Forex indicators can help you analyse currency pairs for trading signals. They are based on unique algorithms that crunch all of the price data from the forex market and present you with an indication as to which direction the market may be heading.
The majority of forex indicators are based on technical analysis, although some also look at candlestick patterns and fundamental analysis.
There are literally thousands upon thousands of forex trading indicators that you can choose from, both free and paid. Forex platforms will contain a great selection of the most popular indicators including the moving average, MACD, RSI and Bollinger Bands. There are indicators for spotting trends, overbought or oversold conditions, ranging markets, reversals and more.
You can use forex indicators on any currency pair and chart timeframe. Combing short and long-term market analysis with indicators can help to give us a better outlook of the overall market direction. Along with other forms of forex market data and analysis, indicators can help you to make informed trading decisions and may be used as the basis for your forex trading strategies.
The force index indicator is not as popular as some of the more well known forex technical indicators but can still be a very important trading tool when incorporated within a more complete forex trading strategy. The primary purpose of using the force index indicator is to show traders how ..Read More
The Aroon indicator was developed by Tushar Chande in 1995, and is an indicator based trading system that determines whether a trading instrument is trending or not and how strong the trend is. As conceived by the creator, Aroon had to determine points for entering trades before other indicators and ..Read More
The Vortex indicator was developed by Swiss technical experts Etienne Botes and Douglas Siepman and published in the January 2010 edition of Technical Analysis of Stocks & Commodities. Since then, this indicator has gained immense popularity amongst forex traders. It is commonly used to help identify the start of a ..Read More
Momentum traders rely on technical indicators to measure the dynamics of price activity based on a particular level of an asset. Their approach is opposite to that of a long-term investor in the sense that a dynamic trader wants to trade with a trend. As the asset price grows, the ..Read More
The Volatility Index, or VIX, is a market index that represents the market’s volatility of the next 30 days. It was created by CBOE (Chicago board options exchange) in 1993 for the S&P 500 Index. Since then, the VIX is commonly used as a gauge of U.S. equity market volatility. ..Read More
Two groups of traders are constantly present on the market, one of which is selling an asset and is known as the bears, whilst the other group of trader buying an asset are known as the bulls. Hence, this is where the terms bearish (down) and bullish (up) market come ..Read More
Tushar Chande and Stanley Kroll developed the Dynamic Momentum Index indicator and published it in the Stocks and Commodities Magazine in 1993. The indicator can be applied to any market or trading instrument to help find potential trading signals. The DMI is identical to Welles Wilder’s Relative Strength Index except ..Read More
Relative Volatility Index (RVI) was developed by Donald Dorsey, not as an independent trading indicator but as a confirmation of the trading signals. It was first introduced in the journal “Technical Analysis of Stocks and Commodities” in June 1993. The redesigned indicator appeared in September 1995. The Relative Volatility indicator ..Read More
The Center of Gravity (CoG) is a channel indicator of technical analysis. The CoG indicator is not included by default in most trading platforms. It is not in the Metatrader 4 (MT4) program by default although you can download the indicator from various sources online. The indicator consists of five ..Read More
Some experienced traders may only roll their eyes when they hear the following mantra, but it is worth repeating it as often as possible, “the trend is your friend”. Most professional and expert traders believe that the sooner you recognize the market trend, the more success you can have by ..Read More