Forex Indicators are the Key to Profits
Forex Indicators are very important and decides the trend
Forex indicators are many and each trader follows an indicator depending on his taste and strategy. Traders mainly look at two types of indicators like technical indicators for for long tern plans and economic indicators (depending economic calendar) for short term plans. Economic indicators are high fluctuating signals and not advisable for inexperienced and new traders. Technical indicators give more insight into the Forex trend for a given period and gives indicative signal to ‘buy or sell’
Every Forex trader must have a plan of action or follow a strategy to do trading. To decode the strategy Forex indicators show the clue. The Forex technical Indicator list is too big (See the Forex indicator list here). Trader choose the indicators depending on the popularity, importance, and usefulness to their trading strategies
Forex Technical Indicators
Technical indicators are very important to decide the changing trend in the Forex market and this information is very important for trading plans whether long term or short term.
List of Indicators
My Most Favorite Indicators
Moving Averages Convergence Divergence (MACD)
The MACD indicator charts the convergence and divergence of short term and long term moving averages. MACD shows graphically when the short term movements of price rise or fall faster than the longer moving average would suggest. This indicates the recent trend.
Relative Strength Index (RSI)
RSI is a trend following oscillator that ranges from 0 to 100. It gives an indication whether a currency is currently “overbought” or “oversold”, or in other words, it is a measure of momentum. RSI is one of the most popular technical indicators in technical analysis.
Moving Averages
The Moving Average is the most basic technical indicator when it comes to technical analysis. It is used to identify trends, as it smooths price action into a single line. The Moving Average gives basic trading signals when price crosses it.