{"id":90056,"date":"2016-05-20T06:15:29","date_gmt":"2016-05-20T10:15:29","guid":{"rendered":"http:\/\/countingpips.com\/?p=90056"},"modified":"2016-05-20T06:15:29","modified_gmt":"2016-05-20T10:15:29","slug":"what-is-the-best-technical-indicator-in-forex-trading","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/05\/what-is-the-best-technical-indicator-in-forex-trading\/","title":{"rendered":"What is the Best Technical Indicator in Forex Trading"},"content":{"rendered":"<div id=\"inves-2382383521\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">May 20, 2016<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p><span style=\"font-weight: 400;\">Progress in technical analysis makes the trading process easier and more productive. Forex indicators are very popular assistants that represent price derivatives and help to identify implicit trends on the chart, levels of price correction, breakouts, the pivot points, changing tendencies and so on. However, the diversity of programs is so great, that sometimes it is difficult to choose the best one.<\/span><\/p>\n<h2><b>How to select an indicator?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">There is no perfect software. All programs have their own pros and cons and specific aims. First of all, a trader should know for what he needs a technical assistant. There are several types of leading Forex trading indicators:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h3><b><b>Trend<\/b><\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The main purpose is trend prediction, i.e. to identify tendency and forecast price movements. An indicator of this type is able to depict the market sentiment, what becomes a good basis for profitable trading. Assistants are included in many terminals. You can look at the list of <\/span><a href=\"http:\/\/www.forex-awards.com\/best-global-trading-platform\/\"><span style=\"font-weight: 400;\">top trading platforms<\/span><\/a><span style=\"font-weight: 400;\"> and take part in voting for the best one in this or that category.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Most popular free Forex indicators of this type are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">MACD<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Parabolic SAR<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Moving Average<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">StepMA<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">SuperTrendPlus<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h3><b><b>Volatility<\/b><\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Such programs are used to calculate amplitude of price fluctuation and correlation for a particular period of time. Volatility analysis helps to see the current trend and predict the price movements. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Examples of programs are the following:<\/span><\/p><div id=\"inves-1622709440\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Volatility Hyper Trend<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Better Bollinger Bands<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">ATR Channels<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Keltner Channels<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Ozymandias<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h3><b><b>For scalping<\/b><\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Such Forex technical indicators (as Stochastic, Forex Turbo Scalper, Camarilla DT, Free scalping indicator and the like) are the part of scalping strategy and help to make decisions during intra-day trading. As scalping is a type of trade that gives an opportunity to take profit from small swings in prices of a currency pair, indicators should be fast, accurate and easy to interpret.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h3><b><b>Volume<\/b><\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The main point is to count the number of transactions per one unit of time. Such approach helps to detect the increase and decrease in demand, what become an alert for the end of trend.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Among indicators of this type are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">MACD and Volumes (is considered to be the best Forex indicator of this type)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Volumes Suite<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Candles Suite<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Normalized Volume<\/span><\/li>\n<\/ul>\n<h2><b>TOP-3 best Forex indicators<\/b><\/h2>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h3><b><b>Moving Average<\/b><\/b><\/h3>\n<p><a href=\"http:\/\/countingpips.com\/articles-analysis\/wp-content\/uploads\/2016\/05\/moving_average.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-90057\" src=\"http:\/\/countingpips.com\/articles-analysis\/wp-content\/uploads\/2016\/05\/moving_average.png\" alt=\"moving_average\" width=\"315\" height=\"189\" \/><\/a><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Probably no trader can get without this indicator, that depicts the changes in prices by means of horizontal lines that help a user to make a choice between buy (blue lines) and sell (red lines). It belongs to free Forex indicators and when well-tuned, it works profitably and correctly.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h3><b><b>ZUP for MT4<\/b><\/b><\/h3>\n<p><a href=\"http:\/\/countingpips.com\/articles-analysis\/wp-content\/uploads\/2016\/05\/zup-1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-90060\" src=\"http:\/\/countingpips.com\/articles-analysis\/wp-content\/uploads\/2016\/05\/zup-1.png\" alt=\"zup\" width=\"328\" height=\"194\" \/><\/a><a href=\"http:\/\/countingpips.com\/articles-analysis\/wp-content\/uploads\/2016\/05\/zup.png\"><br \/>\n<\/a><a href=\"http:\/\/countingpips.com\/articles-analysis\/wp-content\/uploads\/2016\/05\/zup.png\"><br \/>\n<\/a><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">This complex program has been worked out as a multifunctional instrument with levels and figures, defining various activities in the market and consisting of different other Forex technical analysis indicators. The application overlays its figures directly on the candlestick pattern chart. One of the major figures is \u201cButterfly Gartly\u201d, which is based on the ratio of Fibonacci numbers together with fractal and other elements.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h3><b><b>Way Market<\/b><\/b><\/h3>\n<p><a href=\"http:\/\/countingpips.com\/articles-analysis\/wp-content\/uploads\/2016\/05\/way_market.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-90059\" src=\"http:\/\/countingpips.com\/articles-analysis\/wp-content\/uploads\/2016\/05\/way_market.png\" alt=\"way_market\" width=\"334\" height=\"193\" \/><\/a><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">This program can be called one of the best technical indicators for Forex. It is universal in its usage, as setting only Way Market on the chart of the currency pair, a trader will immediately receive the output data from the five most popular indicators. Moreover, the indicator is not reducible to a simple conclusion obtained data, all the settings are pre-processed and provided in the most convenient form in a round-a-clock mode.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><b>How to tune up a Forex indicator?<\/b><\/h2>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Define what an indicator should depict (trend strength, direction, levels of support \/ resistance, divergence and so on).<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Set a timeframe (it depends greatly on the trading strategy).<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Study, how the software works by investigating the history of charts.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Determine the types of signals (advance of delayed).<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Set and reset parameters on the dashboard, achieving the needed quality of signals.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Test the program on a demo- or micro-account.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">These simple rules will help you to improve your work with technical assistants and organize trading in most comfortable way.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Practically every indicator can become best for the trader, who has managed to tune it up according to their own needs. The main point is to scrutinize the program\u2019s potential and test its capabilities, not forgetting to consult the economic calendar. With time and experience every trader may work out his own best Forex technical indicators, which will lead to successful profitable future.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Article by Forex-Awards.com<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Progress in technical analysis makes the trading process easier and more productive. Forex indicators are very popular assistants that represent price derivatives and help to identify implicit trends on the chart, levels of price correction, breakouts, the pivot points, changing tendencies and so on. However, the diversity of programs is so great, that sometimes it [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-90056","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/90056","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=90056"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/90056\/revisions"}],"predecessor-version":[{"id":90061,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/90056\/revisions\/90061"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=90056"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=90056"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=90056"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}