There are so many Forex indicator that available in Forex trading that we can choose. But it will be difficult to choose one or the best forex indicator from hundreds of Forex technical indicators. Having the best forex indicator is very important to build and to improve our trading strategy. Even though, choosing and using a Forex technical indicator is very subjective and depend on each Forex trader. In this article, I will share with you the best forex trading indicators in my opinion and I hope these indicators can help you to improve your trading skill and your trading accuracy. I think the best Forex indicators are :
1. MACD Moving average convergence divergence MACD is the best forex indicator for me because I think this indicator has some good features in it. You can use the MACD indicator to determine the market trend and to determine the reversal probability from Foreign exchange market.
The use of MACD indicator is depend on your trading style, you can make this indicator very sensitive or less sensitive. In sensitive mode you can get so many Forex trading signals but you also get so many false signals too. It is depend on your trading style.
2. RSI Relative strength index indicator RSI technical indicator become the most popular trading indicator that used by so many Forex traders. The RSI technical indicator showed between 0-100 or oscillate. RSI indicator overbought if the RSI trades above the 70 level or bigger, RSI indicator oversold if the RSI trades below the 30 level or lower.
3. Stochastic Forex indicator Usually this indicator shows the overbought and oversold area in 0-199% scale. In a bullish trend, close price concentrated in the lower period and in a bearish trend, close price concentrated in bigger period. Above indicators are what I felt are the best forex technical indicator for trading. It is dangerous if you only trade using one technical indicator. In my suggestion, you should use 2 or three forex technical indicator to gives the deeper analysis to get in or out of the market trading.
These Forex indicators are the most useful forex trading indicator that you should apply. The experienced traders and professional traders counted the different factors, good technical and fundamental before we start invest in Forex trading. If you want to join in to Forex trading world you should open an account first and start practice.
Tagged @ Forex Indicators