Quotex is known for providing free demo accounts as practice arenas for trading. However, along with free demo accounts, you can use the charting features with indicators and tools for drawing on charts, such as Japanese candlesticks.
This feature is specially made for the traders to help them mark winning strategies over the chart. Here, in this article, we’re going to discuss the best type of indicators for Quotex and oscillators that are presented as an additional part of the platform. Read below to know more.
Indicators and oscillators for Quotex:
The charting feature is an added feature to the Quotex platform as it allows traders to make decisions according to the constantly changing market and win trades for huge profits. In addition, there is no need to move and change windows to see the trend and analyze market fluctuation. Instead, you can do both of these things simultaneously on the platform.
Some of the notable indicators available on this unique trading platform are:
1. Bollinger bands
Bollinger bands are shaped as envelopes that are then plotted on the standard deviation level at a higher and lower level of the moving average. They are basically price envelopes that denote the upper and lower price levels. Since the bands’ distance is adjusted according to the standard deviation, it adapts to the swings of the volatility of the price.
Since they are used in pairs, the bands are used as signals for confirmation of other indicators. On the chart, when the bands are tightly close to each other when there is low vitality, a sharp price becomes highly probable to occur, which means that more money can be gained from this.
However, sometimes prices may also move from the bands as the trend starts to get strong. But if the prices move back simultaneously, then it shows that the strength is very low.
If you see the bands move because of an enormous amount, then that shows that a trend is ending and volatility is increasing. This is basically showing that the market will fluctuate a lot.
2. Moving average
It is an easy but technical tool used for analysis. Moving averages are calculated to identify the direction of market trends or stock direction to inquire about the resistance levels.
It is also known as a lagging indicator since it works based on the prices from the past.
Moving averages are customizable as the investor can select the time frame according to their choice. However, there is no right time when you are setting up your moving average.
You can also use this indicator at demo accounts and practice using it to understand it better.
A moving average is not just a statistical tool but also something that can see the changes in a data series over different time frames. As technical analysts, they see the prices and gauge the trends moving upwards or downwards that show a decline in the price movement.
For example, the EMA or the Exponential Moving Average is another type of moving average beneficial for traders who are going to trade for a short period of time. It is calculated by balancing the prices and giving equal importance to all the prices involved.
3. Keltner channel
Keltner channels are bands based on the market’s volatile nature. These bands are placed graphically on both sides of the asset price, and then the direction of the trend is determined.
These channels make use of ATR or the Average-True range, also known as volatility which can break in any direction with a barrier informing of a continuation.
Bollinger bands are better since they can filter out the unnecessary gibberish and work within a market range as opposed to the Keltner channel.
4. Awesome oscillator
A.O. is used to determine the market’s momentum and see the trends move to see how they will reverse. It compares the current rates of the market with the new ones.
It is excellent for technical analysis as it takes available oscillators and sets their calculations to balance them out. For example, an awesome oscillator calculates the 34-period difference and the five-period simple moving averages.
MACD stands for Moving Average Convergence Divergence, which is a momentum indicator that overlooks the trends and establishes a relationship between 2 moving averages of price.
MACD is basically an indicator that is interpreted in different ways by using methods such as crossovers, divergence, and market fluctuations. It triggers signals when they cross above or below the line. Moving average convergence divergence is helpful for investors as they can understand the movement of price and whether it’s weak or strong.
However, one limitation of divergence is that it may show a reverse signal that might not have happened in the actual market, giving a false result.
A stochastic oscillator is basically an indicator of momentum which compares the closing price to the range of prices at a specific time frame. If you adjust the time or take the moving average, then you can adjust the sensitivity of the oscillator in comparison to the market movements.
It came out in the 1950s and then slowly got famous as a momentum indicator in trading charts. They are responsible for forming oversold or overbought signals. However, they also depend on the past of the asset’s prices.
The indicator is used by only professional traders who know how to do technical analysis. It also helps to improve the accuracy in trading as well as looking out for the profitable exit and entry points.
The most important rule for a stochastic indicator is that prices may move upwards in an upward-moving market. In contrast, a downward market will see low prices or prices moving downwards. If there is no closing price that goes from low to high, then it means that the momentum is getting slow.
As a technical analysis tool, it takes two values on the extreme ends and forms high and low bands between them, and add an additional trend indicator to fluctuate between them. This is quite useful for traders as they can discover the oversold or overbought situation in the trends.
If the oscillator value is extreme on the upper side, then it means that the asset was overbought. Similarly, if the deal falls on the lower extreme, then technicians formulate that this asset was oversold.
According to analysts, oscillators are most beneficial when a trader wants to find a clear trend in the stock price of a company. These indicators would start to look similar to each other even though the indicator is used with another. But using both indicators together helps in knowing the entry and exit points easily.
This indicator also shows how experienced traders move in and out of stocks as compared to an average trader.
Conclusion: Indicators for Quotex
Every trader, new or professional, requires a trusted platform that can keep their private information and financial records safe from illegal activities.
Quotex is one of the most outstanding brokers at this time because of the fantastic features it provides. Not only do you have to give a minimum of $10 as an investment, but you can also trade using this money and actually gain profit from this tiny amount too.
By unlocking unique features such as demo accounts and copy strategy techniques, you have the most unique and excellent trading journey. Moreover, use the web or the app so that you can trade from anywhere in the world since it is available in 249 countries. With some of the best indicators and oscillators, maximize your profit gains and make the most from this trading experience. Open a Quotex account now and make profits by using these indicators and oscillators that can help you excel at trading.