Best Forex Indicators - Guaranteed to Increase Your Bottom Line

If you have been trading in the currency market for anytime at all then you are probably familiar with forex indicators. There are many different indicators and they often work in a complimentary manner. Some forex indicators work better than others while some work at certain times and do not work at other times. Let's take a closer look at what the best forex indicators are and how they can increase your bottom line.

Relative Strength Indicator (RSI) - This is my personal favorite of the technical indicators. This instrument works with an oscillator that tells the forex trader when the currency is overbought or oversold. When the currency is overbought it will start to head toward the high point of 100 and when the currency is oversold it will head south toward 0. One of the best ways to trade forex using this indicator is to buy or sell when the currency goes down below 20 or when it goes above 80.

50 Day Moving Average. I could have included the 200 day moving average but I feel that this one is better suited for trading forex in the short run. This is one of the best forex indicators not so much because it does anything really special but because it is used by the bigger institutions as a benchmark for buying and selling.

These are my two favorite technical indicators and there are many others that traders use as well but they are all incomplete in my opinion without a reliable forex software trading program. These indicators will help you out but you really need a consistently predictable software program to give you the trading signals. Using a trading software program with the aforementioned forex indicators will dramatically improve your trading results. You can find more information right below. Good trading ahead.