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- DealBook® FX 2 Our powerful online currency trading tool that provides you with instant access to the forex market. With a host of features found only in DealBook® FX 2, it sets the bar for Forex Trading platforms. Available only from Global Forex Trading, DealBook® FX 2 gives you the tools you need to trade more effectively in any market condition. |
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Whether you are a fundamental trader or technical trader, a forex beginner or professional forex money manager, DealBook® FX 2.0 is the FX trading platform designed for forex traders by forex traders. Finally, forex traders have access to all of the resources once thought to be only available to the world's largest banks.
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Charting OUR
INDICATORS
The Average True Range measures the volatility of a given forex market. High values indicate that prices are changing a large amount during the day. Low values indicate that prices are staying relatively constant. Both trending and level prices can have high or low volatility. High volatility levels can sometimes be used to time trend reversals, such as forex market tops and bottoms. Low volatility levels can sometimes be used to time the beginning of new upward price trends following periods of consolidation. Bollinger
Bands Bollinger Bands use a moving average; therefore, the value at the beginning of a data series is not defined until there are enough values to fill the given period. Bollinger Bands are useful for determining whether current values of a data field are behaving normally or breaking out in a new direction. For example, when the closing price of a forex market increases above its upper Bollinger Band, it will typically increase in that direction.
Bollinger Bands can also be used for identifying when trend reversals may occur. A reversal is typically indicated by new highs or lows outside of the bands followed by another high/low inside the bands. Since the standard deviation can be used as a volatility indicator, the current width of the envelope can also be used for trend information. A narrow envelope indicates a lower amount of volatility, while a wide envelope indicates a higher amount. High volatility levels can sometimes be used to time trend reversals, such as market tops and bottoms and low volatility levels are sometimes used to time the beginning of new upward price trends following periods of consolidation. A useful forecasting
tool shows that moves that begin at one band tend to go all the way to
the other band.
The MACD is a specific instance of a Value Oscillator and is typically used on the closing price of a forex market to detect price trends. When the MACD increases, the prices are trending higher, and the prices are trending lower when the MACD is decreasing. The MACD is traditionally traded against a 9-day exponential average of its value, called its signal line. The MACD Signal Line function is provided to generate this value. When the MACD increases above its signal line, a buy signal is generated. When the MACD decreases below its signal line, a sell signal is generated. Accumulation
Swing With the Accumulation Swing Index attempting to show the real market, it closely resembles actual prices. This allows usage of classic support/resistance analysis on the Index. Typical analysis involves looking for breakouts, new highs and lows, and divergences. Aroon
When Aroon (up) and
Aroon (down) are moving together, there is no clear trend (the price is
moving sideways, or about to move sideways). When the Aroon (up) is below
50, it is an indication that the uptrend is losing its momentum, while
when the Aroon (down) is below 50; it is an indication that the downtrend
is losing its momentum. When the Aroon (up) or Aroon (down) are above
70, it indicate a strong trend in the same direction, while when the value
is below 30, it indicates a trend coming in an opposite direction. Chande
Momentum The Chande Momentum indicator is constructed using the sum over a given period of price changes on up days, sum (high-low) up, and the sum over the same period of prices on down days, sum (high-low), down. An exponential moving average of this line is then overlaid upon the oscillator as a signal line. The oscillator requires two parameters: the period over which the price ranges will be summed, and the period for the moving average. Chinkou
Span Commodity
Channel Index When watching the CCI in relation to the current price, it is useful to watch for new highs and lows. If the price of the market is reaching new highs and the CCI is not reaching new highs, a price correction may be coming. The CCI typically ranges in value-100 to +100. Values above this range indicate that the particular forex market may be becoming overbought; values below this range indicate it may be becoming oversold. As with other overbought/oversold indicators, this can often mean the price will correct to more typical levels. Commodity
Selection Index A high CSI rating indicates that the commodity has strong trending and volatility characteristics. The trending characteristics are brought out by the Directional Movement factor in the calculation, and the volatility characteristics are brought out by the Average True Range factor. DEMA Detrended
