There are about 99 forex indicators available in most forex software provided by your forex broker. However if you are attempting to trade using all the 99 indicator, it is impossible for you to execute any trade as it is near to impossible for all the indicators to agree with each other. Therefore you need to know which are the few forex indicators you should use to lead you to successful execute any trade.
Just to share with you something I saw a few years ago, 200 EMA (Exponential Moving Average) is a forex indicator that is awarded the best and most reliable forex indicator by a forex magazine. Indeed, you can just add in 200 EMA indicator into your forex chart and you can see the trend immediately as a uptrend is dictated by your candles opening and closing above the 200 EMA and a downtrend can be dictated by your candles opening and closing below the 200 EMA.
Besides using the 200 EMA,I usually use it together with MACD, RSI, Bollinger Band as well as pivot point analysis to help me determine when I should execute a trade and when I should get out of a trade. The main problem with new traders lie in their inability to understand how to use the forex indicators together. Most of them are able to understand how individual indicator works but have no idea how to use the forex indicators together to improve their success rate.
Some forex indicators are leading indicators which can show you where the trend is going while some are lagging indicators which will show you where the trend is previously. Therefore you need to select and master a combination of them to help you execute your trade successfully at least 70% of the time.
Successful forex trader are usually able to use a combination of forex indicators to help them determine the entry point for their trade as well the exit point for their trade. Therefore you should dedicate some time to study how to use a combination of several forex indicators to make you become a successful trader.
In my next few posts, I will share with you how to use some of the indicators to your advantage.
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