3 Reliable Forex Indicators to Use

There are a lot of forex indicators available in the trading arena but there are a few that I personally love to use as I find them more reliable compared to the other indicators.

Below are the 3 forex indicators that I find reliable:

1) The Bollinger Bands - The Bollinger bands are made up of an upper and a lower band. These are taken as area of support and resistance and you will usually find the price respecting them and get repelled by them. Due to the consistency of this indicator, you can make use of their upper and lower bands to scalp the market.

The Bollinger bands are also good breakout tool to use. The width of the bands can help to identify whether the market is currently in consolidation or breakout.

2) MACD (Moving Average Convergence Divergence) - This is another indicator that is very consistent in its performance. You can use the MACD to help you understand the current trend of the market, verify a breakout and identify point of reversal.

As this indicator has so many features, it is one of my favourite to use.

3) Stochastic - Some of you may think that the Stochastic works about the same as the RSI. However the Stochastic is made up of 2 lines and the crossover can help to indicate a buy or sell signal while a RSI cannot.

If you are still wondering what indicators to use in your trading, these are 3 that you should seriously consider adding to your trading toolkit.

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Reliable Forex Analysis Using Forex Indicators

Forex is a highly volatile market where price will move up and down every single second. Because of the volatile nature of forex, traders have to be very precise and accurate in their forex analysis in order to profit from it. Therefore being able to have a reliable forex analysis can be a great help to your trading account.

In order to do a good forex analysis, you definitely requires the use of several forex indicators that can help you to decide on your entry and exit position. If you have been reading up books or have been attending seminars, you are already exposed to the various commonly used forex indicators that most traders use for their forex analysis and you would have seen how they managed to use them successfully.

However, you need to know that those examples that are used in the books and courses are usually the ideal situation demonstrated by the forex indicators. In reality, the market movement will not be as ideal as those pictures in the books or courses. This is something that made me scratch my head when I first started trading currency after reading some forex books.

The most reliable forex indicators that I have used is the 200 EMA, it is in fact voted as the most realiable forex indicators in a currency trading magazine. You can use the 200 EMA as a gauge for your forex analysis. If your price move above the 200 EMA, it most likely means that the trend is shifting upward and vice versa. Another way to know the trend lies in the steepness of the 200 EMA, the steeper it is, the stronger the trend.

Once you have identified the trend, you can make use of a type of forex indicators called oscillator like the stochastic or RSI to help you check whether the market is oversold or overbought. This can make your forex analysis more reliable as you can check for possibility of reversal. If the currency pair is oversold and the price is above the 200 EMA, there is a good chance that the price is going to move up after the retracement and the opposite is true as well.

There are so many different way you can do your forex analysis using different forex indicators. The most important is for you to come up with a trading plan and then pick different indicators that can fit into your trading plan so that you can profit from it.

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