 Welcome traders to today's session in the ongoing online education series hosted by me, Patrick Munley. Today, we're going to be talking about technical indicators. Before we get going, I'd just like to do a quick audio test. If you can hear me loud and clear and you can see a tick mill, we want traders to succeed screen. Please type a Y in the chat box. Good stuff. Okay. So without further ado, let's get things underway. Before we get started, as always, we want to just take a few seconds here to read through the risk disclaimer. As we know, trading foreign exchange is a risky business, but you're helping to improve your chances of profitability by participating in the sessions and educating yourself further. So now that we've covered the risks, I'll just briefly introduce myself. My name is Patrick Munley, as I say. After graduating and successfully co-founding and exiting a consulting start-up, I moved on to explore my passion for markets. I researched, developed, tested, and implemented a robust trading plan underpinned by a rigorous risk management strategy. This plan has delivered profitable annual returns since 2008. Since 2010, I've personally mentored over 100 private traders of all experience levels from complete novices to former CME floor traders. In developing trading strategies to reap consistent returns from the markets. I've also consulted to numerous brokers and trading education brands contributing written webinar and live presentation contents on a range of topics from market analysis to trading strategy developments and execution. I'm currently the in-house market expert for Tick Mill and I'm also the head of trading and trader education at a leading trading education firm called FX Career Swap. I also manage a proprietary trading team for a firm called Little Fish FX. Alongside those responsibilities, I also manage my own capital and investor capital and have been doing so since 2013, again delivering annual profitable returns. So that gives you a flavor of where I'm coming from. So let's move things on now to talk about the key components of technical indicators. What I'd like to do is cover the content that I've prepared for today and then at the end of the session, I'll open the floor up to questions and I'll answer as many of those as I can in the time we've got. So without further ado, technical indicators. Technical analysts rely on an array of other technical tools such as indicators and oscillators in addition to the charts to help their analysis. Some of the more commonly used indicators and oscillators include support and resistant levels, moving averages, Bollinger bands, MACD and stochastic oscillators. In today's session, I'm going to help you become more familiar with the study of technical analysis through the use of these indicators by providing you with a solid background to the key features. This session will help you develop an understanding of the central aspects that are essential to understanding the more complex side of the trading game. So what are technical indicators? A real life example would be a driver using his indicators to let other drivers know that he intends to park his car in a nearby parking spot. In essence, this would be a leading indicator. The driver is letting everyone around him know the general direction in which the car will move. Leading indicators do the exact same thing in trading. When looking at a currency in the forex market, a leading indicator will indicate the general direction of the exchange rate. To be precise, their main function in this case is to provide buy and sell signals. Looking back at the example of the driver, let's say an angry driver cuts the driver off and takes his parking spot. Now the driver has to drive around the car park looking for another spot while obviously cursing under his breath. Just as the driver's indicator did not provide a guarantee that he could make the intended action, leading indicators in the forex market did not provide a guarantee of what the price will do in the future. It is the collective participation of traders and institutions that determines the price of security at a specific point in time. So now we understand there are two types of technical indicators. The first are leading indicators, which we've just briefly discussed. The second are lagging indicators, which provide information about price movements that have already occurred. They are more useful as a confirmation tool to verify the conditions of the market. Excuse me. In general, there are many categories that can describe the properties of numerous indicators out there, but the two described here encompass a lot of them. A quick note on leading versus lagging indicators. There's a lot online about leading versus lagging indicators, but the reality is that almost all indicators available on your trading platforms, including even candlestick charts are actually lagging indicators. The reason for this is that they are all based on price movements that have actually already occurred. Leading indicators typically result from correlated assets giving potential clues to price action. For example, the correlation between the Australian dollar and gold, which will be discussed in more detail in later sessions. We have order flowed information and we also have economic indicators. Other categories include volume-based and price-based indicators. Volume-based indicators use