Price Oscillator Long-term cycles are made up of a series of short-term cycles. Analyzing these shorter term components of the long-term cycles can be helpful in identifying major turning points in the longer term cycle. The DPO helps you remove these longer-term cycles from prices. To calculate the DPO, create an n-period simple moving average (where "n" is the number of periods in the moving average). Then, subtract the moving average "(n / 2) + 1" days ago from the closing price. The result is the DPO. Directional
Movement - ADXR The ADXR differs from ADX in that it is less sensitive to short, quick reversals because it results in a 'smoother' calculation. It was developed to compensate for the variance of excessive tops and bottoms and is especially helpful when used in conjunction with trend-following strategies. Strategies that rely on volatility as an indication of movement may not take into account that movement does not necessarily indicate volatility. ADXR provides information pertaining to the strength of a trend, helping you to manage the risk of trading in volatile markets that fluctuate between trending and non-trending. Directional
Movement - DX In a trading system based on DMI, a buy signal is given when the DI+ value becomes greater than the DI -. For a sell signal, look for the point where DI becomes greater than DI+. In both cases, FX trading signals are only generated if the presence of a relatively strong trend is detected, for example, in the case that the value of ADX is higher than 25% Envelope Fast
Stochastics Stochastics can also help identify turning points when there are non-confirmations or divergences. For example, a new high in price without a new high in Stochastics may indicate a false breakout. Stochastics are also used to identify overbought and oversold conditions when the Stochastics reach extreme highs or lows. Additionally, FastK crossing above the smoother FastD can be a buy signal and vice versa. Forecast
Oscillator The oscillator is above zero when the forecast price is greater than the actual price. Conversely, it's less than zero if it's below. When the forecast price and the actual price are the same, the oscillator would plot as zero. Prices that are persistently below the forecast price suggest lower prices ahead. Actual prices that are persistently above the forecast price suggest higher prices ahead. Inertia Inertia is measured on a scale from 0 to 100. Negative Inertia is seen if the indicator is below 50. If the indicator is above 50, it is said to have positive Inertia. Signs of positive Inertia are indicative of a long-term upward trend. Signs of negative Inertia illustrate long-term downtrends. Intraday
Momentum The IMI is calculated like the RSI but uses the relationship between the intraday opening and closing prices to determine whether the day is up or down. When the close is above the open, it is an up day. If the close is below the open, it is a down day. White candlesticks signify an up day, black candlesticks used for down days. As with the RSI, overbought conditions (and lower prices ahead) are indicated when the index rises above 70. Values below 30 indicate a potential oversold situation and higher price ahead. Remember, as with all overbought/oversold indicators, you should first quantify the trendiness of the forex market before acting on any signals. Ichimoku When assigning a dimension of parameters, four time frames of different extent are used. The significances of the separate lines that make up this indicator are based on these intervals:
If the line, Chinkou Span, intersects the chart of the price bottom-up, it is a signal to buy. If it intersects top-down, it is a signal to sell. Kijun-sen is used as a parameter of movement in the forex market. If the price is higher than the Kijun-sen, the price will most likely rise. When the price intersects this line, changes in the trend are likely. An alternative version of usage for the Kijun-sen is the submission of signals. The buy signal is generated when the line Tenkan-sen intersects Kijun-sen bottom-up and a sell signal is generated when the Tenkan-sen intersects Kijun-sen top-down. Tenkan-sen is used as the indicator of a market trend. If this line grows or drops, the trend exists. When it goes horizontally, the market has come into the channel. Kairi The Keltner Channel is made up of two bands plotted around an Exponential Moving Average ("EMA") usually the 20-day EMA. Price breaking through the bands often produce buy and sell signals. As with all envelope
or band systems, the probability is that price will remain within the
envelope and that if the price breaks through the envelope, it can be
taken as a signal to buy or sell. In a rising forex market, the middle line, or 20-day EMA, should provide support. Conversely, in a falling forex market, it tends to provide resistance. As with all trend-following
systems, the Keltner Channel works well in up trends or down trends, but
does not work well in a sideways channel. It is not meant to catch tops
or bottoms. The calculation for
the Keltner Channel, based on ATR, is as follows: For the bottom, or minus, band, the ATR is calculated over 10 periods, doubled, then subtracted from a 20 period exponential moving average. When the prices close above the plus band, it is a signal of strength and rising prices. When the prices close below the minus band, a signal that prices will drop is indicated. Signals stay in effect until the prices close across the opposite band. Kijun
Sen Linear
