How to find the best forex indicators. Forex indicators Forex market indicators full description
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DESCRIPTION OF INDIACTORS USED IN THE TEXT
- FDM Entry Arrows with Alerts – an indicator that shows quotes on the chart best levels to open trading positions
- EMA Cross (SES) – an indicator displaying the intersection of two moving averages, the parameters of which the user can set independently
- WPRSI Signal is an indicator that displays the moments of breakdown on the asset chart at the price of dynamic support levels determined by the WPRS indicator.
- T3MA-ALARM is an arrow indicator that displays on the asset chart the moment the price crosses the moving average
Trend indicators and oscillators
- Forex Eye is an indicator whose logic is based on the work of several modified ZigZag indicators, thanks to which you can quite accurately determine the levels of quote reversals.
- Heiken Ashi is an indicator that works using a special algorithm for analyzing Japanese candlesticks, helping to obtain more accurate data on trend changes in quote movements.
- RSIOMA_vol. 3 – an indicator built on combining the logic of the RSI and MA indicators, well displays medium-term and short-term trends.
Cluster indicators
- CCFp is a cluster indicator that evaluates the strength of each currency from the list of available on the MT4 platform relative to other terminal currencies, which allows you to more accurately analyze the direction of asset quotes.
- CFP is a pulse version of the CCFp cluster indicator, which displays short-term trends in asset price changes.
Information indicators
- CandleTime is an information indicator showing the time remaining until the current quote candle closes.
- URDALA NEWS is an information indicator in the form of vertical lines on a chart that displays the release time of macroeconomic news and their name.
- ORDERINFO is an indicator showing the size of funds involved in trading, balance, equity and margin.
For intraday trading, modern traders use a lot of various indicators that make it possible to accurately determine the moment of entering the market. Such algorithms have different approaches to determining signals and can be intended for medium-term trading and so on.
Rating of the best Forex indicators for 2017 - 2018
"Laguerre" indicator
The “Laguerre” indicator is designed to minimize noise influences and monitor the emergence of a new trend. When creating the indicator, the developers used analysis of the spectral type of max entropy, used in geophysics.
According to a survey of traders, this indicator is an excellent tool for trend trading. The indicator owes its popularity to the fact that it has the ability to indicate in certain graphic periods much better than other standard type algorithms available in MetaTrader.
This indicator, with equal success:
- use on any timeframe,
- it is well suited for intraday trading,
- and also allows you to easily track the beginning and end of microtrends, which is perfect for swing trading.
The “Laguerre” indicator displays the trend line in a separate window and can be used both for individual trading systems and as confirmation signals.
Laguerre indicator - the optimal solution for a trader
“ScalperDream” indicator — 2nd place in the ranking of the best trading algorithms
Each trader, both for intraday trading and for any other, needs his own strategy. And each such strategy, in addition to filters, requires the presence of a main indicator that supplies input and output signals to the market.
According to a survey of traders, for scalping excellent option is the “ScalperDream” indicator, which is why it was included in the ranking of the best.
The main parameter of this algorithm is “PERIOD”. If you increase this value, the indicator slows down, which leads to a decrease in the number of signals, but their quality becomes better.
Entering the market occurs when the indicator changes color. If the color changes from red to green, then you should buy, and if, on the contrary, from green to red, then it is advisable to sell. taken from the alert.
In addition, positions must be closed when opposite signals appear.
If “ScalperDream” shows columns of the same size for a long time, this is a flat during which you should not open trades. If a position shows Profit, and “ScalperDream” displays 5 or more identical bars, then you should leave the market.
Details about the ScalperDream indicator
3rd place in the ranking of the best Forex indicators according to traders – “Eye”
For intraday trading, you can use both automatic and manual indicators. Just included in the rating of the best Forex indicators, it is one of those.
This indicator is somewhat similar to the well-known “ ” because it also connects local extrema with straight lines on the chart. The highs and lows themselves are indicated by large yellow eyes, with a blue or red dot in the center, for this reason the indicator was called “Eye”.
According to a survey of traders, using the Eye indicator for intraday trading is quite simple:
- We enter “Sell” when the dot in the eye is blue,
- and in “Buy” when it is red.
The indicator has a “Pivot” function, and it also has a huge number of settings that are clear in the names and have explanations.
A distinctive feature of this indicator– the presence of a function that saves old redrawn signals, so “Eye” can be used in automatic trading by integrating it into advisors.
Indicator “ADX CROSSING MA” - 4th place in the ranking of Forex indicators for 2018
The list of Forex indicator ratings continues with the “ADX CROSSING MA” algorithm, which is built on indices of average directional movement. This indicator is an analogue of “ ”, but according to a survey of traders, it has a simplified interface, which is built on signal points for entering the market.
