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Overlays

Overlay curves are plotted over the price curve. Some traders use them to identify if a market trend is in progress, and to act when the price curve intersects particular overlay curves.

The following overlays are available from OANDA's FXTrade interface.

Bollinger Bands
Three simple moving average (SMA) curves, with standard deviations added/subtracted from the upper and lower curves. When the price curve touches these outer curves, it is believed the currency is overbought or oversold.
EMA
An Exponential Moving Average (EMA) that smooths the price curve for better trend identification by placing greater importance on recent data.
Ichimoku Kinko Hyo
Meaning "equilibrium chart at a glance" in Japanese, Ichimoku Kinko Hyo is a number of curves and shaded areas used by some traders to define market trends, levels of support and resistance, and to generate signals of purchase and sale.
Parabolic SAR
Stop and Reverse (SAR) signals that are series of dotted lines placed above or below the price curve. Depending on their position, they are intended to indicate the times to enter short, enter long, or exit positions.
Pivot Points
Four curves calculated from previous prices that are used by some traders for historical analysis of the resistance and support levels that signaled trade entry/exit points.
SMA
A Simple Moving Average (SMA) curve where the price is smoothed (averaged over the previous n periods) for easier identification of trends.
STARC Bands
STARC (SToller Average Range Channel) bands are two lines on either side of a simple moving average. Some traders use them to determine the level of risk prior to entry.
WMA
A Weighted Moving Average (WMA) that smooths the price curve for better trend identification by placing greater importance on recent data. The most recent data is weighted even more heavily than with the EMA using a complex weighting algorithm.