Best forex indicator 7

Best Forex Indicators 2022.


Being successful when trading forex can be tough going. But that does not stop millions of us from having a crack at it every day – some more victoriously than others. That is why forex indicators are crucial.


Thankfully there are a plethora of tools available to guide us in making such challenging decisions. The likes of indicators and charts unearth insight into forex price trends, market sentiment, and price history.


As you can imagine – access to such useful and in-depth information gives traders inside knowledge when it comes to the perception of the wider market.


One of the most popular tools utilized is forex indicators, of which there are many different types. In this guide, we run through the 10 best forex indicators available and how you can use them to take your trading endeavours to the very next level.


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Table of Content.


What are Forex Indicators?


Before you even think about trading forex online, you should add the best indicators to your strategy.


What are forex indicators? Well, forex indicators are a big part of technical analysis, used by traders globally in order to aid the decision-making process.


When including indicators in your trading strategy, you are analyzing information about past and present. You will find this insight featured in indicators such as ‘lagging’ and ‘leading’.


As we said, the best forex indicators ensure that traders have the ability to fully examine information such as: the performance of the market, historical, current price data, market sentiment, and volume.


All in all, technical analysis in general is a major part of successfully trading forex. So, for clarity, the main components of technical analysis are as follows:


Momentum/volume indicators. Oscillators. Moving averages. Chart patterns. Price trends. Support and resistance levels.


As you can see, there is lots of help available to traders. The best forex indicators are a key component to predicting market sentiment, amongst other factors, of trading foreign currencies.


By utilizing the technical indicators available at your fingertips, you stand a much better chance at being successful trading forex. Moreover, the majority of experienced traders swear by having a strong trading strategy behind them.


Crucially, learning how indicators work right now is as good a place to start as any. This brings us smoothly onto our 10 best forex indicators – all of which you can add to your own currency trading strategy.


1 – Relative Strength Index (RSI)


Starting with the Relative Strength Index – generally referred to as the RSI for short – this indicator is a popular form of technical analysis that traders use the world over.


For those unaware, the RSI is classed as an oscillator and is one of the best trends indicating tools on our list. Traders use the RSI for uncovering momentum, showing when an asset is in the overbought or oversold camp.


This oscillator is also excellent at illustrating both hidden and obvious divergence signals in the forex markets.


In a nutshell, the RSI is the quantification of the unprofitable closing value in relation to the profitable closing value – shown as a percentage which will shift between 0 and 100.


The calculation looks like this:


We mentioned that the RSI indicates momentum in the financial market. So indicators of this type are used to calculate the velocity of forex price fluctuations.


Put simply, momentum indicators are a measure of short-term trends. Illustrating the durability and general health of the aforementioned price shifts – this is when ‘oversold’ and ‘overbought’ signals are generated.


As noted, the RSI shows a value between 0 and 100 which moves with the price fluctuations.


See below for clarification on both:


If the RSI reading is over 70 – this tends to illustrate that the security is in overbought territory. If the RSI reading is under 30 – this tends to illustrate that the security is in oversold territory.


So, what exactly is an overbought signal and why is it useful? An overbought signal tells you that the particular forex pair you are interested in is overvalued.


This usually follows a time period where the asset has experienced an upward trajectory. As you likely know, the price cannot continue in the same direction for too long without doing a U-turn.


As such, the RSI gives you a much better chance at predicting when a reversal might happen. For instance, if RSI has moved over 70, this could signal that a drop in price is imminent.


Ergo, if you interpret the trend formation as a sign that a reversal is coming – you may choose to sell and lock in your profit.


If on the other hand, if you see an oversold signal, the opposite is likely to happen. This could give you an indication that you should ‘go long’.


2 – Moving Average (MA)


Forex trading, especially in the short-term, entails keeping abreast with the latest price trends.


The Moving Average (MA) is one of the best forex indicators as it recognizes the direction of a price trend. Whilst also cutting out the extra noise of short term price fluctuations.


Calculating the MA can greatly help you to reveal any current and also emerging trends. The moving average essentially seeks out averages using mathematical equations and utilizes data to detect trends.


The MA spots the aforementioned trends and price averages. And levels out price action by cutting out the interference of short-term drastic price shifts.


Most forex traders use multiple time periods when generating moving averages. The most popular moving average time frames tend to be 50, 100, and 200-day moving averages.


Although the MA is a fairly rudimental technical analysis tool – it is undoubtedly one of the best forex indicators, largely due to its simplicity.


Moreover, a moving average indicator can be tailored to any time span. This enables you to not only view trends but also gain some insight into which direction the asset is headed and an averaging customer price.


When there is a downward trend, the MA can perform as a ceiling, or ‘resistance’ so to speak. On the other hand, in the midst of an upward trend, the average performs as a ‘support’, or base.


We should note that due to the fact the MA can be calculated for any timeframe. You will be able to utilize it to predict both short and long-term forex trends.


If you wish to calculate the MA yourself, simply add together the set of numbers and then divide that figure by the respective values.


Say you wish to calculate the moving average of a 2-year timeframe. Add together all of the numbers over the period. Divide the total number by 2.


Using multiple data subsets, the MA finds the average value. And crucially you can use it in conjunction with chart analysis.


As we touched on, this forex indicator is a handy tool for ascertaining levels of resistance and support. There are two types of MAs at the forefront and they are ‘simple moving averages’ (SMA) and ‘exponential moving averages’ (EMA).


SMA offers information on all values, and the latter concentrates on recent prices – which we talk about in more detail shortly.


3 – Moving Average Convergence Divergence (MACD)


The MACD is another popular tool on our best forex indicators list. This one spots shifts in momentum which is achieved by drawing a comparison from 2 moving averages.


By adding this forex indicator to your trading strategy you will be able to recognize potentially profitable trading opportunities surrounding resistance and support levels.


For those unaware, ‘divergence’ indicates that 2 moving averages are shifting away from one another. Whereas ‘convergence’ shows that they are moving towards one another.


Take a look at a simple explanation of how the MACD indicator is made up:


The signal line: It illustrates the shifts in price momentum, and also performs as a trigger – in terms of sell and buy signals. The signal line is the 9-period MA of the MACD. The MACD line: This line calculates the gap between the 2 moving averages. The MACD line is formed by deducting the 26-period MA, from the value of the 12-period MA. The histogram: This line calculates the contrast between the signal line and the MACD.


Only the signal line and the MACD line are utilized to calculate the MACD.


The MACD is shown as what is referred to as a ‘histogram’. You will see the contrast between the signal and MACD lines.


It can be taken as a sell signal if the MACD breaks through the signal line from above. If it breaks through from underneath you could use that as a buy signal.


This forex indicator is simplistic and dependable. Not only are you able to view the robustness and potential turning point of the trend – but also how strong sell and buy signals are.


This makes the MACD one of the best forex indicators for traders of all levels of expertise when it comes to an up-to-date illustration of market sentiment.


4 – Exponential Moving Average (EMA)


As we mentioned earlier, the MA is helpful for identifying trends – albeit. This particular indicator is focused more on recent price data. As such, some people call the EMA the ‘exponentially weighted moving average’.


In the short-term, the most commonly used EMA trend indicators tend to be between 12 and 26-days, or in the shorter term 5-20 minutes.


When opting for a long-term strategy, traders usually use between 50 and 200-day indicators.


Crucially, you can use the EMA alongside some of the other indicators on our best forex indicators list to verify noteworthy market moves and measure their validity.


5 – Bollinger Bands.


Bollinger Bands are one of the best forex indicators for illustrating the price range the financial asset tends to trade within. Put simply, this indicator is a statistical chart that depicts the volatility and prices of a forex pair over time.


The nearer the ‘bands’ are to one another, the lower the volatility of the instrument is thought to be. Ergo, the further away from each other the bands are, the higher the volatility is thought to be.


If a forex pair is trading outside of its ‘average’ trading levels – Bollinger Bands are going to show you this. This is particularly useful for trying to speculate on price fluctuations in the long-term.


If a price repeatedly shifts above the top band – this indicates the financial asset might be in the ‘overbought’ camp. If the price finds itself underneath the band – this indicates it might be in the ‘oversold’ camp.


Having the tools available to be able to foresee potential overbought or oversold assets is invaluable for predicting when to enter or exit the market.


6 – Ichimoku Cloud.


Let’s say you are looking to study historical prices, as well as current price action, in a bid to isolate higher probability trades. In that case, the Ichimoku Cloud could be one of the best forex indicators for the job.


Much like some of the other forex indicators on our list, the Ichimoku Cloud highlights resistance and support levels to forex traders.


However, in contrast, it also evaluates price momentum, subsequently offering forex signals to aid you in the decision-making process. Traders who like a chart packed to the rafters with information flock to this particular indicator.


Interestingly, in Japanese ‘Ichimoku Kinko Hyo’ actually translates to ‘one-look equilibrium chart’. As it offers a wide range of information in one place.


The indicator predicts the resistance and support levels of the present and the future. As well as spotting market trends and the direction they may go in.


To clear the mist, you will see below a breakdown of the 5 indicators Ichimoku Cloud indicator is made up of:


The Senkou Span A: This line tends to be yellow in color and is referred to as ‘leading span A’. Leading span A and is the midway point between Kijun Sen and Tenkan Sen. The line is projected 26 timeframes ahead of time and is calculated – Kijun Sen plus Tenkan Sen, divided by 2. The Senkou Span B: This line is often blue in color and referred to as ‘leading span B’. Leading span B is a moving average of the midway point from the previous 52 periods. The line is projected 26 timeframes ahead of time. The calculation goes – 52-period high plus 52-period low, divided by 2. The Tenkan-sen: This line is usually the color red and is also referred to as the ‘conversion line’. Tenkan-sen is plotted as a moving average of the midway point of the previous 9 periods. The Kijun-sen: This line is normally white in color and referred to as the ‘baseline’. Kijun-sen is plotted as a moving average of the midway point of the previous 26 periods. The Chikou Span: This line tends to be green in color and is often referred to as the ‘lagging span’. Plotted 26 periods in the past – senkou span creates the outline of the ‘cloud’. If the senkou span B is below Span A the cloud will be green in color. If A is above B the cloud is generally red in color.


As is evident from above, by reading the Ichimoku Cloud indicator you are able to monitor the ‘weather’ of the markets.


To simplify even further:


If the cloud is red it is likely there is a bearish trend. A green cloud tends to illustrate a bullish trend. A slim cloud usually shows you that the current trend is waning. The wider the cloud, the stronger the trend tends to be.


7 – Stochastic Oscillator.


The stochastic oscillator is classed as a momentum indicator. It draws a comparison between a precise closing price and a range of prices over a particular time frame.


We think the stochastic oscillator is one of the best forex indicators for its strong level of accuracy and simplicity.


This is another indicator on our list that illustrates when an asset has fallen into ‘overbought’ or ‘oversold’ territory.


If the reading is over 80 you are looking at a market that falls into the overbought category. If the reading is under 20 – this tends to indicate an oversold market.


Note, if the trend seems to be really strong, it does not necessarily mean that a market correction is imminent so tread with caution. Once again, this is why you should combine multiple forex indicators together to validate your findings.


