new investors become acquainted with the markets, tools, and strategies necessary to become a successful trader.

Olymp Trade also provides an exclusive feature called Insights. This personalized news feed gives traders access to the latest updates that could influence their trading decisions.

Get to know Heikin Ashi here

The Heikin Ashi is a widely used chart type among traders seeking to identify trend reversals and trade opportunities. It resembles the traditional candlestick chart, but differs in several key ways.

Heikin Ashi charts are different from standard candlestick charts in that they use average values to represent price movements on a graph. This makes it simpler to spot trends and reversals without the choppiness caused by extreme price changes.

Heikin Ashi charts are generated with a formula that calculates the open, close, high and low values for each period in a given timeframe. It then smoothes these values out to give the chart an improved visual appearance.

Heikin Ashi can be more accurate for traders seeking to identify trends, but it may become unreliable if the market begins to move rapidly. This is because Heikin Ashi no longer provides traders with the same signals that regular candlesticks provide; in a fast-moving market like forex, Heikin Ashi may even become obsolete.

To utilize Heikin Ashi effectively, traders must learn how to interpret its patterns. Doing so will enable them to identify the ideal entry and exit points.

The Heikin Ashi candlestick pattern is an effective tool for finding trading opportunities across a variety of assets. It can be utilized to detect strong trend reversals and pinpoint price gaps.

Heikin Ashi candlestick patterns can be used to detect trend reversals on long-term timeframes, such as months or years. They're also useful for short-term trades and when combined with moving average indicators can filter out choppy periods that might not be supported by the trend.

Heikin Ashi candlestick patterns are commonly formed when a large candle has no lower shadow or upper shadow, signaling an intense bullish trend. This can be used to enter long positions and maximize profit potential.

Moving Average indicator

The Moving Average (MA) is a popular indicator traders use to detect price trends. It smoothes out short-term price fluctuations, eliminating noise and making it easier to see the bigger picture. MAs are calculated by averaging the closing prices of markets over an extended number of sessions and come in various timeframes such as 5, 10, 20, 50, and 100 days.

MAs are an integral part of many popular trading strategies, but they can also be used independently as indicators. When combined with other technical analysis tools, MAs help reveal momentum and trend strength.

A moving average indicator can provide buy or sell signals based on where prices intersect with the MA line. A rising MA indicates an upward trend, while a falling MA indicates one downward. To accurately spot these signals, set one moving average per time frame you trade on and watch for when those lines cross above or below this line.

MAs are also useful for their signal-generating properties, helping define support and resistance levels. They can help determine if the market is in an uptrend or downtrend, and when to enter or exit the market.

MAs come in several varieties, each with its own distinctive traits. The two most widely used are simple and exponential MAs. Traders select these indicators according to their preferences and strategy, selecting the period and style that best suits their requirements.

Exponential moving averages (EMAs) tend to be more responsive than their simple counterparts, since they prioritize data points closer to today's date. This makes them ideal for traders who need to act quickly in the market.

MAs can be effectively combined with other trend indicators like the RSI and MACD. These tools can detect retracement targets when MAs indicate overbought or oversold conditions. Combining these tools is especially advantageous when trading volatile markets.

Relative Strength Index

RSI (Real-Time Index) is an indicator traders use to decide whether a stock has become overbought or oversold. When the index reaches 70 or higher, it indicates an overbought condition; on the contrary, falling below 30 signals an oversold situation. Furthermore, it could signal potential trend reversal for stocks which had been rising recently.

An RSI is typically calculated over 14 periods, using the average percentage gain or loss for each price point over that time. Periods where prices drop are counted as zero, while increases are credited with a positive value.

The RSI can also be adjusted to better match the pricing of a security. If an RSI spikes above 70 and below 30 without accurately forecasting a change in price trend, traders may adjust the upper end of their RSI to 80 and/or lower end to 20 in order to receive more reliable trading signals.

In addition to the RSI, many technical indicators can assist traders in recognizing pricing trends and areas of support or resistance. These include moving average convergence divergence (MACD), stochastic oscillator, and momentum indicator.

MACD analyzes the relationship between two moving averages to give you an indication of how an asset might perform in the future. It can also give you a signal when to buy and sell, as well as signal when to reverse trends. MACD can also indicate when to sell or buy securities.

However, like other technical analysis tools, the MACD can be inaccurate and misleading. It's best to be aware of its limitations before using it for any significant analysis.

RSI (Real-Time Index) is an effective tool in deciding when to buy and sell securities, but it can also be complex at times. To make informed trading decisions, one must keep an overall perspective of the entire market.

RSI can be used to analyze any asset, but it's particularly valuable in commodities and popular instruments like bitcoin, gold and silver. Traders use it to decide if a security is overbought or oversold so they know when to enter into that trade. Furthermore, it indicates whether a trend may reverse soon - another important indicator when trading.

Moving Average convergence divergence

The Moving Average convergence divergence is an indicator that can help traders detect emerging trends. Stay ahead of the game and you'll likely profit more often.

The MACD indicator works by subtracting two exponential moving averages from each other to produce the main line, which then serves as the signal line. Traders use this difference between these two lines when making buy or sell decisions.

MACD, unlike RSI, is a momentum indicator that measures the strength of stock price movement. When MACD is high, it could indicate you should buy the asset; on the contrary, when it's low it could signal you to sell before further decline occurs.

Trend-following indicators are widely used technical analysis tools in the market. Traders and analysts use them to gauge the strength of a market's trend as well as potential shifts in its future direction.

When the MACD histogram is above zero line, it's a positive indication that the stock is on an uptrend. Conversely, when it's below zero line, it could be indicative of a downtrend.

MACD not only provides buy and sell signals, but it can also alert investors of potential changes in stock direction. Bearish divergence occurs when the MACD histogram crosses below zero but the price remains in an upward trend.

MACD can be a useful indicator, however it's not perfect and may not provide an exact signal in every circumstance. Traders should utilize MACD signals along with other indicators and chart patterns to formulate their individual trading strategy.

Another important point to keep in mind is that MACD should not be used with charts that are consolidated or moving sideways. This is because when the MACD's fast and slow lines are identical, it won't provide accurate information.

To get a more precise reading of the MACD, it's best to select a chart that displays trending prices rather than consolidated ones. A trending chart is one that displays an asset's price rising or falling continuously. Furthermore, using the MACD on a chart with multiple periods of pause allows it to display more data and provide better signals.