If you want to develop a successful forex trading strategy, then you will certainly require the best forex indicator set comprising several effective indicators. Make use of them to accomplish more beneficial market timing with your foreign exchange signals. Here, we’ve highlighted some of the excellent forex technical indicators that you can blend to make higher profits in the market.
Moving Average is basically a forex indicator to indicate trends. There are several types of moving averages available, such as Simple Moving Average (SMA), Exponential Moving Average (EMA) and Weighted Moving Average (WMA). These MAs are widely used to evaluate the average price movement during a particular period of time. Traders can use moving averages to decide upon the direction, location and momentum of the price as well as its support or resistance levels. This way, they will be able to observe different trends and tendencies in the market.
Average Directional Index or ADX is a very useful forex indicator. It shows the existence or nonexistence of a trend. Make use of this indicator to know whether the trend is going to stay and get stronger or it is more or less certain to lose its positions. While using the ADX indicator, traders should make a horizontal line at the level of 20. All the ADX indications that stay below 20 suggest that there is no trend at all or the trend is very weak. On the other hand, when the indications go past 20, the trend has started to get stronger. When ADX exceeds 40-level, the trend is super strong.
Formulated by the renowned trading expert Welles Wilder, the Relative Strength Index or RSI is another <a href="http://www.adxindicator.org/">best forex indicator</a> to be used by traders. This momentum indicator makes a comparison of the average of up-moves and down-moves for a particular time period and conveys the index in a range of 0-100. If the RSI is more than or equal to 70, the trading instrument is regarded as overbought (a condition by which prices have gone up more than the market anticipations). In case the RSI is equal to 30 or less, then it is considered that the instrument might be oversold (a condition by which prices have come down more than the market anticipations).
Stochastic is a highly popular momentum forex indicator for market timing and almost all traders must be aware of it. It can be employed to suggest the strength or weakness of the momentum as well as to suggest if the market is overbought or oversold. This indicator is easy to use and highly effective.
As a volatility indicator, Bollinger Bands measure the volatility of the market and offer handy information related to the direction, continuation or interruption of the trend as well as periods of market consolidation. This best forex indicator comprises three bands, namely simple moving average, lower band and upper band.
So, combine all these aforesaid forex technical indicators to make huge profits with the best signals.
Choosing the Best Forex Indicator to Make Profitable Decisio