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MACD measures the difference between two moving averages. A positive MACD indicates that the 12-day EMA is trading above the 26-day EMA. A negative MACD indicates that the 12-day EMA is trading below the 26-day EMA. If MACD is positive and rising, then the gap between the 12-day EMA and the 26-day EMA is widening. This indicates that the rate-of-change of the faster moving average is higher than the rate-of-change for the slower moving average. Positive momentum is increasing and this would be considered bullish. If MACD is negative and declining further, then the negative gap between the faster moving average (green) and the slower moving average (blue) is expanding. Downward momentum is accelerating and this would be considered bearish. MACD centerline crossovers occur when the faster moving average crosses the slower moving average.
Parabolic SAR - SAR stands for "stop and reverse." The Parabolic SAR is a time/price stop-loss system that can be used in conjunction with other technical oscillators and studies. The name of this system is derived from the parabolic shape of the dots that appear above and below the currency price. This indicator is commonly used to exit (sell) a long position when the price of a currency falls below the SAR dots and to exit (buy) a short position when the price rises above the SAR. Thus, the Parabolic SAR indicator can be thought of as a "trailing stop." When the price of a currency is above the SAR dotted line and the currency keeps going up, the dots keep rising just below the lows of the current uptrend. When the price falls through the trailing SAR dots, a sell signal is generated. Conversely, when a currency trader initiates a short position and the price of the currency keeps falling, the SAR dots will fall as well trailing the highs of the bars on the current downtrend. When the price of the currency rises above the SAR ceiling, a buy signal is generated to close the position. The SAR works best in trending markets.ADX(Average Directional Index) - ADX is an oscillator that fluctuates between 0 and 100. Even though the scale is from 0 to 100, readings above 60 are relatively rare. Low readings, below 20, indicate a weak trend and high readings, above 40, indicates a strong trend. The indicator does not grade the trend as bullish or bearish, but merely assesses the strength of the current trend. A reading above 40 can indicate a strong downtrend as well as a strong uptrend.
ADX can also be used to identify potential changes in a market from trending to non-trending. When ADX begins to strengthen from below 20 and/or moves above 20, it is a sign that the trading range is ending and a trend could be developing. When ADX begins to weaken from above 40 and/or moves below 40, it is a sign that the current trend is losing strength and a trading range could develop.
Accumulation/Distribution:
Accumulation/Distribution Technical Indicator is determined by the changes in price and volume. The volume acts as a weighting coefficient at the change of price — the higher the coefficient (the volume) is, the greater the contribution of the price change (for this period of time) will be in the value of the indicator.
In fact, this indicator is a variant of the more commonly used indicator On Balance Volume. They are both used to confirm price changes by means of measuring the respective volume of sales. When the Accumulation/Distribution indicator grows, it means accumulation (buying) of a particular security, as the overwhelming share of the sales volume is related to an upward trend of prices. When the indicator drops, it means distribution (selling) of the security, as most of sales take place during the downward price movement.
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