the trading volume of a security to provide information about market activity related to that security. Although again, they are typically lagging in that they use volume that has actually already traded. Similarly, price-based indicators use the price action of a security to give the trader buy and sell signals or confirmations. Now that technical indicators and their purpose have been introduced. Let's look at some examples. And what we're going to start with here is the indicator that most traders become familiar with when they start out and that's the moving average. A moving average indicator takes the period of a specified number of periods up to and including the most current period. For example, assume that you're looking at the daily charts and that you retrieve today's closing price as well as the closing prices for the previous 19 days. If you average these numbers by taking the arithmetic average, you will obtain the value of today's moving average. This is an example of a simple moving average where the weights of each price are equally distributed so that each price level has an equal impact on the value of the moving average. Another popular example of a moving average is the exponential moving average or the EMA. This average weights the recent price levels more heavily than older price levels. Both of these averages will be discussed in more detail now. The chart you can see on the screen depicts the GVPJPY with the exponential moving average in blue and the simple moving average in yellow. As you can see, the EMA moves closer with the current price trend than the SMA due to its heavier weight on recent prices. Both indicators are lagging since they follow the price action and therefore should be used as confirmation signals. Popular SMA is the 200 day SMA. Considered by many traders to be the long-term trend of an asset. In this session, both indicators will be looked at closely because many traders are unaware of their underlying power. And if you can start using them correctly, then you can improve your performance. So again, the simple moving average. This is simply the average closing price of an instrument, be it a stock bond commodity or in our case, foreign exchange pair. Over an X period look back. That can be minutes, hours, days or months. Now, as you'll note out now, it's easy to calculate an average. If you have six different numbers and you want to find the average of those numbers, you add them all together and divide by six. That's exactly how the moving averages work. You add up the closing prices of the X number of periods, then divide the total number by X. Then we have the exponential moving average or the EMA, an exponential moving average, works in the same way, but uses a weighting. So again, as we said, the most recent time periods hold most significance. The reason moving averages are so powerful is that they provide an insight into the market price movement and market sentiment and highlight strong trends in the market. Importantly, they work as key support resistance levels. We're going to look at some examples to illustrate this. You can see now on your screen, a chart of the 50-day SMA that's been plotted in green and the 50-day EMA in red. Notice how the EMA turns up and down quicker than the SMA, reacting more to recent price trends. For instance, choppy trading in the dip that you can see during the September and October results in the EMA actually dipping more than the SMA. What is important here is that even though the same period is being used for the moving averages, the 50-day, they actually react quite differently. Therefore, you need to be somewhat careful with how you plot them. Remember, the EMA reacts more to the recent moves in price while the SMA acts to smooth out price over a longer period. This shows the difference between the two types of moving averages and it's key to understand how they react. In large swings, the EMA is likely to move more than the SMA. Why is this important to know? Well, large trending moves, SMAs will provide more of a smoothing effect. Thus, any minor retracement will be smoothed out for the trend. When looking for reversals or changes in direction, the EMA will react faster to these changes, allowing you to get into a trade at a better price. So we're going to look at the same chart now, Euro-USDA gain, but with the 50-day EMA in red and the 200-day SMA in green, notice how these moving averages react to price. What's interesting about this is how these moving averages appear to be acting at support levels. In case you're new to this, support is an area where historically, buyers have come into the market to support it. Note the circles have been added to the chart. See how, at these points, the price has come down to the moving average and then moved higher as the buyers have come in. Now, looking at the chart again, but a few months before, what's interesting about these moving averages is they form key psychological levels in the market, which can act as dynamic support and resistance. Again, resistance is an area where historically, the price has had difficulty getting through. You can see that on the bottom of the three circles, each time the price has reached the red moving average, it's bounced off it and headed lower as the sellers have stepped in. Let's take a look at another example. This is an Australian dollar trading against the Canadian dollar