Nevertheless, the stochastic oscillator offers strong buy and sell signals, which is incredibly useful when trading forex. The forex indicator also works really well alongside the RSI.


8 – Fibonacci Retracement.


The Fibonacci retracement makes our best forex indicators list because it helps traders calculate the market ‘pullbacks’ (or temporary pauses in a trend).


Pullbacks often create buying opportunities for traders looking to ride an upward trend. Essentially, the Fibonacci retracement is a drawing tool enabling you to gauge any partial reversals in the markets.


This forex indicator can be used in a variety of different price action phases, achieved by utilizing various retracement levels. Each level measures the number in percentage terms that a market has flipped in between 2 different points.


The indicator levels are usually as follows:


Between 23.6% and 38.2% for a ‘shallow retracement’ – indicating a quick-moving and strong trend. Between 61.8% and 78.6% for a ‘deep retracement’ – strong trending markets, albeit with a lower velocity than a shallow retracement.


You can use Fibonacci retracement between any two important price points – like a high and a low – forging the levels between the 2 points.


It would be better to create a stop-loss order below the previous price shift low of the upward trend – and higher than the previous price shift high of the downward trend.


When there seems to be an upward trend you will be able to utilize the Fibonacci retracement to gauge how much of the last big rally has been let go.


All in all, the Fibonacci retracement is one of the best forex indicators for identifying when to enter the market. You will also have a much better understanding of where is a good point to place ‘stop-loss’ and ‘take-profit’ orders.


9 – Average Directional Index (ADX)


The Average Directional Index, or ADX, is another tool used by many forex traders for establishing the potential strength of a particular trend.


One of the hardest things about trading forex, or any asset, is correctly predicting the direction of a trend. In the ADX, there are 3 indicators including ADX (black), Positive (green), and Negative (red) Directional Indicators.


The positive and negative directional aspects of this tool indicate whether a trend is weak or powerful. The ADX ranges from 0 to 100. Anything over 25 tends to point towards a stronger ongoing trend.


Based on a moving average, and usually spanning over a 14-day timeframe, the ADX concentrates on the strength of a trend – as opposed to its direction. If the green line (positive directional) is above the red (negative directional) – it is likely the trend is strong.


You do not have to set the ADX to a 14-day timeframe. As the chart can be adapted to offer more or less in terms of the price range.


10 – Standard Deviation (SD)


The standard deviation is a calculation of dispersion. The tool made our list of the 10 best forex indicators largely because when used alongside other indicators. It can really help traders to make better-informed choices.


This particular technical analysis tool shines a light on the price volatility of the market. And we think you should include it in your trading strategy.


The mathematical formula of the SD will guide you on entering the market at the correct time – not to mention detecting trend reversals and establishing trade targets.


This forex indicator is simple enough for newbies. But powerful for all levels of skill nonetheless. The standard deviation is also a useful tool for better managing your risk/reward.


Please find below a walkthrough of a standard deviation calculation:


Search the ‘mean closing price’ for the period you are looking at – for example, 20-periods. Examine the deviation for every period – this is the closing value minus the average price. Search for the square for every deviation – then add those squared deviations. Divide the number of deviations by the obtained sum. Next, work out the SD as a square root of the value obtained from step 4.


As we said, this indicator calculates how wildly prices have strayed from the average. In terms of timeframe settings, many people opt for the default 20-period setting – sitting between extremes.


With that said, having a forex indicator giving out too many signals can just complicate matters. And thus affect the gains you are able to make.


How to Learn the Best Forex Indicators.


If you are feeling a little overwhelmed by the information offered in our best forex indicators guide so far, not to worry.


For as many technical analysis tools there are available to help forex traders, there are hundreds for beginners too. They will help you learn how to use forex indicators effectively.


We have listed below some inspiration, covering some ways you can educate yourself on the best forex indicators.


Try Online Courses.


There is an online course on just about any subject these days. Forex indicators are no different.


You can either try an online course specifically for forex indicators or by performing a simple internet search. Crucially, you will find many courses aimed at learning technical analysis in general.


This can help you avoid making the same mistakes as most beginners and diving in with your eyes closed.


Here at Learn 2 Trade, we offer a wide variety of forex courses, including the ultimate trading indicators course – jam-packed with useful information.


Utilize a Demo Account.


Another option when it comes to honing in on your skills on forex indicators is to utilize free demo accounts.


For those unaware, most online forex brokers offer clients a free demo account, packed with paper funds.


Each demo account mimics real-world market conditions. And you are able to practice your technical analysis skills until your heart’s content. The best part is, you do not have to risk any of your capital.


When the time comes and you feel ready to start trading forex with real money, you can usually switch to a ‘live account’ very easily.


By which point, you will likely have a much deeper understanding of how to use the best forex indicators to your advantage – as well as having a clear advantage when making trading choices.


Read Educational Books.


We all learn differently. People who fall into the ‘kinesthetic’ category, meaning they learn better by ‘doing’, would likely prefer to use a demo account.


However, if you are a linguistic learner, you will more than likely prefer to learn the best forex indicators by reading a book. There are hundreds of forex trading books available at your fingertips.


Whether you prefer to read a traditional paper book, digital, or audiobook – there should be a book that tickles your fancy.


To give you a helping hand we have listed some of the best books we found, all of which cover forex indicators and such:


Technical Analysis Using Multiple Timeframes – by Brian Shannon. Bollinger on Bollinger Bands – by John Bollinger. Technical Analysis of the Financial Markets – by John Murphy. Forex For Beginners – by Anna Coulling. Getting Started in Technical Analysis – by Jack Schwager. Japanese Candlestick Charting Techniques – by Steve Nison. Encyclopedia of Chart Patterns – by Thomas Bulkowski. Technical Analysis Explained – by Martin Pring.


As you can see, our best forex indicators guide found that not only are there a plethora of forex trading books aimed at beginners. But you can easily find very specific technical analysis based reads.


Best Forex Indicators 2022: Final Thoughts.


In this guide, we have covered the cream of the crop when it comes to forex indicators. Each tool will make a fine addition to any trading strategy.


Anyone who regularly utilizes forex indicators will tell you that technical analysis can take time to get to grips with. However, once you get the hang of it, the information gained is invaluable.


If you are just starting out in the world of trading and are not sure where to begin in learning the best forex indicators, there is help all around you.


Check with your online broker to see if you can access a free demo account. As this can be a good way to get to grips with indicators – in market conditions mirroring real life.


If you are a linguistic learner, you can find heaps of educational material online – including books, and our Learn 2 Trade forex courses which are invaluable for newbies. You can also check out our free forex signals group which is considered to be the best forex signals telegram group on the web. This enables you to learn the ropes from the comfort of your own home.


FAQs.


Can I practice using forex indicators for free?


Yes. If your trading platform of choice offers demo accounts to clients, you can trade forex with paper money and practice on the best forex indicators for free.


What is the best forex indicator for spotting trends?


Moving Averages is one of the most popular choices for forex trend traders. Others include the MACD, and the Relative Strength Index (RSI),


Can I get rich using forex indicators?


There is no black and white answer. Whilst forex indicators cannot make you money per se - learning the best forex indicators can certainly improve your chances of being successful in making the right trading decisions.


Can I do a course from home to learn the best forex indicators?


Yes, you certainly can. There are heaps of online courses for beginners. Here at Learn 2 Trade, we have many forex courses to choose from - so you can learn from the comfort of your own home.


What is the best educational book about forex indicators?


There are heaps of educational books about forex indicators. Although not specifically about indicators, two of the best books about technical analysis in forex trading are 'Technical Analysis of the Financial Markets - by John Murphy' and 'Technical Analysis Explained - by Martin Pring'


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Comércio forex Passo Fundo

Mercado de câmbio: o que é, como funciona e conceitos básicos.


O mercado de câmbio é um ambiente global onde ocorre a comercialização de moedas estrangeiras. É uma das principais formas de aplicar em ativos ligados a exterior e ter resultados positivos.


Como mercado internacional aquecido, a variação no valor de uma moeda estrangeira devido a diversas influências pode ser uma oportunidade para ter lucratividade. Nesse sentido, definir estratégias e entender melhor o mercado cambial é fundamental.


Você sabe o que é e como funciona o mercado de câmbio ? Se pretende investir nesse mercado ou outra operação relacionada com o câmbio é essencial conhecer tudo sobre o assunto. Se tem dúvidas está lugar certo! Confira neste post tudo sobre o mercado de câmbio!


O que é o mercado de câmbio?


Mercado de câmbio é um ambiente onde são negociadas moedas entre países, basicamente um comércio monetário global. Os agentes econômicos se referenciam em regras cambiais para vendedores e compradores que realizam a troca das moedas, chamadas de divisas.


Muitas operações são realizadas no mercado cambial, como pagamentos e recebimentos em moeda estrangeira, especulações, participação em processos e investimentos.


O mercado de câmbio é composto por dois segmentos:


Primário: entradas e saídas de modas estrangeiras feitas por importadores, exportadores e turistas. Secundário: acontece por meio de bancos autorizados pelo Banco Central para operar com o câmbio.


Como ele funciona?


As operações no mercado cambial acontecem em pares, ou seja, quando é decidido comprar uma moeda é necessário entregar outra. O funcionamento do mercado acontece durante 24 horas, 5 dias por semana.


Dessa forma, compreende quase todos os fusos horários, começa no domingo, quando as operações asiáticas são iniciadas e fecha na sexta-feira, junto com o encerramento do mercado dos Estados Unidos.


Como uma moeda é base e a outra contada para as negociações, possibilita as flutuações de câmbio . Uma característica do funcionamento do mercado de câmbio é que as operações acontecem de forma descentralizada e eletrônica, sendo que as partes negociam diretamente apenas com intermediação de instituições financeiras.


Participam do mercado, os chamados Traders , com funções distintas, que são:


Qual o papel das instituições reguladoras nesse mercado?


O Banco Central do Brasil regulamenta a compra e venda de moedas estrangeiras no país. Portanto, de certa forma, qualquer negociação envolvendo dinheiro internacional que não passe pelo Banco Central é considerada ilegal.


O Banco Central também é responsável pela política cambial que está em vigor, com poderes para alterar e definir o valor de uma moeda estrangeira. No meio internacional a política cambial é integrada pelo Banco de Compensações Internacionais, que conta com a presença de mais de 60 bancos centrais.


Geralmente o mercado adota taxas cambiais flutuantes, de acordo com a política estabelecida, interferindo pontualmente quando necessário.


Quais operações podem ser realizadas?


A troca de moedas é a operação básica do mercado de câmbio, que é feita por um agente autorizado pelo Banco Central do Brasil. As demais operações realizadas no mercado são as seguintes:


Transferências, pagamentos e recebimentos com cartões internacionais; Transferências financeiras internacionais; Compra e venda de moedas estrangeiras; Investimentos em moedas estrangeiras.


De acordo com o Banco Central, as operações podem ser feitas por pessoa física e jurídica . Entretanto, é exigido que uma das partes sejam autorizadas pelo Banco Central para atuar dentro da legalidade.


