The most effective indicators for forex
The main tool with which technical analysis is carried out is the indicator; it is it that allows you to speed up this process.
The main thing is to find the most effective tool for these purposes, since you will have to choose among several thousand different scripts.
The task is quite difficult even for an experienced trader, and if you are just starting to trade Forex, it is not at all feasible.
What forex indicators can be called the most effective for technical market analysis?
Each trader has his own list of preferences, here are the indicators that I use:
Number one - Stochastic Oscillator
It just so happened that Stochastic became one of the first indicators with which I managed to earn something.
Its ease of use allows this tool to be used in almost any trading strategy; it can be used even with the default settings.
And the strategy itself is striking in its simplicity; you only need to track the location of the indicator and mark the intersection of lines.
The strategy for trading with Stochastic is described in detail in the article - http://time-forex.com/strategy/strategiy-stohastik
Well, another argument in favor is that this script is in the metatrader trading platform, and there is no reason to add it there.
Number two - VROC or Volume Rate of Change indicator
Changes in transaction volumes for a particular currency pair have always been one of the most convincing confirmations of the existing trend.
To measure this indicator, there are a lot of indicators - On Balance Volume or Volume, as well as their analogues from MetaTrader.
But the creators of VROC went even further; they made a script that measures the rate of change of this very volume.
That is, the more noticeable the growth of the indicator line, the faster the volume of transactions grows, which means there is every reason to assume that the existing trend in the market will continue.
It is difficult to guess where the trader’s terminal gets the data on volumes, but in most cases the script’s predictions come true.
Number three – Screen indicator three
The operation of this tool is described on our website in an article on the page - http://time-forex.com/indikators/tri-ekrana
It will appeal to those who like to trade using several assets, including me; it is, so to speak, a complex tool that combines the readings of four indicators for several currency pairs.
Surprisingly, it has nothing to do with the standard “Three Screens” strategy , but is an excellent assistant, since it summarizes the indicators of several indicators at once.
And the trader just has to wait until all four indicators show the same forecast for one of the currency pairs and open a deal.
Quite an interesting solution, surprising in its simplicity, and you can simultaneously install all the scripts used here on the charts, but it will not be so convenient, and therefore effective.
The above are the indicators that I use more often than others; in my opinion, they are quite effective when working on Forex, at least for me.