or the Aussie cow, as we call it. Again, we're using the daily timeframe and each candlestick represents one day's price action. You can see that the actual price of the currency pair shown by the candlesticks has been moving up and down on daily basis, as you would expect from the market. That's what markets tend to do. But look at the blue line plotted across the chart. The moving average, this shows the price action smoothed out over time by taking the average price of each day over the past 200 days. And once again, the blue circles are shown as areas of support and resistance. Price does not move in a smooth, uniform manner. Instead, it tends to move up and down in zigzag pattern. When price has been moving up, like in the Aussie chart on the screen or down in the Euro-USD chart before, sooner or later, these trends, these tend to be what we call corrections. The easiest way to explain a correction is a small bounce in the opposite direction to the current trend. If the overall trend is established and powerful, these corrections can be great opportunities to take advantage of getting on the trend. So what we're thinking about here is using the moving averages to jump in on the trend. One very simple strategy that is surprisingly powerful is to look for these small corrections to touch what's referred to as the support resistance zones. These are areas where there are more orders and momentum in the direction of the trend. In other words, if price is moving down and there's a small correction to the upside, then orders will push price back in the direction of the trend. Price is moving up but corrects to the downside, buy orders will push the price back up. Support and resistance zones are actually built by orders in the market. They are in fact, other traders, banks and commercial companies trading FX for various reasons. Most are all actually trading for commercial reasons like multinational companies rather than speculating. Now, here's something you might not already know, but which can help you in your forex trading. As it turns out, each currency pair has a set of moving averages that tend to work as key psychological support resistance zones. The most common of these are the 200SMA, the 50-day SMA or EMA, along with the 9, 12, 14, 18 and 21-day SMAs depending upon the currency pair. So let's take a quick look at the chart to see what I mean. So what we're doing here is we're taking our trading platform and we're using the daily timeframe again and we're plotting a few of these moving averages that we've just mentioned in different colors and we'll see how they react with the candlesticks on the chart. Then we'll do the same on smaller timeframe and you'll see what happens when price meets the moving averages. So beyond spotting support and resistance zones, what else can moving averages be used for? Well, they're obviously very good for spotting trends. On the chart, you can see again, we're using the EuroUSD, which is a daily chart. We've got a nine in green, a 21 in yellow and a 50 in red and these are EMAs. And just for good measure, we've also put on the 200-day SMA in blue. The rules for this are simple. In short, the moving averages need to align in a downtrend, the shorter term moving averages must be below the longer term ones. And in uptrend, the shorter term moving averages must be above the longer term ones. Therefore, for a downtrend, the eight must be below the 21, the 21 below the 50 and the 50 below the 200. For an uptrend, the eight must be above the 21, the 21 above the 50 and the 50 above the 200. In a downtrend, you should therefore be looking for long entries and in a downtrend for short. If you get a little bit more practice with these, you can in fact use them to determine how strong a trend is. Instead, using a combination of the above rules broken down. So for a short term correction in a downtrend, the eight will be below the 21, but the 21 will still be above the 50 and the 50 still above the 200. That's the concept, but don't worry, you're not expected to take this and start finding trades right away using moving averages. More detail will be covered later. But first, there's one more important fact to address. That fact is if you get to understand how each currency pair reacts to these moving averages, you can actually create a profitable trading strategy on these moving averages alone. They're very wealthy and highly successful forex traders trading only off moving averages. They are extremely powerful if used well. Back in 2012, for example, with the most basic moving average crossover strategy, you could have returned more than 20% on a single currency pair, only trading the 30-minute charts. In fact, with minor tweaks to that example, and probably for the Euro trading again during 2012 on the daily timeframe, you could have returned 10% using only a 5% net account risk. And you'll replace seven trades in total for the whole year. The best moving averages to start with are the 8, 21, and 50-day EMAs and the 200-day SMA. Why? Well, there are several reasons. To start with, it turns out that these levels act as quite good support and resistance levels, and they seem to work on most popular currency pair as demonstrated with the Euro-USD chart. Also, the 21 and 50-day EMAs allow you to quickly view medium-term trends. In short, when the 21 is above the 50, it points to an uptrend. When the 21 is below the 