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Help: Forex Indicators

Discussion in 'Beginners Bootcamp' started by bigfish, Jul 28, 2010.

  1. bigfish

    bigfish Recruit

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    Hi, I am very new to forex. i use indicators but will like to know which indicator does not fake out and very reliable. Fo now i demo trade and trade forex on betonmarket.com and will like anyone to help me with any indicator that can use in my trading.I need to know the direction of the market even in a minute upto a day. Please help me out.
     
  2. Pharaoh

    Pharaoh Colonel

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    If there was one indicator that was super-reliable, we'd all be rich now. :D

    What you need to do is start with a couple of basic indicators to signal when to enter trades (maybe exit also - or you can have exit rules based only on TP and SL - that's up to you). Test this out. If it shows signs of being useful, see if you can add another indicator that will filter out more bad trades than good trades.
     
  3. bigfish

    bigfish Recruit

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    Many thanks dear. I guess i keep trying on demo until i see the one that works well for me and suit my trading strategy well.
     
  4. TimeTrade

    TimeTrade Recruit

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    Hello bigfish,

    it's right. You have to test on your own which indicator suites you best.
    But here's a little hint. Don't make it too complicated. It's no rule, that the more indicators you use, the more profit you make. I'm still a newbie I think. I trade for 1/2 Year now, but i only use S/R-Lines, Trendlines and Pivot-Points and generate proper profits...
    Keep on demoing :)

    greets
     
  5. Forexwatchman

    Forexwatchman Sergeant

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    While you explore the vast world of forex indicators, here's my advice on narrowing down your search and efforts. Always keep in mind that indicators fall into one of two main categories: trend-following and oscillating. The type of signals that these two types of indicators give you are only valid if the market is doing what the indicators were designed to measure; in other words, if the market's ranging then you want to only observe your oscillators, and vice versa for trending markets. From there it becomes a matter of knowing what type of market you are in (trending or ranging), which I recommend the Advanced ADX for that.

    My method of narrowing down the search was to find several technical analysts whose opinions and analyses that I trusted and then I took a look at their charts and studied the indicators that they were using. From my experience, most of the old pros use some sort of momentum indicator like the RSI, CCI, or ADX and the rest is strictly fibonacci, MA's, trendlines, support/resistance, and pivots. These sorts of things take more time to get good at than just throwing a programmed indicator on the screen and watching it for signals but they are used far more often than any single indicator, thus the market become a self-fulfilling prophesy when it comes to things like trendlines and fib levels especially when they sync up together on the charts. All I know is they work great for now, so until that changes, I'm sticking to them. Hope I helped.
     
  6. osasyankee

    osasyankee Private, 1st Class

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    As a new trader, I advice you stick to the SMA, EMA and RSI, cos all other indicators are primarily an advancement of these simple indicators.
     
  7. ibham1

    ibham1 Private, 1st Class

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    I agree with osasyankee, try a combination of the 13ema, 21ema, 34ema, 55ema and 89 ema, when the are all lined up (one above the other in an uptrend and all pointing up - viceversa for a downtrend) you know you have a strong trend. You can the wait for a pullback and the a continuation of the trend - indicators such stochastics or RSI may help with this.
     

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