A technical indicator is a mathematical calculation using price( and volume) history and is primary used to build mechanical and automated fx trading systems. A forex trading system is defined by a common set of rules developed around technical indicators that signal entry and exit points for a given currency pair.
A few best forex indicators
1. Average Directional Movement Index (ADX)- ADX is used when we need to know the direction in which the market trend is going i.e. either downward or upward and how strong the trend is. When ADX readings over 25 indicate a trend with higher values indicating stronger trends.
2. Moving Average Convergence or Divergence (MACD)- MACD presents the momentum of the market and the liaison between two moving averages. When MACD crosses the signal line it shows a strong market.
3. Stochastic Oscillator- Stochastic Oscillator indicates the strength and weakness of a market by comparing a closing price range over a period of time. Stochastic reading above 80 depicts the currency is overbought while its reading below 20 indicates that the currency is oversold.
4. Relative Strength forex indicator (RSI)- RSI or the Relative Strength forex indicator is a scale of 100 that indicates the maximum and the minimum prices over a specified period. The price rising above 70 implies overbought while the price falling below 30 means oversold.
5. Moving Average- Moving average best forex indicator is the average price for a given time interval in relation to other prices during the similar time periods. For instance the closing prices over a 5-day period would have a moving average of the total of the five closing prices divided by five.
6. Bollinger Bands- Bollinger bands comprise of a majority of a currency’s price. There are three lines in the bands out of which the upper and the lower lines stand for the price movement while the middle one represents the average price. When high volatility prevails in the market, greater distance is witnessed between the upper and the lower bands. The time when a band touches one, overbought and oversold conditions are depicted.
Highest liquidity is observed in the forex market. The forex market absorbs trading volumes and per trade size higher than any other market. This liquidity and the freedom to enter and leave the market anytime attract investors to forex.
How can I place volume moving averages on the volume indicator?
What about ishimoku indicator?
It is one of the best indicator that i have found for forex trading. It look like a mess when you first plot it, but all the information that you need is right up there on the screen. It is very simple to make decisions using these indicators.