Top 5 Forex Indicators
There are several if not too many different forex indicators that people use to try and determine which way the market will go next. Many forex investors and traders learn how to use only a small hand full of them in their pursuit to find trading success. While there are ways to win trades with almost any tool or set of tools, some tools are definitely better than others.
First we need to determine the difference between a forex indicator, a signal and a tool. Traders use all three to try and determine which way the market will go next, an indicator is basically anything that you look for or add to your charts to give some kind of graphical clue. For example, 2 moving averages that cross would give the trader a clue that the market might be changing directions.
So with the hundreds of indicators and other tools out there, what should you spend your time studying for the best chance of success? Here are the top 5 forex indicators I use. First I will say that I don’t use any lagging indicators on my charts, I usually term these as squiggly lines; the moving averages, MACD, Stochastics, etc. They are fad indicators, work for a time then they don’t for a time, not reliable. What I do use is the foundational elements of the forex market, tools that don’t go in and out of style.
Fibonacci Retracements and Projections
Basic Chart Patterns
Trend Lines
Elliott Wave Theory
Price Barriers
If you are not using any or all of these tools, maybe you should talke a look at your tool belt.
Good luck in your trading.
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Hi, cool post. I have been wondering about this issue,so thanks for posting. I will probably be subscribing to your posts. Keep up the good work