Operações FOREX.


Um dos mercados com maior volume de negociações, o Foreign Exchange Market – FOREX é um mercado descentralizado e bastante especulativo. Nele, investidores de todo o mundo comercializam moedas estrangeiras de forma eletrônica.


Muitas corretoras internacionais oferecem investimentos no FOREX, porém, no Brasil ainda não existem instituições financeiras autorizadas pelo Banco Central para atuar nesse mercado.


O que é a taxa cambial?


A taxa cambial é um fator relevante e muito acompanhado por todos que desejam investir, comprar ou vender uma moeda estrangeira. De forma simples, a taxa de câmbio é o valor de uma moeda estrangeira em relação à moeda nacional.


Dependendo da política cambial do Banco Central de cada país, a taxa de câmbio pode ser flutuante, híbrida ou fixa. O Banco Central do Brasil adotou a taxa cambial flutuante, isso significa que os valores da moeda são definidos pela lei da oferta e procura, de forma livre.


A taxa cambial existe em duas maneiras :


Taxa cambial direta.


A taxa direta acontece quando é apresentado valores da moeda estrangeira para uma unidade da moeda nacional. Por exemplo, R$ 1,00 equivale exatamente USD 0,25. Também é chamada de incerto.


Taxa cambial indireta.


A taxa cambial indireta, ou ao certo, acontece quando é apresentado a taxa em valores da moeda nacional para uma unidade da moeda estrangeira, por exemplo, 1 USD equivale a 1 real BRL.


O que é e quais os tipos de regime cambial?


Determinado com base na política cambial, o regime de câmbio consiste na forma em que os valores de uma moeda estrangeira são estabelecidos, em relação à moeda nacional. É um fator que regula a taxa de câmbio.


São 3 tipos de regime cambial:


Câmbio fixo.


Câmbio fixo é quando há fixação da taxa cambial, ou seja, determinado de forma exata e inalterada o preço de uma moeda em relação a outra. Nessa situação, o governo é responsável por indicar a cotação da moeda nacional para compra ou venda da moeda estrangeira.


Câmbio híbrido ou atrelado.


É um regime cambial que oscila entre o fixo e o flutuante sendo que a taxa sofre alterações diárias, determinadas pelo governo. Manter o regime híbrido só é possível com intervenção do Banco Central.


Câmbio flutuante.


É um regime sem controle sistemático do governo onde as operações de compra e venda das moedas estrangeiras são realizadas de acordo com a oferta e procura do mercado, com taxas que variam seguindo essa lei.


O mercado cambial é reconhecido como um dos mais instáveis para investidores. Por esse motivo, qualquer pessoa que deseja comprar ou vender moedas estrangeiras deve ficar atento, principalmente se o objetivo for fazer investimentos.


Para investir com segurança é essencial ter um planejamento estratégico específico . De acordo com o passo a passo abaixo:


Identifique o seu perfil de investidor; Considere o fundo cambial; Sempre opere no mercado futuro; Garanta que tudo esteja dentro da legislação.


Outro fator fundamental é contar com formas eficientes e econômicas para fazer as transações internacionais. Por ser um serviço inevitável para quem deseja fazer atividades que envolvem moedas estrangeiras, contar com taxas justas é muito importante para otimizar os recursos e o seu planejamento.


Além disso, é preciso utilizar serviços que são credenciados pelo Banco Central do Brasil para ter segurança e preservar seu patrimônio. Assim, garantir que suas operações sejam eficientes.


Investir na variação cambial pode ser uma oportunidade para ter bons rendimentos, para tanto, é imprescindível estar bem informado para acertar nas decisões. Se deseja saber mais leia sobre como investir em fundos cambiais com a valorização do dólar.


De acordo com o contexto deste artigo, o mercado de câmbio é um ambiente que sempre vai influenciar em alguma atividade que deseja fazer. Portanto, conhecer e acompanhar o comportamento é essencial para aproveitar melhor as oportunidades, seja para investir, comprar ou vender uma moeda estrangeira.


Gostou do post? Se você deseja completar os seus conhecimentos, não perca tempo! Leia agora mesmo sobre como atrelar investimento ao câmbio e fique ainda mais bem informado!


Resumindo.


O que é o mercado cambial?


É um ambiente onde são negociadas moedas entre países, basicamente um comércio monetário global O mercado de câmbio é composto por dois segmentos: Primário: entradas e saídas de modas estrangeiras feitas por importadores, exportadores e turistas; Secundário: acontece por meio de bancos autorizados pelo Banco Central para operar com o câmbio.


Quais operações são realizadas?


transferências, pagamentos e recebimentos com cartões internacionais; transferências financeiras internacionais; compra e venda de moedas estrangeiras; investimentos em moedas estrangeiras.

Best forex indicator 6

Best Forex Indicator Ever – Pipbreaker.


Pipbreaker is very well known among the people involved in Forex Trading. Pipbreaker is a highly precise signal generator which, unlike other indicators, does not produce signals with unmatching accuracy and thereby enables the customers to realize returns almost every time they invest. Thus making it one among the Best Forex Indicator available on the market.


The Best Forex Indicator.


Many indicators floods the Forex market and most of them works only based on a particular logic. It may be Moving Average, Relative Strength Index (RSI), Stochastic Oscillator, etc.


Pipbreaker is unique as it blends many logic’s into one and generates a much precise signal. Due to the hard and continuous work put into it by our Wetalktrade team, Pipbreaker becomes the most reliable and highly effective indicator.


Reduce your losses.


Due to its highly advanced operating capability, the signals generated by the Pipbreaker have an amazing hit-ratio and works out almost every time. Though a trader can not gain profit, each and every time he/she trades, Pipbreaker increases your probability of earning.


Also, it keeps you as far away as possible from losses. The Pipbreaker keeps you in a safer zone, making you less prone to losses. The Pipbreaker is designed in such a way that even if a particular signal results in loss to the trader, the upcoming signal will balance and overcome the loss.


Be immune to market upsets.


The Forex market is highly vulnerable to international political and financial environment. From the Annual Report of any international bank to the eruption of any deadly virus, anything can affect the Forex market and may create an undesirable change in the currency rates.


In such cases, every indicator fails, but not the Pipbreaker. The Pipbreaker handles such situations with an amazing speed and starts generating signals accordingly. This helps you to stay ahead of all other traders, in all situations.


Trade any market for any duration.


The Pipbreaker is suitable for any kind of trader and trading duration. Being a long term trader or a scalper doesn’t matter as the Pipbreaker works well with all types of trades.


Pipbreaker not only suits for the Forex Market, it also supports trading in Gold, Silver and many other kinds of Stock Markets. This makes Pipbreaker, a unique solution for all your trading requirements and one of the best Forex indicator ever.


Join the elite group.


The Pipbreaker is a very unique product and its number of Licenses is restricted to be well under thousand in order to provide a distinctive edge to our customers.


More new products are yet to come and the top priority goes to our Pipbreaker users. Now, it’s your turn to experience a whole new level of trading by using the Best Forex Indicator ever on the market. Check out its performance in the recent days.

Best forex indicator 5

Best Forex Indicator – Giving The Edge Back To Traders.


In order to gauge how the market is performing and analysing the data, traders use forex indicators. The best forex indicators give a detailed forex market report for effective trading strategies and higher returns. It is a way to examine the forex market performance through various data; it could be historical data, present data including prices of currency pairs, the volume of trade and market performance.


Thus, helping traders to predict the price changes and other factors with these indicators. The patterns could be studied, and what patterns repeat are also emphasised more for a benefit.


The best forex indicators incorporate a list of indicators that aid traders in the best possible ways. A trader can never go wrong if the indicators are suitable with all other factors in mind. However, this takes years of experience to reach such a professional position.


What is the Forex Market?


The forex market is the foreign exchange market that operates for 24 hours and is the most liquid. The accessibility and high convertibility of currencies make it the highest traded market online. Foreign exchange markets trade in foreign currencies that are exchanged internationally at an exchange rate. Investors trade in various currency pairs to make a high profit.


The market is a decentralised market which means it does not have a centralised place of working. It is an electronic system connected through a network of computers. Therefore, traders can invest any time they want and from anywhere around the world. A globally traded currency market with high reach and trading options for investors.


It basically has some major currencies that traders mainly prefer, including EUR/USD, GBP/USD, USD/JPY, USD/CAD, USD/AUD and USD/CHF etc.


What are the Forex Indicators?


The forex indicators are used in the trade of forex currencies to examine whether the investment decision is right or not. A helpful tool for investors as it aids them with the analysis of the financial markets. Traders use the best forex indicator for market analysis in depth and predict the market fluctuations.


The best forex indicators take into account all the key aspects of the market, including the historical data, present price changes, other factors and fundamental areas for getting a clear idea about the future change. Thus, based on these, investors predict the forex market movements.


Indicators even display patterns and charts that are useful for the study of the market. With the pattern formed and lines drawn of the market movements, traders are able to analyse their market position. Moreover, the support and resistance levels aid traders to know the entry and exit points of the trade.


Like support and resistance level, there are many other best forex indicators that support traders in the forex market. Some of the indicators are moving average, pivot point, trend indicator and many more.


Best Forex Indicator.


There are various indicators in the forex market; however, these are divided into four categories, namely, the trend indicator, momentum indicator, volatility indicator and volume indicator. The categories incorporate the major indicators of the forex market.


Here, we have discussed the best forex indicator for better use by investors in the forex trade. So, let’s quickly understand the indicators:


Relative Strength Index (RSI)


A relative strength index is a technical tool that helps traders analyse the price changes in the forex market over time. It is classified as an oscillator that is best for analysing price movements. RSI uses a mathematical formula that calculates the currency values and their overbought and oversold positions in the market.


RSI oscillators help traders to illustrate the hidden and visible divergence signals of the forex trade. Indicating the momentum of the prices, RSI is useful for traders of markets to make significant technical decisions.


If the RSI reading in the pattern formed is above 70, then it is an overbought trend, which means that the forex security trader wants to purchase is overvalued, and the trader should wait for it to come down. Thus, traders should look for a reversal of the trend to buy the security.


On the other hand, if the RSI reading is below 30, it is an oversold trend where traders should go long. Here, traders can wait for reversal and then sell the security in the market.


Moving Average (MA)


Moving average is also a technical indicator that checks on the average price of the security traded. In forex trading, the currency pair moving average is calculated via a formula to take any further decision. The indicator is pretty useful and used mostly by every trader.


Moving average recognises the price trend removing the extra noise of short term trade. It is a helpful indicator that shows the current price with emerging trends of the market. They work via the use of data and mathematical formulas to get the price changes in a specific time period.


The most frequent timeframes used in moving averages are 50, 100, and 200 days. The indicator is preferred largely due to its simplicity and uses over the years. In addition, traders can rely on moving averages indicators for analysing the price fluctuations. Thus, the best forex indicator for currency trading.


Moving Average Convergence Divergence (MACD)


The best forex indicator list incorporates yet another indicator named moving average convergence divergence (MACD). This moving average differs from the first one; however, it includes the first one in the calculation part. Here, the momentum of the price change is studied by comparing the two moving averages.