Regression Slope The indicator helps to determine where a market's price might be in the near future using current and past price history. If prices are trending up, linear regression attempts to logically determine what the upward bias of the price may be relative to the current price. If prices are trending down, it will attempt to determine the downward bias of the price. Some analysts believe that when prices rise above or fall below the linear regression line; they are overextended and will begin to move back towards the line. Thus, the line is used to monitor when a price move may change direction. Mass
Index The Mass Index signals a possible price reversal when the Mass Index line crosses above the setup line and subsequently falls below the trigger line. This is known as a reversal bulge. The Mass Index does not identify the trend direction, but rather warns of possible reversals. Median
Price The median price provides a simplified view of the currency trading prices for the day. It can be used to smooth out some of the volatility of the closing price since it includes information for the entire trading day rather than specifically the end of the day. The median price can be used anywhere a closing price or other single price field would be used. Momentum Moving
Average Exponential The period is used to determine the relative weight which previous values should be given. The formula 2/ (period+1) is used to determine the percentage. For example, a period of 7 would cause 25% (2/ (7+1)) of the current value and 75% of the previous exponential moving average value to be used. NOTE: All previous values are used to make up a current exponential moving average, even values from before the period. The period is used as a rough estimate of how long new values will remain significant in calculation. The value at the beginning of a data series is considered to be zero. Therefore, you may want to ignore the values before the period has completed. Moving Averages are useful for smoothing raw, noisy data, such as daily prices. Price data can vary greatly from day-to-day, obscuring whether the price is going up or down over time. By looking at the moving average of the price, a more general picture of the underlying trends can be seen. Since moving averages can be used to see trends, they can also be used to see whether data is bucking the trend. Entry/exit systems often compare data to a moving average to determine whether it is supporting a trend or starting a new one. Moving
Average Modified Moving
Average Simple Because the Simple
Moving Average gives equal weight to each daily price, the longer the
time period studied, the greater the smoothing out of recent forex market
volatility. Long-term moving averages smooth out all the minor fluctuations
showing only longer-term trends. Shorter-term moving averages will show
shorter term trends but at the expense of the long term. Moving
Average Triangular A moving average is generally used for trend identification. Attention is given to the direction in which the average is moving and to the relative position of prices and the moving average. Rising moving average values (direction) and prices above the moving average (position) would indicate an uptrend. Declining moving average values and prices below the moving average would indicate a downtrend. A displaced moving average plots the moving average value of a previous bar or later bar on the current bar. Moving
Average Weighted The moving average at the beginning of a data series is not defined until there are enough values to fill the given period. NOTE: For more exaggerated weighting on the current values, you may want to use an exponential moving average. You could also average two or more weighted moving averages together. Moving Averages are useful for smoothing raw, noisy data, such as daily prices. Price data can vary greatly from day-to-day, obscuring whether the price is going up or down over time. By looking at the moving average of the price, a more general picture of the underlying trends can be seen. Since moving averages can be used to see trends, they can also be used to see whether data is bucking the trend. Entry/exit systems often compare data to a moving average to determine whether it is supporting a trend or starting a new one. Parabolic
SAR Once a Parabolic SAR is reached, the current position is exited and a new position in the opposite direction is taken. It is primarily used in trending markets and is based on always having a position in the market. The indicator may also be used to determine stop points and estimating when you would reverse a position and take a trade the opposite direction. The indicator derives its name from the fact that when charted, the pattern resembles a parabola or French curve. Percent
Change Percent
of Resistance Percent
R An oversold market is believed to occur when the Percent R line is less than the buy zone line. Conversely, an overbought market is believed to occur when the Percent R line is greater than the sell zone line. Price
Channel This indicator is NOT displaced by default. Changing the input Displace to a positive number displaces the plot to the left. Changing the input Displace to a negative number displaces the plot to the right. Price
Oscillator Calculating the difference between the two averages and plotting this as an oscillator makes extreme positive and negative values stand out as possible overbought and oversold conditions. Relative
