What Is The Best Forex Trading Indicator?

A lot of the forex traders out there would tell you that currency trading is very difficult at times and making it a consistent profitable machine is about the most difficult thing you can do. The best forex trading indicator would have to be the Relative Strength Indicator (RSI). This trading indicator can help you make consistent profits on trades.

When it comes to the forex market the RSI helps you look at the market from the point of view of over bought or over sold. This can help give traders an indication of the direction the market is moving. The best advantage of this indicator is that it has been proven to work in a lot of different financial markets, such as stocks, and it gives a very accurate look at the direction of the market.

If you're looking at the RSI numbers, you need to understand that the higher then umber the more over bought the market is. If there is a small number it is over sold. You're probably wondering how this helps you. It become an exceptional tool when you look at micro and macro reversals in the forex market.

Try this helpful tip. Apply the RSI on a one minute chart and eighteen period. This will help you get some nice entry signals.

This is about the best forex trading indicator I have found. It gives you a good look on the direction of the market, so you can time your buys to make profitable trades.