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Moving average indicator explained on IQ Option

A moving average indicator is a main indicator that shows price movement direction. When processing moving averages the mathematical pricing average of a particular period as measured by candlestick quantity. For example, in order to calculate the value of a five candlestick period the indicator divides the sum of their closing values by five. Then the indicator moves one candlestick forward and makes the same calculations in this manner. Continue Reading

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How does the MACD indicator work?

MACD indicator is used to determine the current trend its strength and the probability of its reversal. It consists of the MACD line, a signal line, and the bar chart.
The MACD line shows the difference between two EMA moving averages with different periods. When the MACD line crosses the zero line it indicates that there is no difference between them at this moment. Continue Reading

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What is leverage and how do You use it?

CFD trading and leverage
CFD trading at IQ Option allows traders to use an additional tool called leverage. Leverage is used by traders to borrow extra funds from brokers like in mathematics.

Leverage increases the trader’s initial investment by a certain percentage but it also puts it at risk. As leverage poses serious risks for traders especially in periods of high volatility it should be used with attention and caution. Continue Reading

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Bollinger Bands. How does it work?

How Bollinger Bands indicator is constructed?
Bollinger Bands is an indicator that sets the range of asset price movement. It is built on the basis of three moving averages one in the middle and two others located the same distance from the first one. Range width is calculated by the mathematical formula of standard deviation. Continue Reading