50, you're looking at a downtrend. It's one more thing worth knowing about moving averages. They are commonly used by other market participants, which means there's an increased chance of them working. After all, if lots of traders are using the same indicators and arriving at similar conclusions about a trend, then it's more likely to happen. Obviously, no guarantees, but you get the idea. Right, now we're gonna move on to take a look at oscillators. Unlike moving averages, which show the direction of the trend, oscillators provide information about the momentum of the trend currently in place. They usually appear on their own chart, but are lined up with the price chart along the x-axis to show price momentum at their respective times. By presenting momentum in many different ways, oscillator indicators can provide buy and sell signals by showing where the asset might be overbought and thus indicate where a change in trend may occur. Some common oscillators are the moving average, convergence divergence, or more commonly known as the MACD, the stochastic, the relative strength index, or RSI, and the rate of change, which is ROC, and the commodity channel index, which is referred to as the CCI. A couple of these we're gonna discuss now in more detail. The relative strength index, or RSI, is quoted a lot in analysis that you might read about for forex and stocks. The frustration with the RSI is that they have oversimplified the power of this indicator. So in this session, what we're going to attempt to set the record straight, showing you exactly why it's so powerful and how you can use and how to avoid the potential pitfalls you can run into if you're not careful. As I say, the RSI is a momentum indicator. Momentum indicators are designed to try and highlight when trends are coming to an end or there is a possibility for a turn in the market. In its most simplest form, the RSI highlights where something is overbought or oversold. The RSI has a range of zero to 100. A reading of above 70 is considered overbought. A reading of below 30 is considered oversold. And knowing that information in addition to what you can see on your normal price chart can help you decide whether a trend on a forex pair is likely to continue or end in reverse. It sounds pretty simple and very useful for trading, but there's one important myth that needs to be dispelled. A reading above 70 does not mean go short. Equally, a reading below 30 does not mean go long. Maybe you've been told otherwise in the past, but please do not fall into that trap. The EuroUSD chart that you can see on your screens, I've highlighted the corresponding areas of oversold on the RSI and the candles the oversold reading relates to. There's also an area of overbought and the candles overbought reading relates to again. As you can see from the chart, actually taking a long in an oversold in a cell in the overbought looks to be doing okay. The first trade long on the far right has played out quite well. The second box on the RSI, the overbought region, they have extended the long and gone short. So, so far, so good. At the third box, they exit the short, meaning that they now have two profitable trades and are on a roll, so to the third trade, long from the third box, which is obviously the RSI is giving the signal as it's below 30. So that's in the oversold region. Some traders might have taken that move below 30 on the RSI as a signal to back up the truck and buy the EuroUSD, especially if they listen to certain market commentators. Okay, it was certainly flashing up oversold, but take a look at what happens next. See how the price continues to drop. Now your long trade, had you taken it when the RSI flashed oversold would be significantly out of the money. That proves that you need to be smarter with the RSI. So how do you trade this indicator? Well, it's extremely powerful once you add in a few other rules and start to consider what the indicator is actually telling us. The three main ways of using the RSI are this, supporting a trade. When in a strong up trend, you can use moving averages to define this again. You can then use the RSI to highlight when to enter into a long position. In other words, do not buy in overbought, but wait for a bounce and turn and then enter long. Conversely, the opposite is true for a downtrend. This works especially well when trading trends on a higher timeframe and using the RSI on a lower timeframe. For example, trading the trend on the four hour charts and looking for oversold and overbought regions on an hourly chart. The absolute key to remember here is that this only works in strong trends. Highlighting trends in the market is a second use for the RSI. Higher highs in momentum means the market is starting to trend more aggressively to the upside. Lower lows mean that the market is starting to trend to the downside. Final way of using it is using both of the above points and then looking for divergence. Cannot be overstated how powerful divergence between price and momentum is. If there is a strongly trending bullish market, i.e. going up, expect to see this momentum indicator trading in the same direction. Excuse me. As soon as you see a downtrend and a downtrend in the momentum indicator and an uptrend in price, that's a warning signal. It's a sign that the market may well be losing momentum and is about to turn. Trading this simple factor loan is a highly