Posts Tagged ‘forex indicators’

What Are The Best Forex Indicators?

Sunday, November 13th, 2011

I spent a lot of time many years ago on a quest to find the best forex indicators. I’m not sure something like that exists, at least not until we can define what “best” means. In the forex markets, or any other trading instrument, when you look at technical forex indicators, that only shows you part of the picture of what is happening in the currency markets. The other critical part is how well you can interpret what the trading indicators are showing you, and knowing exactly how to apply what you are seeing.

So what makes the best forex indicators?

Primarily, the forex indicators you use must clearly show you what the market is doing right now. And, even though you may have come to believe that “predicting the future” is something you have to do to be successful with forex trading, it is pretty much pointless to try to do that.

Even with the biggest most powerful computers, it’s very difficult to “predict” what the markets will do. Why? Because, the markets are represented by Real People with Real Agendas, Real Fears, and Real Goals. And, yes, even the computer programs carry some of these biases with them.

Now, if you can see exactly what the market is doing Right Now, then you can make a much better informed decision on how you will carry out your trade (or pass on it completely). Your forex indicators must show you where the high liquidity traders are making decisions (which is not always at support and resistance points). Then, you will simply take a trade in same direction that the Big Money Traders do.

Yes, it really can be that simple. The best forex indicators always have some math involved, but you will also always have to interpret what you see, and you can enjoy some phenomenal success with some practice and experience.