ForexForex · Lesson 08
Indicators & Confluence
Moving averages, RSI, MACD, ATR, Bollinger Bands and Fibonacci.
Video tutorialTrack course · Trading Education
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Transcript & captions
6/6
| Indicator | Type | Common use |
|---|---|---|
| EMA 20/50/200 | Trend | Dynamic support, trend filter |
| RSI (14) | Momentum | Overbought/oversold, divergence |
| MACD | Momentum | Crossovers, momentum shifts |
| ATR (14) | Volatility | Stop distance and target sizing |
| Bollinger Bands | Volatility | Squeeze then expansion |
| Fibonacci 38.2/50/61.8 | Retracement | Pullback entry zones |
Indicators are derived from price — they lag it. Their job is to confirm a decision you already made from structure, not to generate signals on their own.
Simple moving averagejs
function sma(values, period) {
const out = [];
for (let i = period - 1; i < values.length; i++) {
const slice = values.slice(i - period + 1, i + 1);
out.push(slice.reduce((a, b) => a + b, 0) / period);
}
return out;
}
console.log(sma([1, 2, 3, 4, 5, 6], 3));Confluence means several independent reasons agree: higher-timeframe trend + a key level + a candle signal. Three weak reasons beat one indicator crossover.
Knowledge check
0/2 answeredWhat does ATR measure?
Indicators are best used to...