The beauty of using this algorithm is that the indicator independently automatic mode interprets all ADX readings, indicating to traders when to sell or buy.
In other words, you no longer need to watch the indicator lines to make the right decision. Among other things, ACM is able to find the statistical average “ADX” values, which makes it possible to smooth out market noise and discover the best entry point.
Trading using the indicator is very simple:
- when a white dot appears below the opening price level of the candle – buy,
- If a red dot appears, we sell.
"Bollinger Squeeze v9" - 5th place in the ranking of the best indicators of 2017 - 2018
Why is this indicator so interesting for intraday trading? “Bollinger Squeeze v9” is a combination of the five most practical, well-known and popular indicators among traders:
- "Momentum"
- and the overbought/oversold indicator " ".
This indicator combination is most often used in practice today when trading on the foreign exchange market. That's why the developers created this wonderful copy.
The convenience of using the indicator, according to a survey of traders, is that it is possible to instantly switch between all five indicators using a single variable – “Trigger Type”.
It should be noted that using this variable, we will not fill the working terminal screen with all five windows, but will work with a single external indicator window. And this, you see, is very convenient, especially if you use not one, but several analysis tools at once.
A fairly important factor in the best use of this algorithm is trading time. Here, the greatest volatility and the possibility of correctly entering the market have absolutely opposite frequency.
That is why the indicator for intraday trading “Bollinger Squeeze v9” includes the ability to automatically determine the beginning of a trend movement.
What's the result?
In conclusion, we would like to say that you should always remember that using any one algorithm in currency trading, even the most modern and advanced one included in the rating of the best trading algorithms, will not always be the key to success.
One indicator is just a useful tool. But in combination with other equally useful tools, it can bring quite good results, so experienced traders recommend using several indicators that correspond to your chosen trading strategy.
Best Forex Indicator Developments – Technical Review
It is possible to make a stable profit from trading on the Forex market only if the trader opens orders with “knowledge of the matter.” If you enter the market randomly, then your profit will depend solely on the coincidence of circumstances.
To improve trading efficiency, it is worth understanding what indicators are best to use in Forex. With their help, the trader assesses the situation on the market and decides whether to open a deal or wait.
Types of indicators used in Forex
Despite the differences in the operating algorithm, all indicators are conventionally divided into groups. The fact that a particular tool belongs to a certain category does not mean that different algorithms cannot be used simultaneously. They can be combined in any combination; everything here depends only on the preferences of the trader.
Main groups of indicators:
- Trending. Shows the presence of a certain price movement. Prominent representatives of this group are, for example, Moving Average (MA), Bollinger Bands, Parabolic SAR, CCI, Alligator;
- Oscillators. Shows the strength of the trend. Typical representatives of the category are RSI, Stochastic, MACD, Momentum, Ichimoku;
- Psychological (volume tools). The most complex programs in their algorithm. They are usually not included in the standard terminal package. Examples include the Chaikin or Cayman indicator.
Sometimes there are tools that display volatility, but they all work on the basis of mathematical calculations using formulas.
For some instruments to work correctly, history is required for a certain period, so in case new installation the terminal will need to download it manually or wait until it happens automatically.
Bollinger Bands
If the question of which indicators are best to use on Forex is one of the most exciting for a beginner, then experienced traders are often limited to the standard set supplied with the MT4 terminal.
One of the most popular indicators is Bollinger Bands or BB. It is placed directly on the chart, preferably switched to display Japanese candlesticks. Its operation is based on a simple moving average and two parallel lines displayed with offset periods set in the settings.
With the help of BB, traders determine:
- Decrease or increase in volatility. This is indicated by the narrowing and widening of the extreme lines;
- Trend direction. If the lines are directed upward, this is an upward trend, if these bands are directed downward, then this indicates a downward trend.
RSI
The RSI or Relative Strength Index indicator is used to determine overbought and oversold levels (). For ease of display, it is fixed not on the chart itself, but below.
In practice, this algorithm is often used in conjunction with other tools, but even in the singular you can get good signals from it. Typical option application of RSI looks like this:
- If the curved line crosses the horizontal strip with a value of 70 from bottom to top, then you need to wait for the moment of the reverse intersection and open a sell position (SELL);
- After crossing the line with a value of 30 from top to bottom, you should expect a reverse “signal” and at this moment enter into a buy deal (BUY).
Combining indicators for use on Forex
Traders often use several technical tools at once, which allows them to weed out false signals and increase the percentage of profitable trades. By the way, you don’t have to look for rare specimens on the Internet, but just use the algorithms from the standard set of the MT4 terminal.