The indicator suggests traders with potential opportunities of the forex market around the support and resistance levels.


The divergence in the moving average shows that the averages are shifting away from one another, whereas convergence shows their coming together and moving closer to each other.


MACD has three important components:


Signal Line is the representative of the shift in the price and works as a trigger to help traders analyse the buying and selling signals. It is a line of 9 periods MA of MACD. MACD Line calculates the gap between two moving averages. It is derived by deducting the 26 period MA from the value of 12 periods MA. A histogram is the line of MACD that calculates the difference between signal line and MACD.


Bollinger Bands.


The indicator is named after its developer John Bollinger, who was an author and financial analyst. Bollinger Bands are the best forex indicator that illustrates the price range of the security. It uses statistical charts and prices of the forex currency pairs to analyse the volatility of the market.


It can be studied on the charts when the bands are closer, the uncertainty of the market is low, and when they range away from one another, the market is highly volatile. Bollinger bands, through their bands, show traders trading levels and even help traders to speculate in the market for the long term.


When the price of the security is above the Bollinger bands, then it is the indicator of an overbought situation, whereas when the opposite happens, the price is below the band, then it signals an oversold situation of the market.


The forex market tools are valuable for study or price range and factors contributing to the change. Bollinger Bands is also one of the best forex indicators.


Ichimoku Cloud.


Ichimoku cloud is the best forex indicator as it studies both historical and current price changes. Thus, provide traders with high probability trading opportunities. In addition, the indicator is used to analyse the market and know the support and resistance level to take advantage of the reversal or breakout in the forex market.


Moreover, Ichimoku cloud also analyses the price momentum to aid traders in the decision-making process. Thus, a wide range of information is furnished in one indicator, with support and resistance of both present and future trade. Along with the trend direction and investment that would be fruitful in the near future.


There are several components of the Ichimoku cloud that are used for the analysis of the forex market. These are:


Senkou Span A Senkou Span B Tenkan- sen Kijun-sen Chikou Span.


Stochastic Oscillator.


A momentum indicator, the stochastic oscillator, is the best forex indicator available for trade. It is a technical indicator that studies the price changes and compares closing and range prices over a timeframe. It is said to be best due to its features of strong accuracy and simplicity in the forex trade.


The indicator signals traders that the security is overbought or oversold in the market, and traders should be careful while investing in currencies. It follows the indicators that when the price is above 80, it is an overbought situation, and below 20, the market is at an oversold situation.


Fibonacci Retracement.


It is a unique trading strategy and indicator as it does not relate to price or momentum but to the pullbacks in the market. Pullbacks refer to the temporary stops in the trend of a security. So, traders look for pullbacks to identify trading opportunities and buy currencies. It is a drawing tool that aids traders with the partial reversals of the forex trade.


The indicator is used for various price actions using the retracement levels. The levels measure the number in percentage to know about the market flip between the two points. There are shallow and deep retracements, shallow ranges from 23.6% to 38.2%, indicating a strong trend and fast move. In contrast, the deep retracement is between 61.8 % to 78.6 %. Thus, the deep retracement indicator shows a strong market trend and lower velocity compared to shallow indicators.


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Best forex indicator 4

The 10 Best Forex Indicators For Currency Traders.


Achieving success in the foreign exchange (forex) marketplace can be challenging. Nonetheless, traders from around the globe, both experienced and novice, attempt to do exactly that on a daily basis. Given the above-average failure rate of new entrants to the market, one has to wonder how long-run profitability may be attained via forex trading.


Among the many ways that forex participants approach the market is through the application of technical analysis. By definition, technical analysis is the study of past and present price action for the accurate prediction of future market behaviour. The premier tools for the practice of technical analysis are known as indicators.


Indicators come in all shapes and sizes, and each helps the user place evolving price action into a manageable context. While there are many indicators to choose from, all are used to either identify market state or recognise potential trading opportunities. Through the integration of indicators, one can develop a collection of powerful forex trading strategies.


One of the key benefits to utilising technical indicators is the freedom and flexibility afforded to the trader. Indicators are versatile in that they may be implemented in isolation or within the structure of a broader strategic framework. In each instance, their proper use promotes disciplined and consistent trading in live forex conditions.


TradingView Pro.


As an FXCM account holder you could get TradingView Pro FREE for 1 year saving over $100 .


Selecting The Best Indicators For Active Forex Trading.


Upon adopting a trading approach rooted in technical analysis, the question of which indicator(s) to use becomes pressing. In order to find suitable candidates, it is important to first determine one's available resources, trading aptitude and goals. Through conducting a detailed personal inventory, the best forex indicators for the job will begin to emerge. At the end of the day, your ideal trading indicators will complement both your assets and objectives.


In practice, technical indicators may be applied to price action in a variety of ways. Two of the most common methodologies are oscillators and support and resistance levels. Each has a specific set of functions and benefits for the active forex trader:


Oscillator.


An oscillator is an indicator that gravitates between two levels on a price chart. Oscillators are designed to show when a security is overbought or oversold. They are frequently used as a barometer to measure pricing momentum as it relates to trend extension, exhaustion and market reversal.


Oscillators are strategically valuable as they aid the trader in determining market state, as well as providing forex signals for trade in the global currency markets. Examples of popular momentum oscillators are the relative strength index (RSI) and the MACD indicator.


Support And Resistance.


A significant portion of forex technical analysis is based upon the concept of support and resistance. Support and resistance levels are distinct areas that restrict price action. A support level is a point on the pricing chart that price does not freely fall beneath. Conversely, a resistance level is a point on the pricing chart that price does not freely drive above.


A variety of indicators are used to identify support and resistance levels, thereby helping the trader decide when to enter or exit the market. Several of the most popular are Fibonacci retracements/extensions, pivot points and the simple moving average (SMA).


Ultimately, the best forex indicators are user-friendly and intuitive. These two attributes assist in the crafting of informed trading decisions and add strategic value to the comprehensive trading plan.


Top Forex Oscillators.


Oscillators are powerful technical indicators that feature an array of applications. Whether you are trend following, trading reversals, or implementing a reversion-to-the-mean strategy, oscillators can be a valuable addition to the forex trader's toolbelt. Below are five time-tested offerings that may be found in the public domain.


1. Stochastics.


Developed in the late 1950s by market technician George Lane, the Stochastic oscillator is designed to identify when a security is overbought or oversold. To do so, it compares a security's periodic closing price to its price range for a specific period of time.


The driving force behind the Stochastic Oscillator, also referred to simply as Stochastics, are the probabilities involved with random distribution. Typically symbolized by %K, it is essentially a comparison of evolving price action to a relative mean value. It's derived by the following formula:


%K = ((Closing Price - Range Low) / (Range High - Range Low)) * 100.


Stochastics are exceedingly popular among forex traders as they offer a means of quickly ascertaining whether a currency pair is overbought or oversold. They are plotted as two lines on a pricing chart: the current or slow stochastic (%K) and the fast stochastic (%D), which is a specified periodic moving average. Values are interpreted on a 0-100 scale, with 0 indicating oversold conditions and 100 overbought. In the event that a product's price movement approaches either extreme, a trade setup may come to pass. As price approaches 0, buy signals may be in the offing; as price rallies toward 100, sell signals may come into view.


In addition to the 0-100 scale, the potential divergence/convergence, or crossover of the %K and %D, also render varying degrees of importance. These occurrences may be interpreted as signals of a pending shift in price action. The versatility of Stochastics make it a go-to methodology for many veteran and novice traders alike.


2. Relative Strength Index (RSI)


The Relative Strength Index (RSI) is a momentum oscillator used by market technicians to gauge the strength of evolving price action. Developed in the late 1970s by J. Welles Wilder Jr., RSI has become an exceedingly popular indicator among technical forex traders.


Average Gain : A gain is a positive change in periodic closing prices. To calculate the average gain, all periodic gains are added and then divided by the period itself (Total Gain / Period). Average Loss : A loss is a negative change in periodic closing prices. To calculate the average loss, all periodic losses are added and then divided by the period itself (Total Losses / Period). Relative Strength (RS) : Relative Strength is derived by dividing the average gain by the average loss (Average Gain / Average Loss).


Once RS is determined, the RSI calculation may then be completed:


RSI = 100 - [100/(1+RS)]


Similar to Stochastics, RSI evaluates price on a scale of 0-100. Its primary goal is to determine whether a market is overbought or oversold and if conditions are poised for an immediate change. As a general rule, the closer RSI gravitates toward 0, the more oversold a market may be. Conversely, values approaching 100 are viewed as overbought.


The RSI may be applied to any security on any time frame. Its effectiveness in identifying the exhaustion of market trends and possible reversals makes the RSI a favoured indicator among forex traders.


3. Moving Average Convergence Divergence (MACD)


Invented by Gerald Appel in the late 1970s, the Moving Average Convergence Divergence (MACD) is favoured by forex traders. Like other momentum oscillators, it can be a challenge to derive manually in live-market conditions. Fortunately for active forex traders, modern software platforms offer automated functionality on any time frame.


Essentially, the MACD is a comparison of two exponential moving averages (EMA), typically with periods of 26 and 12. Through observing whether these EMAs are tightening, widening or crossing over, technicians are able to make judgements on the future course of price action. In this way, market trends, reversals or rotations may be projected.


The calculation for MACD is as follows:


MACD = [(26 Period EMA) - (12 Period EMA)]


MACD is applied as a chart overlay in conjunction with a Signal Line. The Signal Line is a periodic EMA of the MACD itself; frequently a nine-period EMA. Histograms are also employed to express the degree of variance between the MACD and Signal Line.


Forex traders are fond of the MACD because of its usability. It is a visual indicator, with divergence, convergence and crossovers being easily recognised. Due to this attribute, the MACD is easily integrated into any trading system with other forex tools and analytical devices.


4. Commodity Channel Index (CCI)


The Commodity Channel Index (CCI) was created and promoted by mathematician Donald Lambert in the early 1980s. It was initially developed for trading commodities futures contracts, but it has been adapted to the forex, CFD and equities markets.


Like other oscillators, the CCI places market behaviour into context by comparing the current price to a baseline value. In the case of the CCI, the moving average serves as a basis for evaluation.


Given the following building blocks, the CCI may be constructed:


Typical Price: ⅓(High + Low + Close) MA: Moving Average, N periods of typical prices Divisor: .015 MD: Mean Deviation, N periods of typical prices.


The CCI formula is as follows:


CCI = [(Typical Price - (MA)) / (.015 * MD)]


In contrast to several of the other oscillators, CCI is viewed with respect to a channel existing between +100 and -100. Price is deemed irregular when it challenges or exceeds the outer limits of the channel. This is unique from the standard 0-100 scale as the boundaries are not finite. The CCI moves with the market, suggesting that price has a tendency of returning to an adapting mean value.


While the difference between CCI and other momentum oscillators appears negligible, the channel concept dictates unique strategic decisions. Nonetheless, CCI is an easy-to-use indicator and the core concepts of overbought or oversold still apply.


