Forex trading indicators are divided into 4 groups.

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Forex trading indicators are divided into 4 groups.

Forex indicators are said to be a trader's best friend. No matter how the price changes. The truth is always revealed through these scriptures. Today, there are many Forex indicators that traders can choose from in different trading software. But with so many to choose from, we often feel confused about how to choose. Especially for new traders who don't know how to use Forex indicators.

In this article, we invite you to discuss the meaning of Forex indicators and introduce different Forex indicators that new traders should know to stay informed.

What are Forex indicators?

Indicators are Forex technical indicators used to indicate specific prices. There is usually an opening price. highest value; It includes variables such as the lowest price, bid price, and trade size. Calculate and display values in graph form. As mentioned above, prices can be confusing to make analysis and decision making easier for traders. But statistics are often not foolproof. This makes the tool an important tool for specific technical analysis (technical analysis).
Forex indicators show the types you need to know.

There are many ways to classify indicators. But group the main categories to see the strength of each indicator; They can be divided into indicators that help identify new trends (trend indicators); Speed indicators Indicators to help determine speed; Indicators determine price movement (trend indicators). The trading volume (depth indicator) is analyzed according to the indicator.


1. Trend indicator: trend indicator

This indicator is a lagging indicator. The up or down trend (edge) of the current market is determined.
Trend indicators are called moving averages (MA); Exponential Movement (EMA); SAR equivalent; It is often based on historical averages, including popular indicators such as trend indicators (ADX) and moving average convergence convergence (MACD).

2. Speed indicator light: Speed indicator light.

Momentum indicators are basic indicators that identify price movements or price movements over a period of time. Some of these indicators can be called time frame oscillators. Values from 0 to 100 can also be used.
Relative Strength Index (RSI); Popular momentum indicators such as Stochastic and Ichimoku Cloud.

3. Changing indicators: Indicators show price movements.

The Price Volatility Index is a lagging indicator that measures the range of prices over a period of time. The wider the range, the higher the price. This indicates that price fluctuations are strong during the observation period. These price movements do not indicate price direction. Shows a range of prices.
We know volatility indicators like Bollinger Bands very well.

4. Volume indicator: An indicator based on trading volume.

Indicators can be leading or lagging indicators depending on trading volume. The trading volume during that period indicates the presence of buying and selling.

Common audio indicators such as Balance Sheet Volume (OBV) and Liquid Cash Flow.