Forex Indicators That Traders Should Learn - Understanding Indicators

There are different methods used to trade the market, the most popular method being technical analysis & use of indicators to analyze price movement. When it comes to forex analysis - indicators are used to come up with various trading methods.

The most popular indicators in the market are:

1.Moving Average Indicator

2.MACD

3.RSI Indicator

4.Stochastic Oscillator

5.Bollinger ##BandsBand

Moving Average Indicator Explained

Moving average indicator is used to determine market trend direction. This Moving Average indicator calculates the moving average of currency prices over a particular period of time. This moving average indicator is a trend following indicator that shows the direction of the trading market. Once a trader determines the direction of the market trend they then can determine whether to open buy or sell trade transactions.

Moving Averages are set on the charts & can be used to generate trading signals using the following techniques.

· Moving Average Indicator - Indicators

• Price Period of MA
• SMA, EMA, LWMA and SMMA
• Moving Average Trend Identification - Indicators
• Moving Average Indicator Whipsaws in Range Market
• Moving Average Cross-over Trade Method
• Moving Average Support and Resistance Areas in Forex Trading
• How to Choose a Moving Average To Trade with
• Short-Term & Long-Term MA Indicator Setups
• 20 Pips Price Range Moving Average Indicator Strategy

RSI

RSI indicator is used to figure-out the momentum of a market trend. The RSI indicator displays prices are closing higher than where they open when the RSI indicator is above 50 center mark and this means traders should open buy trade transactions. When RSI indicator is below 50 center mark it means prices are closing lower than where they open and traders should only open sell trade transactions.

The RSI indicator can also be used to determine overbought & oversold levels. Overbought levels is when the RSI indicator is above 80 mark & oversold levels is when the RSI indicator is below the 20 mark.

RSI indicator can be used to generate trading signals based on following techniques:

· RSI Indicator - Forex Indicators Discussed

• RSI Indicator Overbought and Oversold Levels
• Relative Strength Index RSI Indicator Divergence Trade Setups
• RSI Classic Bullish and RSI Classic Bearish Divergence Strategy
• RSI Hidden Bullish & RSI Hidden Bearish Divergence Trading Strategy
• RSI Indicator Swing Failure Strategy
• RSI Indicator Chart Patterns RSI Indicator Trend Lines in Forex Trading
• RSI Indicator Analysis Summary

Bollinger Bands - Understanding Indicators Bollinger Bands

Bollinger Bands indicator is used to determine the market trend direction as well as the upper price band lower price band that calculate the band within which price should move within. These upper band lower band can be used to open trades & also to calculate where to close open trades.

Bollinger Bands indicator can be used to generate trading signals based on following techniques:

· Bollinger Bands Indicator Discussed

• How Bollinger Bands Indicator Works
• Bollinger Bands Volatility Analysis
• Bollinger Bands Bulge and Bollinger Bands Squeeze Technical Analysis
• Trading Bollinger Bands Price Action in Trends
• Bands Price Action in Range Market
• Bollinger Bands Trend Reversals Technical Indicator Analysis
• Bollinger Bands Technical Indicator Summary

MACD Indicator - MACD Indicator

MACD indicator is used to determine the momentum of market trends, MACD indicator levels above 50 center mark means that price is bullish while MACD indicator below 50 center mark means that price is bearish.

MACD indicator can be used to generate trading signals based on following techniques:

· MACD Indicator - Understanding Indicator MACD

• MACD Fast Line and Signal Line Technical Analysis
• MACD Buy Signal & MACD Sell Signal Indicator Analysis
• MACD Indicator Whipsaws and Fake Out Signals
• Generating MACD Center Line Crossover Signals
• MACD Classic Bullish Divergence and MACD Classic Bearish Divergence Trade Setups
• MACD Hidden Bullish Divergence and MACD Hidden Bearish Divergence Strategies
• MACD Indicator Summary

Stochastic Oscillator - Indicator

Stochastic Oscillator indicator is commonly used to determine overbought and oversold levels. These overbought and oversold indicators levels are used by traders to determine where to open trades and also when to close trades.

Stochastic Oscillator indicator can be used to generate trading signals based on following techniques:

·Stochastic Oscillator - Forex Indicators Discussed

• 3 Types of Forex Stochastic Oscillators Indicators
• How Stochastic Oscillator Works in Forex Trading
• Trading Oscillator Overbought & Oversold Levels in Forex
• Technical Analysis of Stochastic Oscillator
• Stochastic Indicator Crossover Signals
• Stochastic Oscillator Divergence Trade Signals
• Stochastic Technical Indicator System

The above indicators are the most commonly used indicators in the market that traders should learn. The knowledge of these chart indicators will help traders to come up with effective forex techniques & forex strategies for trading currencies.

Forex traders also can combine these indicators so as to come up with the Combination of Indicators for Trading and best indicators for creating a system. For example Stochastic Forex System - Combination of Indicators for System Example shows traders an example of how to come up with a system. The trader will then come up with written rules of how to generate buy and sell signals using this trading indicator based system. A trader will also have trading rules that will determine when they should close trades, where they will be setting take profit levels & where they will set stop loss levels.