Ryan Thaxton

Purchasing power parity (PPP) measures the cost of identical goods in different countries. It’s often compared against the exchange rate of different currencies to determine the real purchasing power of different countries’ currencies. Traders and economists use PPP to help gauge a currency’s value in relation to another.

Standard deviation measures how volatile a set of data points are compared to the average mean. Learn how to use standard deviation to measure volatility while trading markets like forex, stocks, and indices.

The money flow indicator (MFI) measures the price movement and volume of trades for a security over a given period. Learn how to integrate the MFI into your trading strategy and how it compares to other oscillators here.

Most technical indicators can be categorized as either leading or lagging depending on the market patterns they identify. Learn the difference between them and how to use both in this guide.

Exponential moving averages (EMAs) are moving averages adjusted to give greater weight to the most recent price data. Learn how to calculate the EMA using any number of periods and how to start using the EMA in your trading strategy.

The Purchasing Managers’ Index is a popular formula to measure the monthly economic change in a country’s manufacturing sector. Traders can use it as a leading indicator to foresee economic developments.