Using Technical Indicators...

[StefGrig]

Price charts help traders identify trade-able market trends - while technical indicators help them judge a trend's strength and sustainability.

If an indicator suggests a reversal, confirm the shift before you act. That might mean waiting for another period to confirm the same indicator's signal, or checking out another indicator. Patience will help you read the signals accurately and respond accordingly.

Types of Moving Averages

One of the most widely used indicators, moving averages help traders verify existing trends, identify emerging trends, and view overextended trends about to reverse. As the name suggests, these are lines overlaid on a chart that "average out" short-term price fluctuations, so you can see the long-term price trend.

A simple moving average weighs each price point over the specified period equally. The trader defines whether the high, low, or close is used, and these price points are added together and averaged, forming a line.

A weighted moving average gives more emphasis to the latest data. It smoothes out a price curve, while making the average more responsive to recent price changes.

An exponential moving average weighs more recent price data in a different way. An exponential moving average multiplies a percentage of the most recent price by the previous period's average price.

Finding the best moving averages and period for your pair

It can take a while to find the best combination of moving average and period length for your currency pair. The right combo will make the trend you're looking for clearly visible, as it develops. Finding that optimal fit is called curve fitting.

Usually traders start by comparing a few timeframes for their moving averages over a historical chart. Then you can compare how well and how early each timeframe signaled changes in the price data as they developed, then adjust accordingly.

When you've found a moving average that works well for your currency pair, you can consider this as a line of support for long positions or resistance for short positions. If prices cross this line, that often signals a currency is reversing course. Here's an example:

Longer-term moving averages define a trend, but shorter-term MAs can signal its shift faster. That's why many traders watch moving averages with different timeframes at once. If a short-term MA crosses your longer-term MA, it can signal your trend is ending - and time to pare back your position.

Stochastics

Stochastic studies, or oscillators, help monitor a trend's sustainability and signal reversals in prices. Stochastics come in two types, %K and %D, measured on a scale from 0 to 100. %K is the "fast", more sensitive indicator, while %D is "slow" and takes more time to turn.

Stochastic studies aren't useful in choppy, sideways markets. In these conditions %K and %D lines might cross too frequently to signal anything.

Relative Strength Index (RSI)

Like stochastics, RSI measures momentum of price movements on a scale of 0 to 100.

Always confirm RSI signals with other indicators. RSI can remain at lofty or sunken levels for a long time, without prices reversing course. All that means is that a market is quite strong or weak - and likely to stay so for a while.

Adjust your RSI to the right timeframe for you. A short-term RSI will be very sensitive and give out many signals, not all of them sustainable; a longer-term RSI will be less choppy. Try to match your RSI timeframe to your own trading style: short-term for day traders, longer-term for position traders.

Divergences between prices and RSI may suggest a trend reversal. Of course, make sure you confirm your signals before acting.

Bollinger Bands

Bollinger Bands are volatility curves used to identify extreme highs or lows in price. Bollinger Bands establish "bands" around a currency's moving average, using a set number of standard deviations around the moving average. Creator Jon Bollinger recommends the following:

Touching a high or low band doesn't necessarily mean an immediate trend reversal. Bollinger Bands adjust dynamically as volatility changes, so touching the band just means prices are extremely volatile. Use Bollinger Bands with other indicators to determine the trend's strength.

MACD - Moving Average Convergence Divergence

Developed by Gerald Appel, MACD (pronounced "Mac-Dee") plots the difference between 26-day and 12-day exponential MAs.

A 9-day MA serves as a trigger line: when MACD crosses below the trigger, it's a bearish signal; when MACD crosses above the trigger, it's a bullish signal.

If MACD turns positive and makes higher lows while prices are still tanking, this could be a strong buy signal. Conversely, if MACD makes lower highs while prices are making new highs, this could be a strong bearish divergence and a sell signal.

Fibonacci Retracements

Fibonacci retracement levels are a sequence of numbers discovered by the noted mathematician Leonardo da Pisa in the 12th century. These numbers describe cycles found throughout nature; technical analysts use them to find pullbacks in the currency market.

After a significant price move, up or down, prices often "retrace" most or all of the original move. As prices retrace, support and resistance levels often occur at or near the Fibonacci Retracement levels. For currencies, that means retracements usually happen at 23.6%, 38.2%, 50% or 61.8% of the previous move.

by Technical Analysis .

