Tuesday, April 24, 2012

Forex Indicator Top Pick – The Best Forex Indicator To Use

February 18, 2009 by  
Filed under Forex Indicator

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.

Other Related Posts:

  1. Forex Indicator – How To Trade Using Moving Averages
  2. Forex Indicator – Important Reversal Candlestick Patterns You Must Not Miss
  3. Forex Indicator – How To Use Moving Averages To Your Advantage
  4. Useful Forex Candlestick Indicator I am Using
  5. Forex Indicators – What Are The Best Forex Indicators?


2 Responses to “Forex Indicator Top Pick – The Best Forex Indicator To Use”
  1. Vipul says:

    the part you said about most people don’t know how to use the combination of right indicators to catch the trend properly is perfectly correct. So I was thinking if you would be kind enough to tell us a nice little strategy based on these indicators.
    would really appreciate it

    • Kelvin says:

      Hi Vipul

      I have written several post on different forex strategies and they are using these indicators. You can read them on this blog.

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