Forex foreign currency market is a very complex system and even if beginning to operate needs a minimum adaptation period there are technical issues that we have to consider while we continue on this way. Forex indicators are a useful tool and will help us understand the market reality. We will explain some definitions so that you get familiar to these new terms: Simple Moving Average (SMA): This shows the average price of a certain time that can be from 5 minutes to 24 hours. For example: Using the closing quotations of the foreign currency pair USD/JPY: Closing Day 1 = 124.00, Closing Day 2 = 126.00, Closing Day 3 = 124.00. ADX: This forex indicator, measures the trend strength and if there is or not a trend at the foreign currency market. It is from cero to over cero, and generally a reading over 25 can be considered in that way.
Volatility: This forex indicator measures the total volatility of a foreign currency for a certain period.
Exchange Rate:Oldest closing price divided per the newest one.