What is Forex Indicator?
Posted by Homi .M on 08 May 2013 12:12 PM
          What is Forex Indicator?
Indicators are used for identifying, or creating patterns from the irregularity of the currency market. In all cases, they receive the raw market data as the basic input and manipulate it in different ways to create actionable trading scenarios. The natural consequence of this description is that indicators are not tools of prediction. Instead, they are used to give order to the price data. No indicator is right or wrong with respect to the signals that it emits, but each of them must be used with an appropriate money management strategy in order to deliver the desired results.
There are many different kinds of indicators. Every trader uses his or her favorites. Yet most traders will agree that there are three indicators that every currency trader must use.
  • Moving Average Lines
  • Bollinger Bands 
  • Average Directional Index (ADX) 

 Also, here are four different market indicators that most successful Forex traders rely upon.
  • Trend-Following Tool
  • Trend-Confirmation tool
  • Overbought/Oversold Tool
  • Profit-Taking Tool
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