One of the options for such a combination is RSI + BB. To start using such a “homemade” combination, you will first need to add RSI to the chart, followed by Bollinger Bands. We recommend selecting the Previous Indicator’s Data mode, otherwise it will be automatically displayed on the chart.
Thanks to the combination of the lines of two indicators, we have a significantly larger number of signals to open positions, because we can wait a long time for the moment of breaking through the RSI lines at values of 30 or 70. During this time the price currency pair is capable of passing about 200-300 points at the 4th mark, which actually means a lot of lost profit.
A trading system based on the above complex looks like this:
- Crossing the upper band of the BB curve instrument from the RSI from top to bottom signals the possibility of concluding a sell transaction;
- A breakdown of the lower BB line from bottom to top means that it is time to open in the direction of purchases.
The above example is good for conservative trading, when the current trend is most likely to continue for a long time. When choosing a more aggressive trade, a trader can enter the market at almost every intersection, including the central moving average of the Bollinger Bands indicator.
This approach is considered noticeably more risky, but it allows you to earn much more profit if the trader chooses really good moments.
In addition, BB allows you to determine a flat or the period of emergence of a new trend. Narrowing lines indicate a decrease in volatility, and at the same time an increased risk of entering the market due to too “short” price movements. The extension allows you to judge high volatility, when a successful entry will bring profit to the trader.
Forex indicators are an important analysis tool for a trader, which is indispensable in predicting price fluctuations. Experienced traders use a large number of indicators to obtain more accurate data for entering the market. The Forex technical indicator helps in making a correct forecast of the behavior of prices of currencies or other trading instruments for a certain period of time.
As you know, the market can be in two states, such as trend or flat. In this regard, according to functionality, technical indicators on Forex are conventionally divided into two types:
- Trend indicators (trend indicators), indicating the presence of a direction, which can be downward or upward;
- Oscillators (leading indicators), which show price deviations from its average value and give an entry signal based on the overbought and oversold conditions of the instrument. They are used when the market is stationary, and they are also used to determine the moment of trend reversal.
Also included in a separate group are psychological indicators for Forex, which determine the mood of market participants. In this section we have collected the most popular and effective Forex indicators for MetaTrader 4 and MetaTrader 5. We are constantly expanding the line of Forex indicators for traders, each indicator contains detailed description and is available for download free of charge for all LiteForex clients.
The foreign exchange market indicator is based on the value of trading volume and price. By analyzing the behavior of the indicator, you can determine which direction the market will go - it will change or maintain the current trend. With the help of technical indicators, traders who use technical analysis in their work make decisions about opening or closing positions.
There are several types of technical indicators.
Trend indicators analyze the price movements of a certain trading instrument on the market. Using trend indicators in trading, you can not only determine where the price is currently moving on different timeframes, but also find out how strong the current trend is. Trend indicators are universal and can be used in any trading strategy.
Among the trend indicators there are trend line indicators, which, based on the data received, try to extend the trend line, thereby predicting the future price. However, most often these data are not confirmed in practice.
Channel indicators used when trading in price channels, the main principle is the need to build a line of support and resistance. When using channel indicators, you can independently set the channel width and select the initial data on the basis of which it will be built.
Oscillators- these are Forex indicators that help you make good money on a market that is sleeping in a flat. With their help, you can determine new lows and highs on the chart - the oscillator indicator shows when the price changes its direction.
Leading indicators show future trends even before they actually manifest themselves in the economy of a particular country.
Volatility indicators show the profitability of the Forex market.
Scalping indicators in its pure form are rarely used on the market. A whole scalping system is needed because it gives best results compared to single use of the indicator.
Trading volume indicator makes it possible to assess the strength or weakness of a particular market movement, since it acts as a confirming factor when prices rise or fall.
Divergence indicator is a trading signal that occurs when the balance of indicators between technical indicators and the price chart itself is disrupted. This happens when the indicator does not record the highest high or low in price. Any divergence indicator shows in the window of the trading terminal a significant deviation of the price from the chart of the indicator itself.
CSS indicator, or currency strength indicator is a tool that allows you to measure the strength of currencies relative to each other. To calculate readings, CSS uses technical data, which allows you to respond very quickly and dynamically to any market changes.
To see signals for opening or closing, indicators are superimposed on charts of prices and trading volumes financial instruments. Analysis of indicator indicators provides the necessary information - from future price fluctuations to the most accurate forecast.
MetaTrader 4 contains indicators that are fundamental among all those existing today. Using MetaTrader 4 gives you the opportunity to work with all of them while trading.
Examples of some indicators of the MetaTrader 4 terminal:
Start your technical analysis with the terminal
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