5. Parabolic SAR.


The Parabolic Stop And Reverse, also known as Parabolic SAR or PSAR, is used to identify trend direction as well as potential reversal points. Designed by J. Welles Wilder Jr., the Parabolic SAR is an unconventional oscillator. Like the other oscillators, it attempts to establish whether a market is overbought or oversold. However, it does not employ any sort of standardised scale; simply a series of strategically placed "dots."


The PSAR is constructed by periodically placing a dot above or below a prevailing trend on the pricing chart. For an uptrend, dots are placed below price; for downtrends, dots are placed above. The product is a visual representation of the prevailing trend, pullbacks and potential reversal points. Accordingly, the PSAR is most commonly applied as an overlay on open high low close (OHLC) and Japanese candlestick charts.


Forex traders often integrate the PSAR into trend following and reversal strategies. While choppy and range-bound markets can pose challenges to its effectiveness, the visual simplicity boosts the PSAR's appeal to many forex traders.


Support And Resistance, Custom Indicators.


A variety of technical indicators are used to predict where specific support and resistance levels may exist. Upon doing so, areas of support and resistance are frequently combined with other trading indicators to build a robust, comprehensive trading system.


6. Bollinger Bands.


Introduced to the world of finance in 1983 by John Bollinger, Bollinger Bands (BBs) are a technical indicator designed to measure a security's pricing volatility. Although not intended for defining market entry/exit points in isolation of other market factors, BBs do provide a detailed look at the volatility of a security.


Bollinger Bands feature three distinct parts: an upper band, midpoint and lower band. Each is represented by a line on the pricing chart, tracing the outer constraints and center of price action. The visual result is a flowing channel with a rigid midpoint. BBs may be applied to OHLC and Japanese candlestick charts on any time frame.


At their core, BBs exist as a set of moving averages that take into account a defined standard deviation. The BB calculations are mathematically involved and typically completed automatically via the forex trading platform. To customise a BB study, you may modify period, standard deviation and type of moving average.


As a general rule, a wide distance between outer bands signals high volatility. Conversely, tight bands suggest that price action is becoming compressed in the vicinity of a periodic average price.


Even though Bollinger Bands are trademarked, they are public domain trading indicators. Forex traders frequently implement BBs as a supplemental indicator because they excel in discerning market state.


7. Pivot Points.


Pivot points, or simply pivots, establish areas of support and resistance by examining the periodic highs, lows, and closing values of a security. They are a powerful tool for quantifying normal trading ranges, market direction and abnormal price action as it occurs.


In practice, there are a multitude of ways to calculate pivots. One common method begins with taking the simple average of a periodic high, low and closing value, then applying it to a periodic trading range. The pivot value is calculated via the following formula:


Pivot = (High + Low + Close) / 3.


Upon the pivot being derived, it is then used in developing four levels of support and resistance:


Resistance1 = (Pivot * 2) - Low Resistance2 = Pivot + (High - Low) Support1 = (Pivot * 2) - High Support2 = Pivot - (High - Low)


Pivot points are used in a variety of ways, primarily to indicate the presence of a trending or range bound market. A general rule is that when price is above resistance levels, a bullish trend is present; if below support levels, a bearish trend is present. In the event price falls between support and resistance, tight or range bound conditions are present. Regardless of market state, pivot points may be used to generate buy and sell signals.


Pivots are a straightforward means of quickly establishing a set of support and resistance levels. Forex market participants regularly utilise them in breakout, trend and rotational trading strategies.


8. Average True Range (ATR)


Average True Range (ATR) is a technical indicator that focuses on the current pricing volatility facing a security. Akin to Bollinger Bands, ATR places ongoing pricing fluctuations into context by scrutinising periodic trading ranges.


The primary element of the ATR indicator is range, which is the distance between a periodic high and low of a security. It is computed as follows:


Range = Periodic High - Periodic Low.


Current period high to low Previous close to current high Previous close to current low.


Upon TR being determined, the ATR can be calculated. The process is mathematically involved; at its core, it is an exponential moving average of select TR values. To keep the ATR current, the exponential moving average is used in favour of a simple moving average. Fortunately for active forex traders, the ATR indicator may be calculated automatically by the software trading platform.


The primary purpose of ATR is to identify market volatility. It is not concerned with the direction of price action, only its momentum. High ATR readings indicate an active market, while low ATRs suggest consolidation. While ATRs do not specifically establish support and resistance levels, they are frequently used to confirm the validity of such price points.


9. Donchian Channels.


The development of Donchian Channels is credited to fund manager Richard Donchian in the late 1940s. Like Bollinger Bands and the ATR, Donchian Channels aim to quantify market volatility through establishing the upper and lower extremes of price action.


Due to their usability, Donchian Channels are a favoured indicator among forex traders. They're typically applied automatically via a forex trading platform, but Donchian Channels may be easily computed manually. The key element of the indicator is period. Once an ideal period is decided upon, the calculation is simple. The following is a set of Donchian Channels for an 18-period duration:


Upper Band = 18 period high Lower Band = 18 period low Middle Band = (18 period high + 18 period low) / 2.


Through focusing on the market behaviour evident between a periodic high and low, Donchian Channels are able to quickly identify normal and abnormal price action. Further, the upper/lower bands may be viewed as support and resistance levels because they have previously inhibited price.


The appeal of Donchian Channels is simplicity. The indicator is easy to decipher visually on OHLC, line, or candlestick charts and the calculation is intuitive. These two attributes make Donchian Channels an attractive indicator for trend, reversal and breakout traders.


10. Custom Indicators.


One of the biggest benefits of trading forex in the modern era is the ability to personalise the market experience. Advancing technology has brought the creation of custom charts, indicators and strategies online to the retail trader.


For droves of forex participants, building custom indicators is a preferred means of technical trading. A custom indicator is conceptualised and crafted by the individual trader. Aside from personal preference, it is subject to no predefined constraints and may be applied in any manner deemed appropriate.


Given the robust functionality of modern forex trading platforms such as Trading Station or MetaTrader 4 (MT4), traders have the freedom to construct technical indicators based on nearly any criteria. The only thing limiting the custom forex indicator and associated forex trading strategies is the trader's imagination.


The Bottom Line.


At first, technical trading can seem abstract and intimidating. However, through due diligence, the study of price action and application of forex trading indicators can become second nature.


Whether you're a trend, reversal or breakout trader, there are many forex indicators to choose from in the public and private domains. To sum them up, the best ones are easy to use and will add value to a comprehensive trading strategy.


Last Updated on 18/10/2021.

Best forex indicator 3

8 Proven Best Forex Indicators Tested and Reviewed.


Today, I am introducing traders to the best Forex indicators in the market. These are indicators that are proven to work in MT4, MT5, Tradingview and find themselves on many top 10 lists. In this case, we are drawing your attention to 8 proven indicators that will help you grow your trading account and win more trades.


For many traders, Forex indicators play a significant role in their daily trading routine. The purpose of putting together this page is to explain the benefits and drawbacks of many different indicators that I’ve been reviewing and using over the years .


Depending on your personal trading approach, and stylistic tendencies, there are hundreds of different indicators available all with the express intent of providing better ways to analyze the markets. After perusing our list of both free and paid options , you will know without a shadow of a doubt which are the best MT4 indicators for every type of trader.


Best Forex Indicators in 2022.


5. PipFinite Trend Pro 6. Forex Gump 7. APA Zones 8.NewGen Trades.


1. RSI (Relative Strength Index)


The relative strength index is a free Forex indicator you can use in MT4, MT5 and tradingview. This is currently my favorite indicator , because it provides effective entries.


The RSI is a momentum indicator that determines whether an asset is overbought or oversold. It works for Forex, stocks, cryptos, anything. The RSI indicator uses three main numbers, 70, 50 and 30. If the price goes above 70, the asset is overbought (a good time to sell), if the price goes below 30 the asset is oversold (good time to buy).


It’s not perfect, but works incredibly well with my secret strategy in this video here :


Price: FREE Client feedback: Used by thousands of traders since 1978 Trading performance: Depends on the strategy Trading methodology: Any strategy.


2. Free Money Management.


Without money management you won’t win trades.


This is why I believe this Free Money Management indicator is the Best Forex Indicator available. This indicator will help you trade the right lot size, plot your tp & sl before placing trades and much more.


To learn where to download the indicator, how to install the indicator, and how to use it properly, simply watch this video here:


Price: FREE Client feedback: Excellent Trading performance: Not applicable (doesn’t provide signals) Trading methodology: Any strategy.


To download the free indicator, go here.


3. Moving Average Exponential & MACD.


The Moving Average Exponential (EMA) and Moving Average Convergence Divergence (MACD) are two free Forex indicators that when combined can provide great trade entry opportunities.


The EMA tracks the price of an investment over time, and the MACD is a momentum indicator that shows the relationship between multiple moving averages of a currencies’ price.


To see how I use these two free indicators to win trades on a consistent basis, watch this video here:


Price: FREE Client feedback: Perfect Trading performance: Performs very well with the right strategy Trading methodology: Can be used in thousands of different ways.


Whether paid or free, new or old, every indicator has it’s place and moving averages are always going to be the baseline for the majority of trading strategies.


MQL5 continues to be one of the most extensive resources in the Forex market. Their exclusive product marketplace gives traders access to many different product offerings including over 28 pages of Forex indicators. 8 of those pages are completely free indicators, but the quality is substantially lower when dealing with unpaid services. The main benefit of the market, is the diversity of options available, and the fact that every day traders can analyze hundreds of different products in order to find one that suits their personal trading style and interests. The reason that this is ranked number one, is because each system comes with client reviews, comments and free demos.


While there are positives, the MQL5 market isn’t perfect. The flip side of having so many options, is the fact that it can be very difficult to sort through each of the products and decide which Forex indicator is best and most viable for your current trading approach. It’s also worth noting that the majority of the coders involved in this marketplace are not coding professionals per se. Obviously, it takes a fair bit of knowledge in order to code an indicator, but most of the coders that are providing these systems do not work for a company, and thus there is no real guarantee that they will continue to support the product they are providing. Most of these coders are highly skilled amateurs, and sole proprietors of their trading products.


This market is highly effective, because it gives traders the opportunity to seek out and download Forex indicators without taking any risk or requiring any initial investment.


Price: Varies, $30-100 average Client feedback: Good feedback system Trading performance: Mostly unverified Trading methodology: Many strategies.


5. PipFinite Trend Pro.


PipFinite Trend Pro could essentially be categorized under the MQL5 umbrella, because it is indeed sold in the MQL5 market, but it deserves its own ranking as it is the most popular Forex indicator out of the thousands on their website. First released on January 15, 2022, this Forex indicator uses support and resistance levels alongside a strict set of rules that trigger buy and sell signals accordingly. This type of indicator does the majority of the work for the trader, because it provides the price, the direction of the trade, and the stoploss/takeprofit levels to set. It also includes a success rate metric, which gives traders an idea as to how effective a trading signal is likely to be, before the trade is placed. The indicator is aesthetically pleasing, and sends trade alerts via sound alerts within meta-trader 4, push notifications and email.