profitable strategy. I'm going to show you now here an Australian dollar chart. The initial starting point is based on a peak in the RSI which I've circled. The RSI has been trending down with price. So, seeing how towards the end of April, price started to flatten out and bottom with the RSI. RSI then reversed and the price moved lower in a nice smooth downtrend. Then there is an area of oversold on the RSI. This is a clue but at this moment, you know how dangerous this signal can be. So, hold off going long given that there's such a strong trend. Four days past the initial signal, the price drops lower and the RSI has moved up. So, you'll be pleased you didn't enter that long too soon. Here, there is a sign of divergence, a potential loss of momentum but you still shouldn't go long yet because it's best to look for multiple signals pointing to the same thing. So now let's take a look at the next chart. This shows the same Australian dollar chart but a few more days have passed and you can see the RSI continues to move higher as price moves lower. Then there is a nice long signal. You can see I'll just blow it up a bit here so it's clearer. Those really long tailed candles, a telltale sign of a good trading opportunity. These offer a nice entry point for a long trade. You can see then how this played out. Yes, that's right. You could have made from 97 cents to $1.04 using this one initial technique. That's 700 pips in one trade, a very nice long trade and what's more, if you use the moving average technique mentioned earlier, you could have netted yourself a lot of money by increasing your trade size on the dips back to the dynamic support. Okay, so that's the RSI. Now I'll introduce you to the stochastic oscillator. Often simply referred to as the stochastics. It's another momentum indicator. Essentially, it compares the closing price of an underlying with the underlying range is defined by support and resistance levels. In the majority of versions of the indicator, you'll see two separate lines plotted, the D line and the K line, sometimes and more correctly referred to as the percentage K and percentage D line. The K line provides the momentum based on closing price and high and low where we define the number of periods for the high and low. The D line is most commonly the three period EMA of the K line. These results are normalized on an index value between one to 100 and you can see this on the chart on the screen at the moment. The stochastic indicator has been set up with a percentage K line in yellow with a 21 day range and the D line, percentage D line in green as a three period EMA of a 14 period K line. Simple rules on the above are to look for a cross between the percentage K and percentage D line. Essentially, on the chart on the screen, yellow above green is bullish and yellow below green is bearish. Similar to the RSI indicator, similar to RSI, this indicator has an overbought and oversold region. Typically a value below 20 is oversold and a value above 80 is overbought. When you combine the oversold and overbought regions with the crossing of these lines, these signals can become more powerful. In the example we're looking at the screen now, square boxes have been drawn to indicate where the percentage K line in yellow crosses the D line in green in an oversold region. Where the percentage K line crosses the percentage D line in an overbought region has been indicated by circles. In short, the square is a potential long entry and the circles are potential short entries. Hopefully you're starting to see why this indicator works so well. In the chart we're looking at now on the screen, it's been scrolled back further so you can see what happened previously with these signals. Same rules before reply regarding the circles and squares. This becomes interesting if you start to use support and resistance lines to move stops on these trades to recent highs and lows to capture the trend. Remember the support and resistance strategy of joining highs and lows together. Well, if you wanted to take the above and build it into a strategy, a good tip would be to look at how you could use stops based on support and resistance and trail these to capture larger trending moves. Another hint would be that this works on lower time frames and to try combinations of the following sequence of numbers. So the percentage K and percentage D lines with three, five, eight, nine, 13, 14, 21 and 34. In a similar way to the RSI, this indicator has some hidden extra features. Divergence on the RSI is a powerful tool to help traders and it turns out you can apply the same divergence technique to the stochastic. You can apply divergence to the percentage K line to offer warning signals in the same way that we did with the RSI. You can do this. You use the percentage D line or the green line on the chart to offer a divergence signal between the underlying and the line itself. You look at the chart on the screen now, a slightly different stochastic oscillators being plotted on the GBP-USG chart to highlight a divergence area between the D line green and the actual price. You can see here that there is no real follow-through for what should be a push higher. You can use this as a warning sign when you see the cross in the stochastic lines. It gives you a very good entry point. It's most definitely a good indicator to having your arsenal of tools to help improve the