Introduction to Forex Technical Indicators - ForeXposed

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Tuesday, September 5, 2017

Introduction to Forex Technical Indicators


Introduction to Forex Technical Indicators
Who considers himself had become and decided to stop learning will make him fall in the hole of failure and end up exactly the same as those who never learn. Loss. Of course, you and I don't want it, right? If so, let's continue the next lesson of technical analysis.

In technical analysis, we know some of the devices that used to predict the price movement trends, to knowing the support and resistance, as well asoverbought and oversold. The device basing on historical data that happened in the past. This device named as Indicator.

The indicators created by many technical analysts and each has a specific purpose. Some experts created it to predict the ongoing trends. The other creating technical indicators to measure the overbought and oversold. While some create it to know the limitation of support and resistance.

The name of the technical indicators is much the same with the name of its creators. For example, the named Bollinger Bands indicator, created by John Bollinger.

But if you want to actually investigate the indicator, apply the principle of statistical science in the calculation. Yes, statistics. But don't worry, if you don't like the stats (just like me), the good news is, you don't need to do the calculation manually, one by one, in making the indicators. All forexcharts software providers usually already provide a built in indicators in it, and we can directly use it. There is even some platform that allows creating your own indicators. Yes, of course, if you have already advanced. I myself am not interested to create indicators.

There are more than 300 indicators you can use when doing technicalanalysis. However, in its application later, you only need 2 to 4 maximum of different types of indicators. The more indicators, no means will be the better. It is not. This will be more confusing. Use the necessary indicators, and start to get used to some indicators that are good for you.

At Netdania, there are more than 20 different types of indicators you can use. While at GAIN Capital there are about 15types, but allows you to add your own indicators, using the API (Application Programming Interface). In MetaTrader, you can add an indicator called Experts Advisor.

The image below is a selection of the indicators in Metatrader.
Introduction to Forex Technical Indicators
It needs to be stressed here, that knowing a lot of indicators are not necessarily warranting your trading will profit. The essence of the use of indicators lies in how you combine one of the indicators with other indicators as well as timing and period you use. If likened to a kingdom, then the indicator acts as an advisor for you in determining policy for your kingdom. You decide, whether such advice is adhered to or not. The more advisory the more votes are given. Sometimes it becomes not only a waste of time, even misleading and often erode our emotions.

Well, that is why you need to know and to choose indicators that best for yourself.

OK, We continue our lessons to the studying Moving Average indicator: The Mother of Indicators.