EVERYTHING ABOUT FOREX
AO measures market momentum and calculates the difference of a 34 period and 5 period simple moving Averages. The generated values are plotted as a histogram of red and green bars. A bar is green when its value is higher than the previous bar. A red bar indicates that a bar is lower than the previous bar.
There are 3 buy and 3 sell signals by AO. The indicator provides clear signals for entering the market. However for a more successful trading it is better to use additional methods of technical analysis such as fractals. The basic rules: Buy when AO is above zero and sell when AO is below zero. Place a pending Buy order above the candlestick which corresponds to the first green bar on the AO histogram.
Place a pending Sell order below the candlestick which corresponds to the first red bar on the AO histogram.
1) SIGNALS TO BUY
AO buy signal is generated when the histogram which is above the zero line changes its direction from falling to rising. In this case histogram “A” bar, of any color, should be higher than histogram “B” bar. Histogram “B” bar must be red. Histogram “C” bar must be green.
Once the signal has been generated, place a Buy Stop one tick above the high of the price bar. The most recent buy signal cancels all previous ones.
2) SIGNALS TO SELL
AO sell signal is the opposite of the AO buy signal. This signal is generated when the histogram that is below the zero line changes its direction from rising to falling. In this case, histogram “A” bar, of any colour, should be lower than histogram “B” bar. Histogram “B” bar must be green. Histogram “C” bar must be always red. Once the signal has been generated, place a Sell Stop one tick lower than the low of the price bar. The most recent sell signal cancels all previous ones.
We invite you into the investment world of InvestAZ. You can follow the steps below to be an online investor with us.
Fill the demo account form to open an account and trade risk free positions.
You can apply to open a real account entering the world of investment.
After depositing the initial investment you can easily start to trade.