probability of your trades. We're now gonna move on to look at the Bollinger Bands. Invented by John Bollinger, Bollinger Bands are moving average, normally a simple moving average, coupled with a standard deviation from that average. Common setting for Bollinger Bands are 20-period moving average. This is an example of a simple moving average and two standard deviations. What this will draw on the chart is a moving average with an upper and lower band, where the upper band is at plus two standard deviations and the lower band will be at minus two standard deviations. Standard deviation gives an idea of how much variation there is from the average. In a completely random set of results, slightly over 95% of all results should be within two standard deviations from the mean. And over 99% should be within three standard deviations from the mean. Translating this into price movement, assuming that the price is completely random, in theory, there is a large chance, around 95%, that the next price the market makes will be within the upper or lower Bollinger Bands, assuming you use the default settings, where the price is completely random or not, is an argument for another day. But for the moment, assume it isn't. Even then, the upper and lower Bollinger Bands provide a good boundary for how price may move in a certain period. Taking this to the next level, you can look at two certain environments, trending and non-trending markets. In a trending market, price will be pushing in one direction. With regards to the Bollinger Bands, this means that price will be pushing on the upper or lower boundary as it moves in that direction. However, in a non-trending environment, or a more range-bound, choppy environment, the Bollinger Bands can act as barriers to price. Instantly, you should be thinking about how this could be used to create a strategy. Let's say you're in a range-bound market or low volatility environment. In order to find out whether you're in this environment, you can use a few different indicators, such as the ADX, which gives you an idea of volatility, or moving averages, or the MACD, to give you some clues. Then once you've identified this range-bound environment, you can use the Bollinger Bands as a guide to potential price movements. One common strategy people use is called fading. What you need to look for in these situations is an extreme price movement in low volatility, which will then take the opposite side of. The example now that we're looking on the screen shows the Bollinger Bands plotted at 20 to 20 and three Bollinger Bands. You then need to look for price to hit or touch the outer Bollinger, and then start to move back into the Bollinger range. If price then breaks or closes above the inner Bollinger, you can get the direction towards the moving average. Assuming you're trading the UK session, then this is your potential play for the day. Running relatively tight slots on a lower time frame will allow you to use this to capture a fade in the opposite directions. The key with this strategy is to ensure you're in a low volatility environment and that you stick to your trading sessions. In a higher volatility environment or trending breakout environment, you can use the touch or break of the two to three standard deviation bands to highlight where the trend is going. In trending environments, you can use a pullback towards the moving average or the midline to enter in the direction of the trend. Again, this allows you to run tight stops in order to attempt to capture the trend. These systems tend to work well on lower time frames and when used with good risk reward money management strategies. They offer some really good strategies on highly traded pairs, specifically I'd focus on the Euro-USD. Now we're going to take a look finally at the MACD or the moving average cross divergence indicator. This is the result of crossing moving averages with the power of divergence. The indicator is compromised to three separate components. One, the MACD line, two, the signal line or the average line and three, the difference. The MACD line is created by calculating the difference between the fast EMA and the slow EMA. The signal line is the EMA of this MACD line. It often has what is called a smoothing factor. That is essential that you take the average of the average. So let's look at an example. MACD is frequently used with the following settings. The fast EMA is 12, the slow EMA is 26 and the smoothing is nine. In order to construct the MACD line first create a 12-day EMA, which is the fast line and then a 26-day EMA, which is the slow line and subtract the fast from the slow, which creates the MACD line. Then take the MACD line and work out the nine-day EMA of that. This gives you your signal line or an average line. Finally, work out the difference between the two to give you the difference measure. Remember that the purpose of this indicator is to detect changes in overall trend direction. On the chart now, you can see that the MACD, MACD line is in green, the signal line is purple and the difference is represented by a blue bar chart. Note that the indicator will look different on MT4 as the basic MT4 version doesn't include all of these settings. There are three key ways that traders most often use the MACD indicator. One, the line cross. When the MACD line crosses the signal line or two, the zero cross. When the MACD crosses the