While the PipFinite Trend Pro sits in the number 2 position, that doesn’t mean it is without its warts. A couple months after completing our review, it came to our attention that the popularity of the indicator, and the overall rating on the MQL5 marketplace, is actually misleading. The vendor requests that his clients provide a 5 star review of this service in exchange for a free scanning indicator. Clients are expected to post a positive review, which skews the results and keeps this in the top 10 mt4 indicators list at MQL5. After the client provides proof that they posted the positive review, then the vendor will give them access to a free Forex indicator. The most recent comments here on Forex Robot Nation seem to suggest that the system is overrated, and not worth the $100 price tag, which is inflated by false positive reviews.


Sitting at number 2 currently, it’s unsure how long this indicator will remain in one of the top spots available given what we’ve found out.


Price: $99 Client feedback: Mostly 5 stars (but inflated by free indicator exchange) Trading performance: A video, and screenshots, nothing verified or long term Trading methodology: Support and resistance, but lacking detailed insight.


6. Forex Gump.


Forex Gump is another Forex indicator sold in the MQL5 marketplace. The main difference between this product, and most of the others reviewed in this section, is that the vendors actually provide the strategy in both indicator and Forex robot form. This is a very helpful approach, because it gives the vendor the opportunity to easily provide the community with verified trading results, although much like every other vendor in this market, they fail to do so. The general trading strategy isn’t elaborated on in much detail, but they do tell us that the indicator is based on a high frequency trading scalping approach. The system also includes multiple filters so that traders can adjust the indicator period, but there isn’t much explanation as to how these should be modified in the overall standing of the software.


The one aspect that sets this Forex indicator apart from the rest, is the fact that they provide an automated robot with the indicator. The more we analyze this program, the more we see that this is a requirement. They mentioned that they utilize high-frequency trading as the backbone of their strategy, which essentially makes the Forex indicator useless, because humans can’t keep up with a high-frequency trading approach. There are just too many trades being opened and closed simultaneously, for a trader to keep up with them all. Thus, the Forex robot that’s offered as part of this package, is actually the most important element.


Coming in at the 3rd spot, we feel that the positives still outweigh the negatives, but this isn’t a glowing endorsement by any means. The service belongs in the best MT4 indicators category, but ratings change over time as the markets shift.


Price: $47 Client feedback: Under populated, not enough to draw any conclusions on Trading performance: Screenshots, nothing to write home about Trading methodology: High frequency trading.


7. APA Zones.


APA Zones is both a Forex indicator and educational service that wants to help introduce and strengthen the knowledge of their clients on price action trading. Their program includes training videos, indicators, templates and the community Skype room to discuss trading strategy. The indicator is offered by Gabriel brand, a sole proprietor located in Long Beach California. While it’s quite difficult to make your way through the website, and figure out where you should start, it is quite apparent that the developer does have a fair bit of knowledge about price action trading.


While most indicators we review provide buy and sell signals, the purpose of Gabriel’s indicator is to “help you maintain consistent analysis of supply and demand and take repeatable trade entry setups.” The packages are organized based on trading experience, so traders with different levels of experience are recommended to sign up with different indicators / products on the website. There isn’t much in terms of trading results, or performance reports, but the service does come across as a legitimate one.


While the majority of the review is positive, this product is still somewhat confusing, and not very popular among the overall Forex community, which is why it is currently ranked number 4.


Price: $45-$158/month Client feedback: Three 5 star reviews all from 2022 (activity concern) Trading performance: No verified trading results Trading methodology: Price action (knowledgeable trader)


8. NewGen Trades.


NewGen Trades is a Forex indicator described as so simple “that even an 8-year-old kid could use it.” Unlike the other indicators reviewed up to this point, this is not sold on the MQL5 marketplace. Instead, it is developed by a company that claims to have 15 years of experience in the trading industry. They believe that traders should sign up with their service because they have over 500 happy clients worldwide, and boast a 100% customer satisfaction rate. None of these claims are substantiated in any real way.


There really isn’t much positive to say about the NewGen Trades indicator. The vendor provides no information about their trading strategy, and the same could be said of their lack of trading results. Since the vendor gives us almost nothing to go on, we have to rely on the client feedback, which there has been quite a bit of it in our review. While we are happy to see that the support team did follow up with some of the comments, they were never able to provide any verified trading results. The most recent comment is from a client that claims that the software never worked as advertised, which forced them to eventually ask for a refund.


Sitting in the 5th spot, it’s quickly becoming apparent that even some of the best Forex indicators to choose from are flawed in major ways.


Price: $80 Client feedback: Mostly negative Trading performance: Screenshots, no verified results Trading methodology: No strategy provided.


Contender: Currensys.


Currensys is an older indicator package, that isn’t discussed too frequently, but because it’s built to work with NinjaTrader, eSignal, and MCFX/Multichart platforms, I felt it was important to included on this list. Every single Forex indicator covered up until this point has been built exclusively for MT4 or MT5, but if you don’t use that platform, then maybe you would be interested in this Forex indicator, even if it is much older.


This indicator collection that provides traders with a signal-based trading method is owned and operated by MVP Holdings, located at 30 Broad Street, Suite 1450 New York, NY 10004. They feel that their Forex indicator service stands the test of time because they use multiple signal systems simultaneously in order to actively monitor the current market conditions. For detailed information about the strategy, the vendor provides a handful of videos on their website.


One of the strangest aspects of the service, is the fact that the vendor is charging over $1000 for it, when the rest of the Forex indicator market is essentially $100 or lower. There’s nothing overly impressive, that suggests to our team that this Forex indicator should be much more expensive than its competitors.


Price: $1095 Client feedback: Very old, most reviews from 2012/2013 Trading performance: None Trading methodology: Bollinger reversal, and bollinger breakout.


Contender: PipBreaker.


PipBreaker is a highly marketed Forex indicator developed by the WeTalkTrade team. It’s found in multiple best MT4 indicators lists, so we find it’s important to The vendors promising 90-93% success rate with the signals generated from their indicator and advertises it as “the most efficient way to trade manually.” The developers of this indicator are located at 2711 Centerville Road, Suite 400, Wilmington, DE 19808. While the sales page is aesthetically pleasing, the vendor provides very little information about their product. The website is mostly promises, flashy images, and a high price tag of nearly $250.


Our review has attracted 11 comments from traders utilizing the software, and the only experiences shared so far have been negative. The majority of the clients claim that the win rate is not realistic, and that the indicator provides too many false signals to be trusted.


Sitting at the 7th spot currently, this indicator doesn’t provide much substance, and hasn’t been able to win over the Forex Robot Nation readers.


Price: $249.99 Client feedback: Not performing as expected Trading performance: No verified results Trading methodology: Not disclosed by the vendor.


Honorable Mention: EFC Indicator.


EFC Indicator is a Forex trading product that promises to find effective opportunities for its clients in less than 60 seconds. Developed by the trading strategy guides group, they make aggressive claims about their product, saying that it can consistently make over $1000 per week. The indicator is built to automatically detect reversal patterns and take advantage of a 1 to 3 risk reward ratio in order to grow accounts steadily.


The client feedback for the indicator is in the middle of the road. One of the clients claim that they attempted to utilize the indicator for binary options, but was unsuccessful. Yet, when he contacted the developer, they refunded him with no questions asked, which is certainly a good sign. Another commenter echoed his sentiments, which makes me believe that the vendor is a showing some positive signs.


There are no real trading results to go on, as the vendor only provides a couple of different screenshots, of how the system works.


Price: $99 Client feedback: Average Trading performance: No verified results Trading methodology: Reversal based.


Procedural Analysis.


In the analysis today, we will be monitoring and reviewing four factors that will lead to a ever-shifting, live ranking system of the proven Forex indicators. These 4 elements will help in the final rankings of the indicators, and give you an insightful checklist to sort through:


Price Client feedback Trading performance Trading methodology.


If the service is effective in achieving a high rating in these categories, then it will rank well. It’s worth noting that many of the services we’ve reviewed do not excel in the categories we’ve chosen , and thus some of the indicators that made this list are flawed.


The only issue with the paid Forex indicator market is that vendors fail to provide any verified trading results, or performance reports. They rely on screen shots, and small sample sizes, which is why we prefer the best rated Forex robots, as they are more reliable in 2022.


What are Forex Indicators?


In order to get the most out of this page, you first need to understand the different types of Forex indicators available. For the most part, commercial Forex indicators are MT4 or MT5 based systems that analyze the market, and trigger trade alerts when the conditions or rules of the system is met. Trade alerts are pop up boxes in MT4 that direct traders on specific trades to place, generally including the entry price, take profit and stop loss. These are the most popular products that are promoted in the indicator marketplace.


Then, there are Forex indicators that paint on your charts to help you spot patterns better, see market movements, and utilize different data points like the relative strength index. Overall, these types of indicators are more for advanced traders that are looking for ways to bolster their manual trading approach. Many of these indicators are readily available for free within MT4 or MT5, but they aren’t the main focus of this review today.


Instead, our analysis is more directed at the best Forex indicators that provide trade alerts, and give traders direct trading advice.


The way we look at indicators is different in 2022, then it was just a few years ago. Our expectations are much higher, and we feel that the commercial vendors need to be held to a higher standard of accountability and transparency. What was once considered a contender for the best Forex indicator title, is no longer relevant in today’s market conditions.


How do Forex Indicators Work?


The Forex indicator is often viewed as a gateway between manual trading and automated trading, because while the trader doesn’t have to do any chart analysis, they still have to place the trade.


Commercial Forex expert advisors are very simple to utilize. Traders either attach them to their MT4 or MT5 charts, set the timeframe, the pairs they want to trade, then wait for the trading conditions to be met. Once the condition or rule is met, the trade alert (signal) will pop up on the chart with the instructions. Trade alerts are frequently often sent to the platform, and to your mobile device via SMS or your email depending on if you want to trade these signals on the go.


Forex Indicator Table.


As we continue to scour the market, we are always finding more Forex indicators to review, and as we do, they will be added to this table. The table is nearing 20 reviews, and there are many more to come. Hopefully as we improve our ability to analyze these systems, the vendors improve upon the services they are offering.


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Conclusion.


It’s clear that the best Forex indicators aren’t the first choice of the Forex Robot Nation team. Indicators almost feel antiquated, in that they serve a purpose, but have been over taken by more successful methods of trading the markets, like the best Forex robots tested or best Forex signal providers.


While indicators certainly still have a role, and play a very useful role for manual traders. Many of the commercial systems, like the ones listed in this review are lacking in the most important areas. These vendors need to find better ways to prove their systems are viable, with the use of third party statement sharing providers, and sustained trading records.


Thanks for reading our Forex indicator breakdown, and look forward to us expanding this into the top 10 mt4 indicators very soon. Please comment or leave suggestions of other indicators you would like us to add to the list.

Best forex indicator 2

The Best Forex Indicators For Serious Traders.


The best Forex indicator that tells you when to buy & sell so your trading account can spit out money like an ATM (day after day).


Unfortunately, the single best Forex trading strategy and indicator don’t exist.


