Day traders have to be focused on price movements within a short frame of time, and that calls for making the right decisions pertaining to entry and exit from the market. You have very little time to reconcile your thoughts, and that calls for using advanced software. Before you use software to chart your thoughts, you need to be aware of the basics of advanced forex trading concepts.Ever heard of the word ” leading indicators”?
Most likely you may not have heard of it. As the name suggests, lead indicators are designed to indicate lead price movements. Most of the lead indicators that we know today are based on price movements over a previous period. For example stochastic oscillator is one such lead indicator. Agreed this is quite a bombastic word. But it is a word that you will run into in many a technical analysis. Supposing you hear of a 20-day stochastic oscillator what does it mean? It simply means that here is a stochastic indicator that would use the past twenty days of price action for calculation purposes. This is not the time to learn what a stochastic indicator is, but it would suffice for the moment if you are aware of this word. All that you need to know now is that it is a leading indicator.
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