zero point, three divergence. Then firstly, let's take a look at the line cross. So the first technique is relatively simple. The concept is that when the MACD line crosses below the signal line, the market is looking to move lower. Conversely, when the MACD line crosses above the signal line, the market is looking to move higher. Technically, if you tweak the setting per currency pair, this can be a profitable strategy. Although it takes a lot of work to find the right numbers to use on different currencies. The chart on the screen, the crosses in the MACD and the corresponding candles they relate to have been marked with circles. A blue line has been plotted where the trade is profitable and a red line where the trade loses. As you can see, the system does well in a trending market but not so well in markets that chop. So let's take a look at the zero line. This is simply when the MACD line, the green line on the chart crosses the zero point. In the chart on the screen now, the signal on the MACD line and the corresponding candlestick on the chart have been highlighted and the trades have been plotted again. Technically, if you had run this with the most common settings for the EUROSD, you would have made a profit. However, it would have been a bumpy ride and the strategy didn't fare so well in previous years primarily because we need longer trending markets for this strategy to perform. Final way of using the MACD is divergence. Price divergence with the MACD line. This is exactly the same with RSI divergence. All you're looking for here are warning signs in the market. In the chart on the screen, you can see the lower highs in the MACD line with the higher highs in price that were marked. As you're already aware from the MACD and the signal line, you're looking for a retracement lower. Therefore, the divergence on the MACD line and the price offer a good opportunity to enter the market. In fact, using the MACD signal line cross as your entry point and divergence as your exit point is quite a good strategy. What is really powerful in the MACD is if you combine all of these core concepts together in one strategy, working with different parts of one indicator can build some extremely profitable systems. The MACD's key limitation, however, is that it's not always that great in very choppy markets. So you need to understand how to use these components together to get the best out of them. In its most basic form, the MACD cross with signal line can give you a good idea of the trend. Using the different bar charts, you can see how strong the trend is and whether it's losing momentum. The bars get bigger as momentum increases and smaller as it decreases. The MACD is at its most powerful when combined with other strategies and chart patterns to confirm your trade. It will provide you with three distinct signals in one neat package, which you can use to confirm multiple trade setups in one go. The real joy of these top three indicators is that individually, they're impressive. However, if you can master and combine them to work together, they can become really powerful. And that concludes our look at technical indicators. So I'm going to take a quick sip of water here and I'll open the floor up. If you guys have any questions, if you want to type them in the chat box and I'll try and cover as many as I can in the next five minutes or so. Okay, I'm guessing by the lack of questions, I've done a fantastic job at explaining those technical indicators to you. I'll just give it another 30 seconds here to see if anyone does have any questions. If not, we'll be wrapping the session up for today and for the year and for the decade and we'll be starting again at the beginning of January with the, we're moving on to the intermediate set or intermediate sessions in our online education course. So we're going to start looking at some more advanced information and strategies as we move into January. Andrew, myself, Andrew, I really try to avoid trading news releases. My whole philosophy about trading is that I'm looking to identify high probability scenarios whereby I am stacking all or as many of the odds as I can in my favor. And what I don't want to bring into that equation is a known unknown, so to speak. I don't want to trade a news release because more often than not, what happens is the volatility or noise around the release has a tendency to perform the function of stopping people out of trades. And then the market tends to move on in the direction that it was originally moving in once the books have been cleared both sides of the market. So I really, unless I, if I'm in a position that's running profitably and I have the opportunity to move my stock to my entry, making the trade risk-free, then depending upon my view of a news release, I'll sit through the news release. But I certainly don't look to initiate new positions heading into tier one data releases. So things like the FOMC, the ECB meetings that we're going today, the UK elections, there are being events tonight, the jobs data, all of these type of tier one market moving events are not something that I personally look to participate in. Okay, thanks for joining me today, guys. And I look forward to working with you in the new year. As I say, when we move into, look at intermediate market strategies and education. So thanks very much for your time and I look forward to seeing you all in the new year.