If it does, won’t we all be millionaires trading off a beach in Hawaii?


Even though there is no such thing as a best Forex indicator, there are indicators that work in different market conditions.


And if used correctly, it helps increase your winning rate and profit potential.


So here’s what you’ll learn today:


How to use Moving Average indicator and increase your winning rate How to use Stochastic and “hunt” low risk and high reward trading setups How to use Average True Range and set a proper trading stop loss so you don’t get “stop hunted” How to use MACD indicator and pinpoint market reversals and breakouts accurately Which is the best Forex session indicator for short-term traders How to combine different Forex indicators and improve your trading results.


Are you excited?


Then let’s begin!


The best Forex indicator: The magic of Moving Averages.


The moving average is an indicator that “smooth out” past prices on your charts.


It’s easily one of the simplest and one of the best indicators for Forex.


Don’t waste your time deciding whether you should use a simple, exponential, weighted, or linear moving average. Or whether you should use a short term or long term moving average.


It doesn’t matter — because there’s no such thing as the best moving average.


Instead, learn how moving average can fit your trading plan and help you make better trading decisions.


And here are 2 things it can help you with:


How to use the moving average to trade with the trend How to use the moving average to ride massive trends.


How to use moving average and increase your winning rate.


I’m sure you’ve heard this a gazillion time…


“The trend is your friend.”


But the question is, how do you define the trend?


Well, there are many ways to do it. But my personal approach is to use the moving average (MA) to define the long-term trend.


Here’s how to do it:


If the price is above the 200MA, then look to go long. And if the price is below the 200MA, then look to short.


Now you’re probably wondering:


“Is the 200MA the best?”


Here’s the thing… there’s no best moving average out there. I use the 200MA because it’s a summary of what the price has done over the last 200 candles.


But, if you want to define a shorter or medium-term trend, then adjust the parameter accordingly.


How to use the moving average to ride massive trends and improve your risk to reward.


Here’s the thing:


If you want to ride big trends, you cannot have a profit target because it puts a limit on your profit potential.


So, what should you do?


You set a trailing stop loss.


This means as the market moves in your favor, you adjust your stop loss in the direction of the trend.


And one way to do this is to use the moving average indicator to set your trailing stop loss.


If you want to trail your stop loss using the 50MA, then you only exit your trade if the market closes beyond it.


Here’s what I mean…


If you want to ride a short-term trend, you can trail with a short-term moving average like the 20MA. Or, if you want to ride a long-term trend, you can trail with the 200MA.


The best Forex indicator: The simplicity of Stochastic.


The Stochastic is a momentum indicator created by George Lane.


Here’s what he said…


“Stochastics measures the momentum of price. If you visualize a rocket going up in the air – before it can turn down, it must slow down. Momentum always changes direction before price.” — George Lane.


In other words, the Stochastic indicator tracks the momentum of price. It identifies when the price is gaining or losing momentum.


But here’s the thing:


Most traders are using Stochastic indicator the wrong way. They go long when the price is oversold, and go short when the price is overbought.


If you ask me, this is one of the fastest ways to lose your money.


You’re probably wondering:


“So how should I use the Stochastic indicator?”


Well, here’s my secret…


How to use Stochastic and find low risk and high reward trading setups.


Trade in the direction of the long-term uptrend Wait for the price to reach oversold levels on Stochastic Wait for an entry trigger to get long.


And vice versa for a downtrend.


The best Forex indicator: The awesomeness of the Average True Range.


The Average True Range (ATR) is an indicator that measures the volatility of the market.


When the ATR has a low value, it means the market has low volatility and vice versa.


So the question is:


How do you use the ATR indicator in your trading?


Well, here are 2 techniques you can consider:


How to use the ATR indicator to set a proper stop loss you don’t get stopped out unnecessarily How to use the ATR indicator to find high probability breakout trades.


How to use the ATR indicator to set a proper stop loss you don’t get stopped out unnecessarily.


One of the worst ways to place your stop loss is just below the lows of Support, or above the highs of Resistance.


It gets stop hunted easily because the market tends to trade beyond these levels by a few pips before reversing its direction.


A solution is to use the ATR indicator and give you stop loss a buffer away from Support/Resistance.


Here’s how to do it if you have a short setup:


Determine the ATR value Add the ATR above the highs of Resistance.


Here’s an example:


Now, if you want to give your trade more “room to breathe” you can multiply the ATR value by 2, 3, or 4.


How to use the ATR indicator to find high probability breakout trades.


The market moves from low volatility to high volatility and back to low volatility.


Here’s what I mean:


If you want to find high probability breakout trades, be alert when the market is in low volatility period — there’s a good chance it’ll break out.


Here’s how to do it:


Wait for the ATR value to approach the lows Check if the market is in a range If the price breaks out of the range, you can expect momentum to continue.


And if you want to trade the breakout, you can enter your trade when the price closes beyond the range.


You can start to see why this is one of the best indicators for Forex, right?


MACD Indicator Secrets.


The Moving Average Convergence Divergence (MACD) indicator is a momentum and Trend Following indicator.


It has 3-parts to it: MACD line, Signal line, and MACD Histogram.


For this article, we’ll focus on the MACD histogram and here are 2 powerful techniques you can use…


1. How to use MACD Histogram and identify momentum reversal.


Here’s how it works…


Wait for the price to come into Market Structure (like SR, Trendline, etc.) MACD Histogram shows a strong momentum (you want to see a high peak/trough) Wait for price rejection before trading in the opposite direction.


Here’s an example:


2.MACD Histogram Squeeze: How to identify explosive breakouts about to occur.


Explosive breakouts usually occur when there’s low volatility in the market — you’ll notice the range of the candles gets small and “tight”.


But if you’re a new trader, this might not be easy to spot.


So, that’s when the MACD Histogram can help you.


The price comes into key Market Structure (like SR, Trendline, etc.)


The MACD Histogram looks almost “flat” without any visible peak/trough.


Enter the breakout when the price breaks the Market Structure.


Here are a few examples:


This is powerful stuff, right?


The best Forex session indicator.


If you trade forex, then you know there are 3 main sessions to it — Asian, European, and New York.


To make things worse, you have daylight savings which shift back the European and New York Session by an hour (during a certain period of the year).


And if you’re a short-term trader, you don’t want to miss the period when the European and New York sessions overlap one another as the market tends to be the most volatile.


Now you’re probably wondering:


“How do I keep track of the different time zones and trading sessions?”


Well, I’ve got good news for you because there’s an indicator called “Forex Sessions” by Chris Moody (available for free on TradingView).


Here’s how to add the indicator to your charts:


Select the indicator tab Search the indicator called “Forex Session” by Chris Moody Add the indicator to your charts.


Here are the settings I used:


Then you should see something like this:


Here’s what it means…


Beige background – The Asian session.


Blue background – The European session.


White background – The New York session.


Beige solid line – Opening hour of the Asian session.


Blue solid line – Opening hour of the European session.


Dark blue solid line – Opening hour of New York session.


Now if you want to learn how to use this indicator, then go watch this training video below…


Now you’re probably wondering:


“What use is the Forex Session indicator?”


That’s a good question.


And here are 2 ways it can help your trading:


You understand your currency pair intimately and can identify “hidden” opportunities You can backtest intraday trading strategies with ease.


You understand your currency pair intimately and can identify “hidden” opportunities.


If you spend a lot of time watching a market, you’ll start understanding the intricacies of it.


How it reacts before a news release How it reacts after a news release How it behaves during the Asian session How it behaves during the European session How it behaves during the New York session What is the average daily range And etc.


This is a goldmine because you can identify “hidden” opportunities that aren’t privy to other traders.


And with the Forex Session indicator, it makes things easier for you because it highlights the respective trading session on the charts.


Here’s a simplified example…


Over the last 5 trading sessions, USD/CAD is the most volatile during the European session.


So if you’re a day trader, then you want to find trading opportunities near the start of European session to take advantage of the “big move”.


You’ll realize that different markets “behave” differently and it’s your job to know your markets intimately.


You can backtest discretionary intraday trading strategies with ease.


The Forex Session indicator makes it easy for traders to manually backtest intraday trading strategies.


Here’s what I mean:


Previously, if you want to backtest a “London Breakout” strategy, you must scroll your charts to the London open and manually record your results.


If you’ve done it before, you know it’s time-consuming to find the exact location on the chart where London opens.


You’ve got to manually move your mouse to each candle and check if you’ve got the correct candle for London open.


But the good news is…


You can just switch on the Forex Session indicator and find the blue vertical line on your chart because that’s the candle of London open.


Imagine how much time you’ll save without ever “hunting” for the London open candle ever again.


Now, let’s move on…


How to combine different Forex indicators the correct way.


The purpose of trading indicators is to summarize the historical chart data so you can better interpret the “behavior” of the markets.


And if you want to take things a step further, you can combine different Forex indicators and get better trading results.


But if your charts look like this:


You’re obviously doing it wrong.


Here are 2 rules to follow when combining different forex indicators…


Every trading indicator on your charts must have a purpose You only need one indicator for each purpose.


1. Every trading indicator on your charts must have a purpose.


You’re probably wondering:


“What do you mean by purpose?”


Well, it means what the trading indicator is used for.


Is it used to define a trend? Identify the market’s volatility? Define an area of value? Act as an entry trigger? Set a stop loss?


2. You only need one indicator for each purpose.


Let’s say you want to define the trend using a moving average indicator — that’s fine.


But, you shouldn’t throw in ADX, Bollinger Bands, channels, and etc. to define the trend.


Because you’ve got your moving average and that’s all you need, period.


So, remove all the unnecessary indicators on your chart and leave those that serve a purpose.


Does it make sense?


Frequently asked questions.


#1: Is the 200MA less important when focusing on shorter-term trends?


The 200MA is useful to understand the longer-term trend. So if you’re only focusing on the shorter-term trends, then the 200MA would be less important.


#2: I was trading the 5-minute, 15-minute and 1-hour timeframes but my stops were hitting frequently at 1ATR before moving in my favour. Does price action work on lower timeframes too? Or should I only trade in higher timeframes like 4-hour or the daily?


If your stops keep getting hit often, then you might consider widening your stops with 2ATR or 3ATR.


Yes, price action can work on the lower timeframe if there’s sufficient liquidity in the markets.


But I can’t really say if you should or shouldn’t trade the 4-hour and the daily timeframes, because it depends on your goals from trading, whether you want to be a day trader or position trader, etc.


Conclusion.


There is no such thing as the best Forex trading strategy and indicator — it’s a fantasy.


However, certain indicators work best in different market conditions.


For example, you’ve learned:


How to use the Moving Average indicator to improve your winning rate How to use the Stochastic indicator to find high probability trading setups How to use the Average True Range indicator to set a proper stop so you don’t get stopped out unnecessarily Which is the best Forex session indicator for short-term traders How to combine different Forex trading indicators and improve your trading results.


Which is the best forex indicator that helps your trading?


Leave a comment below and let me know your thoughts.


Now you’re probably wondering:


“What use is the Forex Session indicator?”


That’s a good question.


