Indicators are designed to bring clarity to your chart. Nevertheless, with the current variety of FX trading indicators, it becomes challenging to choose the right ones. Our experts have designed brief summary of the most useful indicators - so there is no need to spend time digging through comprehensive books.
When it comes to trading currencies, all traders need to follow some indicators to help them determine the future moves – buy, sell, etc. In trading world, some indicators are rather common and most traders keep a close eye on them. If they trade manually or program a tool to do the trading for them, they need to focus on certain data that will help them take the optimal decision. As for technical trading, there aren’t many good Forex indicators. We have the Bollinger Bands, the Stochastic, Ichimoku Kinko Hyo, MACD (moving average convergence divergence) and a few others. Most traders use these indicators in combination and prefer simpler indicators to more sophisticated ones. Bollinger Bands is an indicator that shows market volatility based on mathematical probability. Price trends help you determine whether the price goes up or down. The Stochastic indicator is a chart-like indicator that shows when there is an overbought or oversold situation on the market. The Ichimoku Kinko Hyo is a more complex indicator that covers the highs and lows for different periods of time and helps you determine the potential outcome. The MACD is used to determine new trends, based on averages.