Mathematical indicators were invented at the very beginning of the technical analysis, long before the creation of computer charts.
The first indicators were just a mathematical formula according to which the price average values were calculated, next, they were plotted as dots in paper price charts and connected with lines.
Modern indicators are not very different from those early tools. A modern indicator is also a mathematical formula presented by the software shell that is automatically plotted on the computer price chart.
It is a bit more complex than the calculation of the support and resistance levels, isn’t it?
This article describes forex online charts with the attached indicators. I will explain how to employ technical indicators to make money on trading Forex. As of now, all indicators are grouped into two major types, based on the principle of their use.
The above chart displays both types of indicators. Trend indicators are always directly in the working space. It is natural as they must be following the trend (the price chart). The oscillator is in the separate window below the chart.
The price chart is not so important for its work. The trend indicator in this chart is Bollinger Bands, and the oscillators are presented here by the MACD histogram indicator.
Among the common indicators widely used, these two are worth paying attention to, they are more effective in practice than other indicators.
Well, let’s get down to business and find out the best indicators to trade forex. There is the top chart of the three best Forex trading indicators
Momentum is one of the oldest oscillators. It had been first mentioned before computer analysis was introduced. That is why it is very simple. This is a forex price prediction indicator.
This is also a trend indicator, so, it is located directly in the price chart. The indicator is quite simple compared to other forex market sentiment indicators; it was designed by Bill Williams based on the combined signal of the three simple Moving Averages, it can be a trading system as well. Well, that will do for the theory of the forex swing trading indicator, let’s start making money.
This forex prediction indicator MT4 is one of the best to be used in the forex indicator strategy. This oscillator is designed to deliver trading signals of the divergence which is the strongest sign of a soon trend reversal and trend pivot level in technical analysis. Well, let us start spotting divergence and make profits! Continue reading with Litefinance.com