And here are 2 ways it can help your trading:


You understand your currency pair intimately and can identify “hidden” opportunities You can backtest intraday trading strategies with ease.


You understand your currency pair intimately and can identify “hidden” opportunities.


If you spend a lot of time watching a market, you’ll start understanding the intricacies of it.


How it reacts before a news release How it reacts after a news release How it behaves during the Asian session How it behaves during the European session How it behaves during the New York session What is the average daily range And etc.


This is a goldmine because you can identify “hidden” opportunities that aren’t privy to other traders.


And with the Forex Session indicator, it makes things easier for you because it highlights the respective trading session on the charts.


Here’s a simplified example…


Over the last 5 trading sessions, USD/CAD is the most volatile during the European session.


So if you’re a day trader, then you want to find trading opportunities near the start of European session to take advantage of the “big move”.


You’ll realize that different markets “behave” differently and it’s your job to know your markets intimately.


You can backtest discretionary intraday trading strategies with ease.


The Forex Session indicator makes it easy for traders to manually backtest intraday trading strategies.


Here’s what I mean:


Previously, if you want to backtest a “London Breakout” strategy, you must scroll your charts to the London open and manually record your results.


If you’ve done it before, you know it’s time-consuming to find the exact location on the chart where London opens.


You’ve got to manually move your mouse to each candle and check if you’ve got the correct candle for London open.


But the good news is…


You can just switch on the Forex Session indicator and find the blue vertical line on your chart because that’s the candle of London open.


Imagine how much time you’ll save without ever “hunting” for the London open candle ever again.


Now, let’s move on…


How to combine different Forex indicators the correct way.


The purpose of trading indicators is to summarize the historical chart data so you can better interpret the “behavior” of the markets.


And if you want to take things a step further, you can combine different Forex indicators and get better trading results.


But if your charts look like this:


You’re obviously doing it wrong.


Here are 2 rules to follow when combining different forex indicators…


Every trading indicator on your charts must have a purpose You only need one indicator for each purpose.


1. Every trading indicator on your charts must have a purpose.


You’re probably wondering:


“What do you mean by purpose?”


Well, it means what the trading indicator is used for.


Is it used to define a trend? Identify the market’s volatility? Define an area of value? Act as an entry trigger? Set a stop loss?


2. You only need one indicator for each purpose.


Let’s say you want to define the trend using a moving average indicator — that’s fine.


But, you shouldn’t throw in ADX, Bollinger Bands, channels, and etc. to define the trend.


Because you’ve got your moving average and that’s all you need, period.


So, remove all the unnecessary indicators on your chart and leave those that serve a purpose.


Does it make sense?


Frequently asked questions.


#1: Is the 200MA less important when focusing on shorter-term trends?


The 200MA is useful to understand the longer-term trend. So if you’re only focusing on the shorter-term trends, then the 200MA would be less important.


#2: I was trading the 5-minute, 15-minute and 1-hour timeframes but my stops were hitting frequently at 1ATR before moving in my favour. Does price action work on lower timeframes too? Or should I only trade in higher timeframes like 4-hour or the daily?


If your stops keep getting hit often, then you might consider widening your stops with 2ATR or 3ATR.


Yes, price action can work on the lower timeframe if there’s sufficient liquidity in the markets.


But I can’t really say if you should or shouldn’t trade the 4-hour and the daily timeframes, because it depends on your goals from trading, whether you want to be a day trader or position trader, etc.


Conclusion.


There is no such thing as the best Forex indicator — it’s a fantasy.


However, certain indicators work best in different market conditions.


For example, you’ve learned:


How to use the Moving Average indicator to improve your winning rate How to use the Stochastic indicator to find high probability trading setups How to use the Average True Range indicator to set a proper stop so you don’t get stopped out unnecessarily Which is the best Forex session indicator for short-term traders How to combine different Forex trading indicators and improve your trading results.


Which is the best forex indicator that helps your trading?


Leave a comment below and let me know your thoughts.


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angela says:


Hi, I use pivots, 20,50,100 and 200EMAs, RSI Fibonacci retracements and extensions and Bollinger bands. You told me once, you don’t use bollingers; I’d like to know why? Angela.


Rayner says:


Hey Angela There are countless indicators out there and I can’t possibly use them all in my trading. For me, moving average, atr, and the price is enough.


Kevin Marra says:


Ray, Your comments are incredibly insightful. If i focus on shorter term Swing Trades, and my RSI and Stochastics have been adjusted for shorter periods, would you use a shorter term MA as your trend guide?? ex. My avg holding period is 1 -5 days. Should i use a 50 dma as my “big directional guide , and use the 20d as a sell signal? I know you value the 200d as the key direction so i think the question is —would you NOT take the 200 into account when focused on much shorter time horizons? Thank you, Kevin.


Rayner says:


Hi Kevin I would use the 200MA the same even in the lower timeframe. The 200ma on the 5mins timeframe is essentially 16.67ma on the 1-hour timeframe. The concept is what matters. If you want to trade short-term trend for a given timeframe, use a shorter term MA. The moving average should not be dictated by the timeframe you’re trading, but the type of trend, or trades, you want to execute.


nayan says:


excellent article rayner.thanks.


Rayner says:


you’re welcome Nayan!


Theo says:


Rayner, this post was extremely informative. Thank you. I’m feeling Chris’s Forex Session indicator. Is there a similar one to Chris’s out there for MT4? I also use MA to determine short to long term trends and for Stop Losses too. Keep up the great work you are doing. Much appreciated.


Rayner says:


Hi Theo I don’t know of a similar one on MT4. cheers.


Chris says:


Your notes on the indicators such as moving average, atr, etc., are really very, very good. Recently, not more than 1 month ago, I found another use of indicators by Joe Dinapoli. He used displaced moving average, and fibonacci. I am still in the process of learning and digestion. Perhaps you have heard of his name and if possible, explain some of the use of his indicators. Thank you for your time, and generosity.


Rayner says:


Hey Chris I’ve not heard of it before.


Georgie says:


You’re a Godsend Rayner !


Rayner says:


Thanks bud!


R.Velmu says:


Hi Rayner, thanks for your continues support and advice/tips. Some time ago you advice that “let the price come to you” before and ENTRY, as for me the best method that suits this statement of yours is “Support/Resistance. I’m using this method for sometime already and it really works for me. …….but we need to be very patience if we use this method. Thanks again Rayner. R.Velmu.


Rayner says:


Glad to hear it’s working for you, cheers.


SMA1fx says:


SMA1fx…hai rayner i use only SMA1 shift -26 its same as chikou span ichimoku & line chart and here i can see SBR ,RBS , hi & lo, from sma1 and a candle stick . i mark previous sharp pointed of sma1 hi lo and breakout level (rbs,sbr) there i just set my pending order and let the market do its job.so far most of my friend happy with this because easy to spot SnR level.and the way i find exact level of hi lo and break out level using OHLC. there is some more of it ill share next time.


SMA1fx says:


i forgot… SMA1 ( simple moving average)


Rayner says:


Joseph Lee says:


Hi Rayner, Your weekly tips have been very useful.I personally use EMA 10, 30. and MACD. My trigger signals are very simple. When the trend is up, I long when the candlesticks are above both EMA lines and the faster MACD line cuts the slower one from the bottom. When the trend is down, I just do the exact opposite.


Rayner says:


Thank you for sharing, Joseph!


Julie says:


Hi Rayner, Atm I trade stocks not forex and I use ema, macd histogram, rsi, adx and stochastic. I use atr for stops. I’m enjoying your articles and videos, the tactics are very adaptable to stocks also.


Rayner says:


I’m glad to hear that, Julie!


Ron Ram says:


Hi Rayner, You are really godsend. Your articles are really an eye opener which makes us more confident in our trades. Looks like you are all out to make all of us a successful traders. Hats off to you. God Bless.


Rayner says:


Cheers Ron!


Svend says:


Hi Rayner, thanks for your continued brilliant support and clear advice/tips. Much appreciated.


Rayner says:


The pleasure is mine, Svend!


Patrick says:


hi rayner, thanks a lot for all the post you keep giving us and your explanations, it goes a long way to enrich we traders, i tried out the ATR you taught on setting the stop loss but i dont get to understand the values i see so that i can use it to set the stop loss. a little help?


Rayner says:


What about it?


Nikolas says:


Good job . Thank you Rayner .


Rayner says:


You’re welcome!


Lior says:


Hi Raynar I want to ask why do you trade long when the market is above the SMA , ? I know that if the market is away from the SMA it ” wants” to touch it and to rebound it , so you soould be short to the SMA.?


GMan says:


When you mention moving average in the beginning of your article are you using simple or exponential. Thanks for an awesome website and insight.


Rayner says:


Hey GMan The example used is EMA.


Vico says:


Rayner, if i use SMA 200 to see bullish or bearish trend, and stochastic 20,3,3 to spot my entry price when oversold in uptrend and oversold in downtrend to entry, what do you think?


Rayner says:


I think you need more details in your trading plan like specific entries, exits, trade management, and etc.


Fxautotrades says:


Thanks for Sharing…Its very helpful..


Rayner says:


You’re welcome!


Graeme Arber says:


I trade the daily chart as a trend trader. On the chart I use the 200 EMA, Fractals with lines ( shows me the high / lows, where to enter and where to enter add on trades along the trend, it’s a constant with no repaints, who cares if I miss a few pips entering a little later at least I’m sure ) also look for engulfing candle and use the OsMa(off chart) for confirmation. I have added a wave entry alert indicator which will repaint but does indicate the approx area of trend change. If I had to choose just three, they would be, the 200 ema indicator, the fractals with lines (save drawing by hand) indicator and a Fibonacci indicator, anything else are just confirmation indicators.


buknoi says:


moving average, stochastic and price simplifies the already complicated forex ��


Rayner says:


Thanks for sharing your thoughts.


Onkar says:


Hey, For a day trader Which time frame should be used?


Rayner says:


Likely the 5 and 15mins timeframe.


VIJAY says:


Hi..I AM BIG FAN YOU.I AM USE EMA 200.100.50.20 AND SMOOTH RSI.&MACD.I AM LERNING PROCESS. PLS TELL ME HOW IS ENTRY POINT & EXIT POINT..I AM USE THIS SET UP IN INDIAN STOCK MARKETS..HELP ME.


Hernando says:


Thanks for this explanation. it is to write down in my concept that many we mix several indicators of tendency, Oscillators, etc, and we should use one of each group in order not to disagree in the signals that these give us, in my case according to my estartegia Swing I use mobile averages and a Macd for the divergences basically, I have learned to handle them although I still need a lot, because every day I learn more secrets of them and therefore my operation improves every day. It is clear that part of the support in my operative and very big is to learn to manage the market cylindricals and I have fallen in love with the Elliott Waves and their management, because before I supposedly put in a very well analyzed operation and when I realized it was fired Stop Loss, when analyzing why I realized that this cycle was ending and for that reason was out. because I only focused on a single time frame without looking at the macro. Rayner a question when it was possible for you to explain about the Elliott Waves and their cycles? Thank you very much and thank you for your teachings. Translated by Google.