When you trade forex, of course you want to make a profit. One way to achieve this is you analyze using technical analysis. technical analysis is one that is widely used by traders. Technical analysis is an analytical technique used to predict the trend of a price by studying past market data, especially price and volume movements. Chartist is a term traders usually use tools to analyze, it can also be called an indicator.
Indicators are tools that provide data from the results of certain formulas to measure and assess market conditions so that traders can predict the next market direction. Usually this indicator term is better known as the forex indicator. The number of forex indicators to date has reached hundreds and will continue to further help traders generate profits.
The types of forex trading technical indicators are as follows:
Based on the making of this forex indicator is divided into 2, namely:
- Classic indicators: trendline, moving average
- Modern indicators: ADX, Ichimoku kinko Hyo and others
Based on its function, the forex indicator is divided into 3, namely:
- Indicators for determining trends: parabolic SAR, moving average, Bollinger bands
- Indicators for measuring market saturation: RSI, Stochastic oscillator
- Indicators for measuring market conditions: Bollinger bands, Volume
Based on the appearance of the forex indicator is divided into 2, namely:
- Oscillator indicator, which is an indicator that displays on a separate window whose movement back and forth at a certain value limit. For example, RSI and Stochastic Oscillator
- Trend indicators, which are indicators that display together on the analyzed chart. For example Moving Average
The indicator above is a type of indicator that is often used by traders, but overall the number of indicators is currently very large, and it is possible to increase again. Usually in analyzing you only need 1 to 3 types of indicators. Even so, maybe some of you find it very difficult to choose the best indicator for your trading analysis, especially for beginners.
Then we can learn about What is Forex technical analysis - Meefx CLICK HERE