Strength Index The RSI at the beginning of a data series is not defined until there are enough values to fill the given period. In addition, the value is defined as 100 when no downward changes occur during the given period. The RSI is typically used with a 9, 14, or 25 calendar day (7, 10, or 20 trading day) period against the closing price of a forex market or commodity. The more days that are included in the calculation, the less volatile the value. The Relative Momentum Index ("RMI") is an extension of the RSI which provides an additional smoothing parameter. The RSI usually leads the price by forming peaks and valleys before the price data, especially around the values of 30 and 70. In addition, when the RSI diverges from the price, the price will eventually correct to the direction of the index. Relative
Volatility The RVI measures the direction of volatility on a scale from zero to 100. Readings greater than 50 indicate that the volatility is more to the upside. Readings less than 50 indicate that the direction of volatility is to the downside. Rate
of Change The Rate of Change indicator at the beginning of a data series is not defined until there are enough values to fill the given period. Senkou
Span Slow
Stochastic Stochastics can also help identify turning points when there are non-confirmations or divergences. For example, a new high in price without a new high in Stochastics may indicate a false breakout. Stochastics are also used to identify overbought and oversold conditions when the Stochastics reach extreme highs or lows. Additionally, SlowK crossing above the smoother SlowD can be a buy signal and vice versa. Standard
Deviation Standard
Error Bands Although the Standard Error Bands are similar to Bollinger bands they are interpreted differently. Standard Error Bands show the direction of the current trend and the volatility around it. Bollinger bands show the volatility around the average of the plotted price. One method of using the Standard Error Bands is to look for the bands to tighten as price starts to move (upward or downward). When this occurs it is said that price tends to trend easily. The bands will often remain tight as long as the trend is strong. At the same time, the Linear Regression line will likely keep rising or falling depending on the direction of the trend. Once the Bands start to widen, it is indicative of the price slowing down. This may be followed by the Linear Regression line leveling off and possibly reversing, a signal that the trend may be nearing its end. STARC
Bands Swing
Index TEMA Tenkan
Sen Time
Series Forecast The Time Series Forecast indicator is similar to the Linear Regression indicator with the exception of two significant differences. The first difference is that TSF plots its line forward (to the right of the chart) by the number of bars specified by the BarsPlus input. The second difference is the default Length input value used for the TSF is much shorter because the plot line is extended forward. A larger Length input would create a grossly exaggerated plot and would not be as reliable as a shorter-term length when analyzing trends and price activity. TRIX Two main advantages of TRIX compared to other trend-following indicators are its excellent filtration of market noise as well as its tendency to be a leading rather than a lagging indicator. It filters out market noise using the triple exponential average calculation thus eliminating minor short term cycles that may otherwise signal a change in forex market direction. Its ability to lead a market stems from its measurement of the difference between each bar's smoothed versions of the price information. When interpreted as a leading indicator, TRIX is best used in conjunction with another forex market timing indicator to minimize the effect of false indications. Typical
Price Ultimate
Oscillator Many analysts believe divergences between the Ultimate Oscillator as well as a breakout in the trend of the indicator are significant signals. For example, a bullish divergence is said to occur if market prices reach a new low but the indicator does not follow. Conversely, a bearish divergence is said to occur if forex market prices reach a new high but the indicator does not follow. Volatility
Chaikin's There are two ways to interpret this measure of volatility. One method assumes that market tops are generally accompanied by increased volatility and that the latter stages of a market bottom are generally accompanied by decreased volatility. Another method assumes that an increase in the volatility indicator over a relatively short time period indicates that a bottom is near and that a decrease in volatility over a longer time period indicates an approaching top. Weighted
Close Williams
Accumulation/Distribution The Williams A/D indicator recommends buying when prices fall to a new low, yet the A/D indicator fails to reach a new low. Likewise, sell when the price makes a new high and the indicator fails to follow suit. Zig
Zag The Zig Zag indicator is used primarily to help you see changes by highlighting the most significant reversals. Understand that the last segment in a Zig Zag chart can change based on changes in the underlying plot, price being only one example. That is, a change in a currency's price can change a previous value of the indicator. Since the Zig Zag indicator adjusts its values based on subsequent changes, it has perfect hindsight into what prices have done.
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Serious Tools for Money Managers DealBook® FX is leading forex into the future with features that includes professional tools for money-managers, including multiple account management tools.
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