[Buhari]

Even when there are all these elaborate choices of indicators available today, it doesn't mean you should use them all. In fact, using too many indicators will only confuse you and most probably lead to bad trading decisions.So, instead of making forex even more complicated than it already is, focus on combining the right set of indicators that will actually show useful information about the market and confirm your ideas about trades.

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[wizardalltime]

using many indicators together if they using the same concept meaning less . no more than 4 indicators , you should have minimum one of them is a classic indicator .

[bulastika]

I always uses three sites and do the averaging in their future predictions. Or at least try to follow the majority votes. Its not really 100% efficient but using stop loss and same time ride the wave really will make you earn good.

[Estella]

Technical indicators help in establishing trends, which are critical for both traders and investors. It can provide unique perspective on the strength and direction of the underlying price action within the stock market.

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[katie27]

Moving average indicator's can be customized to be fast or slow based on the period, determining the problem exactly what is fast and slow, as it varies from system to system.

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[Peter Brandley]

I agree with all of you. There is no indicator that can predict the future. One of the best things for me are trendlines. I base everything off of them and the indicators that I do use need to support what the trend is. It also helps me get in or out at a better price.

[Guest Dominator4fx]

I agree with all of you. There is no indicator that can predict the future. One of the best things for me are trendlines. I base everything off of them and the indicators that I do use need to support what the trend is. It also helps me get in or out at a better price.

When we see the charts we can come to know that a particular currency is undervalued or over valued. We can use the daily trends to get the tardes and make some Profits :)

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[⭐ kaito kid]

Thanks for sharing, sir. Use technical indicators helps me to make decisions when i'm trading. I usually use market news analytic from FBS.

We can using both technical and fundamental. We can easy learning for technical, we can read and practice in our demo account. But for fundamental, we have to get from the best resource to get update market news. You are doing good for using a dailly market news from a broker you are using now, I am doing the same with you and really helped.

[felisterjack]

The world of the Stock Exchange can be a grueling arena with fierce competition between investors trying to double their money.

[shere0901]

Indicators are tools used by stock chart readers to help them analyze the future potential of stocks and other securities. Most indicators are developed using formulas that calculate two basic data points--price and volume. Most chart software today offers a large number of indicators that can be plotted on a stock's price chart or below the price on the chart. This allows analysts to make comparisons between the stock price and various indicators.

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[robert11]

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[mak123]

A technical
indicator is a graphic representation of price action. By technical
indicators we can filter out some of
the noise of the price movement on the chart and get an idea of the bigger
picture. The 3 important technical indicator used by trader as- 1) Moving
Average 2) Bollinger Bands 3)Average Directional Index (ADX).

[binaryowner]

I prefer fundamental analysis to technical as I'm not good with mathematics ( I don't like to use my rough-and-ready calculations for serious deals, as forex) and the second reason is that my broker included all effective tools in their web trading platform for performing fundamental analysis.

[msmary]

the forex market is depend on technical analysis more stockmarket . because it is relation with economic of country

[msmary]

i usually use Ma and rsi for trade . it is simple but it is effective . i like it

[nurfakih]

Hello anyone here, why all my EA do not support with new meta language??

My EA do not work right now, It makes me confused.

[deadman]

i'm using the MA and RSI for trading. i think every trader will have good indicators.

[uncle gober]

i am ysing Zaas system in my trading. this not for scalping system but i think this is good for the trader who want make money in long term trading. in the first time i learn forex from Video Tutorial are provided by broker. Armada Markets also provide it to help beginner understand further more about forex trading.

[Diaz]

The aim of technical analysis is to forecast price trends in future basing on the historical data along with the one of the volume. Technical analysts are sure that any fundamentals and even expectations have affection to exchange rates changing being the factors of the market. And I prefer using SR indicators

[forexpic]

I use only MACD + RSI(14) and i am glad with them :)

[tamzid92]

We traders basically use technical indicators to make sure our Wining in live trading. Free indicators help us to analyze the market movements but my indicators does analysis for me. Holy Grail Golden Eagle is the best and most effective Strategy that I have been using to get profits in Forex. It does analysis, provides me Accurate Trading Signals and helps me to get profits. When market moves for a while, it also provides Re-Entry Signals.

[Andre Silva]

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