Forex Indicators

Forex Indicators

Contemporary traders no longer spent too much time for mathematical calculations – nowadays Forex indicators do it for them, forecasting the market changes and significantly facilitating the price calculation in future. The market indicators’ mission is not limited to the price forecasting. It informs a trader about any important changes – including the information about the exact second the price reaches or exceeds its value. The best Forex indicators serve to relief traders from performing their own calculations. A market player has only to interpret the indicators’ trading signals correctly. Since Forex is mostly characterized by the cyclical price movements (fluctuations that make it possible to forecast the future price correctly), a particular price trend is expected during a variable period of time. As a result, traders will have no difficulty in making a “right stake” on an approaching moment of exit (entry) the market. Any trader, who decides to download Forex indicators, will nearly unmistakable be closing profitable transactions.

The information about the price fluctuations provided by important Forex indicators, brings the intended targets closer, significantly shortens a process of calculations, simplifies and facilitates the whole trading process. The information that trader obtains if provided in the most comprehensible and clear form. This privilege is also ensured by the popular MT platform. Judging by the market players’ reviews, they feel very convenient using the platform’s integrated indicators, segmented into sub-groups. The market players start their work with Forex indicators from accessing a menu and selecting “Indicators” box (it is located on a control panel in “Insert” tab).

What beginners immediately learned is that using important Forex technical indicators in their trading, they get more chances to close their transactions successfully. And experienced traders went even further: they improve their results without relying on some single indicator, because it will never provide an absolute outcome. After examining the proposals and reading the colleagues’ reviews, it would make sense choosing several instruments. Their synchronized use will bring better results, because operating under such mode they simultaneously confirm each other’s signals. The best thing is to select not more than three and not less than two Forex technical indicators – a larger number of instruments per one trading chart will misdirect a trader. In order to prevent this from happening, traders always record the agreements between timeframes of charts and indicators.

Forex oscillator types

All instruments can be broadly classified into three sub-groups:

  • Trend indicators. Based on the name, we understand that this instrument tries to find a trend on Forex market by determining the price movement direction. These best Forex indicators determine the points of entering a transaction that takes place more rarely. In a number of instances, these indicators are considered to be ineffective and delaying (for example, when there is no trend on the market).
  • Forex oscillators. They determine the price deviation from the average one. These oscillators work quite precise and, importantly, in advance. Beyond that, they nearly faultlessly identify the overbought condition. This term means that there are enough of bought commodities and there are no more funds to buy – as a consequence, the forthcoming decrease in the price should be expected. The oversold condition reflects that the price is considerably reduced, which may increase the demand – some buyers will enter the market and begin to buy, thus triggering another currency appreciation. Oscillators perfectly work in corrections, but in case of a trend, they can send signals incorrectly – that’s their main weakness. In fact, oscillators “forecast the future” of a transaction, predetermining subsequent movements of the price.
  • Psychological Forex indicators. These indicators are engaged in the study of the player’s behavior on Forex financial market. Apart from that, they determine a climate among traders – they consider the players’ current state of mind and determine their intentions of buying or selling any particular currency, thus affecting the rate movement.

Apart from the abovementioned Forex indicator types, they are also classified into categories – by method and by goal of action. For ease of use, Forex trading indicators can be divided in “Levels” (responsible for plotting levels on a chart), “Market Analysis” (aimed at analyzing and concluding about the current financial market situation), and “Reverse Indicators” (created to send signals before the price begins to move in the reversed direction). Thus, “adverse opinion” Forex indicator can capture the market atmosphere, and if, for example, it was triggered by the wrong forecasts of any financial journalists – tell traders to trade against this opinion.

Download forex indicators for free for MetaTrader 4

How to install an indicator

  • First step. Preparations. Create a folder on your computer.
  • Second step. Forex indicator downloading. Download a chosen indicator and install it to your trading terminal.
  • Third step. Unpack the downloaded archive to your desktop, and then place it to the folder. Open the contents – sometimes, along with the program, the folder may also contain a text file with a description of the program and its installation process.
  • Fourth step. Copy the working files of the indicator to the folder with MetaTrader indicators. Notice that the majority of folders are named “Indicators”. To find the right folder, right-click on the terminal’s icon, then go to Properties and select “Find Object” command. After that, go to “Experts” folder – that’s the location of “Indicators” folder to copy the necessary files to.
  • Fifth step. Reloading. After restarting your terminal, the downloaded trend indicators will appear in the corresponding tab of the program.
  • Sixth step. Getting started. Before starting to work with the new indicator – by adding it to a chart of the currently traded currency pair – it is necessary to check and understand its working parameters and settings.
  • With a mind to a better understanding the working principle of an unstudied indicator, try to use it on a demo-account. Test it for a couple of days, understand its operation algorithm and switch to a real-account.

Forex for beginners