Good indicators of Forex. The best trend indicators "Forex"

Many traders use good indicators in their work. "Forex" is very variable, and to search for the optimal entry point you need to use all available tools. By means of signals given by indicators, market participants decide to buy an asset or sell it. As practice has shown, there is no single indicator that would always give the exact signals to enter the market. On the other hand, using the best trend indicators of Forex, you can see very interesting moments in the market. Excluding false signals from each other, automatic analysis tools allow an objective assessment of the situation.

Why are indicators needed, in addition to identifying entry points?

Good indicators of Forex are irreplaceable tools for participants of the currency market. If specialists can see the market and anticipate the price movement without auxiliary programs, then beginners are simply necessary. The very first thing to do when analyzing the situation before concluding a deal is to determine the trend. He will indicate the direction of the entrance: buy or sell. Further, having found the most attractive entry points, you can already take active steps. Good indicators of Forex allow you to determine the trend as accurately as possible, the direction of price movement. Instruments can be used at different time intervals, which will give grounds for studying both long-term trends and short-term ones. Indicators also provide assistance in the presence of open positions. Analyzing their data, you can determine at what point the momentum of the price movement has already been exhausted and it is worth waiting for the reverse movement.

Moving Averages, or Moving Averages

The simplest and most universal trading tool of the market is moving averages, or Moving Averages. Two indicators, two lines on the price chart are able to give very accurate signals. Tools are used by many traders and underlie numerous strategies. For example, an automatic tool with parameters of 200 and 50 may indicate a trend. It is generally accepted that when the 50th line goes above the 200th, the trend is ascending. When the situation is reversed, the trend is falling. Many, experimenting with the parameters of the instrument, achieve decent results in trade. To maximize the effectiveness of moving averages for each time interval, you need to set your own parameters. The best indicators of "Forex" are, undoubtedly, moving averages.

MACD - a reliable assistant in trade

In the 60s of the 20th century, Gerard Apparel developed an indicator called MACD, which helps confirm the trend. With the help of a computer program, you can clearly record the phenomena of convergence and divergence. When the price on the chart goes up and the indicator falls down, this indicates a change in the current trend. This is also indicated by the mirror situation. With positive indications of the instrument, one can speak of the northern direction of the price, while of the negative one, of the southern direction. Based on the information provided by the tool, you can make effective trading decisions. In combination with moving averages, MACD will help show the excellent results of trading.

RSI - help in identifying overbought and oversold zones

Studying good indicators of "Forex", you can not miss the attention of the RSI. This analysis tool shows when the market reaches the overbought zone and overselling zone on the market. If the indicator waves are closer to zero, then the number of sales is already reaching its critical zone. When the wave of the indicator reaches the level of 100, this indicates that the buyers have already run out of power, and the trend is running out. Filtering false signals helps Stochastic. This is another tool from the category "The best indicators of Forex". Stochastic is more sensitive to price movement. When the signals of two instruments overlap, it means that it is worthwhile to look for entry points.

Bollinger Lines

If we are describing the best trend indicators of Forex, we should also consider the Bollinger lines. The tool draws a moving average, the parameters of which are set by the trader. A certain corridor is formed, which determines the average price deviation in a certain period of time. On the chart, the indicator looks like a corridor, within which the price "walks". Signals to buy or sell come when one of the corridor's corridors breaks through. This tool to a greater extent helps beginners to see the market. There is another strategy, according to which, after a significant narrowing of the corridor, a strong movement begins.

Arrow indicators and their analogues without drawing

It is convenient for many traders to use in trading the best arrow indicator "Forex", which everyone chooses independently. The advantage of this automatic tool is that it does not overload the price chart. It is formed on the price chart in the form of arrows, which determine the expected market movement taking into account a number of parameters. Visually, this trading tool is easily perceived, which simplifies trading for the trader. Very effective in trading the best indicators ("Forex") without redrawing, the evidence of which does not contradict the movement of prices in the market. One example of drawing is the different indications of indicators at different time intervals, which show different values. This complicates the adoption of trade decisions. That is why it is extremely important to check the tools for the presence of drawing before applying them to the trade.

Summing up

Each trader has his own best indicator of "Forex", which is most convenient for him to use. This does not mean at all that the tool used by a specific trade participant is the most effective. Most likely, the information that he transmits is most easily perceived by a certain person. Experts say that to build profitable trade, it is not necessary to install all available tools in the terminal. The optimal number of indicators is 2-3. Let's pay attention to the fact that almost all tools for automatic trading are built on the basis of technical analysis and based on the average value of prices in a certain period of time. Moreover, they all show practically the same signals. The question is only with which tool it is more convenient to work for each person. Let's pay attention that it is impossible to use only indicators for trading, as it is characteristic for them to give false signals. Their introduction into the trading strategy is much more efficient and profitable.