For one to effectively navigate through the complex foreign exchange trading markets, one needs to learn how to manage risks associated with the markets. Greg Secker, an accomplished forex trader, also believes that one should have the knowledge of forex indicators.
Before indulging in a foreign exchange trade, one should be aware of the fundamentals indicators for profitability. These indicators include the Exponential Moving Average (EMA), economic calendars, the Simple Moving Average (SMA), Bollinger Bands, and the Stochastic Oscillator.
- The Exponential Moving Average (EMA)
EMAs are designed to analyze sudden price changes in foreign exchange trading. They are focused on short-term objectives. Traders use them to take advantage of impromptu market fluctuations.
- Economic Calendars
Economic calendars simply provide insights on financial events like mergers, acquisitions and policy changes. Companies usually announce these events ahead of time. Traders on the other hand make guesses on how these anticipated events will affect the market.
- The Simple Moving Average (SMA)
SMA is the average value of stock or currency over a specific period. There are long SMAs, 10 to 20 days, and long SMAs, 50 to 100 days. These SMAs help traders in determining the likely value of the currency in the future.
- Bollinger Bands
Bollinger Bands are essential in measuring volatility. In the financial world, volatility is derived from the standard deviations of logarithms and means. When used in forex trading, it is used to measure the highs and lows of currencies.
- The Stochastic Oscillator
This type of forex indicator was developed by a renowned technical analyst and securities trader known as Dr. George Lane. It is used to measure the momentum of currencies. This means that it can determine the future behavior of currencies when interpreted properly.
About Greg Secker
Greg Secker is an accomplished foreign exchange trader who got most of his trading experience from Thomas Cook Financial Services. During his tenure at the firm, he bagged a British Telecom Award for developing an online forex trading platform (Virtual Trading Desk).
Secker is credited for developing Learn To Trade, which educates people on the fundamental foreign exchange trading indicators. Secker earned his bachelor’s degree in agricultural and food sciences from a reputable higher learning institution known as the University of Nottingham.