I have come to the very end of the series and today I will end my discussion on this topic by sharing with you just two more trading indicator tools. Trading tools have been discussed in previous posts. Today concludes the discussion on trading technique tools with two tool discussions. I will appear with a new topic in the next post.
5. Market Profile
The market Profile is similar to the Volume Profile. It focuses on time instead of volume. It organizes price data based on the amount of time spent at each price level. With this indicator, the traders can get insights into market structure and dynamics. Market Profile shows a histogram of price distribution over a specified time period, showing where the market has spent the most time trading. Traders use Market Profiles to identify areas of value, potential breakout points, etc. It can help them find out the imbalance of the market as well.
Example:
By analyzing the Market Profile, traders can identify areas of price acceptance (where the market is comfortable trading) and areas of price rejection (where the market is reluctant to trade), which can help inform trading decisions.
6. Heikin-Ashi
Heikin-Ashi is a type of candlestick charting technique that filters out noise from traditional candlestick charts. This beautiful cool chart provides a smoother representation of price action. Heikin-Ashi candles are calculated using a modified formula that takes into account the open, high, low, and close prices of the previous candle. These smoothed candles help traders identify trends more clearly and reduce false signals.
Example:
By using Heikin-Ashi charts, traders can better visualize trends and reversals in price movements, helping them make more accurate trading decisions.
Finally, this is the end of the topic of market trend indicators. Hopefully, it was useful for the newbies and thank you very much for reading. Next, I will come up with another new topic.
~ Regards,
VEIGO (Community Mod)
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