Best Forex Trading Trend Indicators Explain, Beginners Should Know.

[Paulsy]

Simple steps to identify a change in Forex trend​

• Mark the swing high and swing low on your charts to determine the current trend.
• Once a swing low of an uptrend is broken or a swing high of a downtrend is broken, the direction of the forex trend will change.
• A trend change can be easily identified, but it is surprising how many traders get trapped on the wrong side because they don’t understand the concept.

A forex trend indicator is best determined by examining price and observing a change in market structure, as shown in the image below.

The easiest way to find a new trend is to find a trend that breaks a lower high. Depending on your trading preference, you can do this in any time frame. See how lower highs are ramping up into a trend direction change in the image above.

Understanding the key principles and applying them to a demo trading account is the best way to learn forex trading technical analysis. Another method to learn is to copy professional traders until you are confident enough to trade on your own. In copy trading, a trader copies the positions of a professional trader, either automatically or manually. Learn more on how to Copy Trade with AximTrade.

 

[Gorm]

Moving Average (MA), Bollinger Bands, Average True Range (ATR), Moving average convergence/divergence or MACD, Fibonacci, Relative Strength Index (RSI), Pivot Point, and Stochastic are the top 10 indicators used in forex trading. Traders use the Relative Strength Index to identify overbought and oversold conditions in the market. Forex indicators are one way of examining market data. By examining historical data, such as currency price, volume and market performance, indicators seek to predict how the market will behave in the future and which patterns are likely to be repeated.

It is important to note that all these indicators need to be tested in practice. It will not be possible to trade profitably from a simple installation of all indicators on the chart. You need to open a demo account, and preferably a cent account, for example, in ForexChief, and test, check everything in practice.
Only after that it will be possible to understand how this or that indicator works and how effective it is.

 

[LamarKenyon]

Thank you for sharing your guide on indicators. I believe that they are so important. Some of them even help in determining the flow of volatility. They work, and I use them with fundamental analysis to get a complete picture of what I need to do and how I will move in the future.

 

[Zooscopy]

A very informative post. I personally prefer the Fibonacci above any other indicator in the universe. It shows the most accurate market direction. The golden ratio of 1.618 is the most important aspect of the Fibonacci tool. This ratio is used by forex traders to identify market reversals and profit-taking areas.

 

[Gorm]

I generally refused to use trading indicators. Price chart only. I also use trading volumes from the exchange terminal

 

[Homostone]

This is a great article that’ll help beginners understand the concept of indicators and how to use them. Thank you for sharing!

 

[Verves]

For my setup, I like to use SMA (30 as the moving average period) and a candlestick chart of 5 minutes.
I check whether there is an uptrend or a downtrend and, consequently, whether there is a bearish or bullish candlestick. Then I check whether the candlestick breaks through the Moving Average from above or below. I place my entry accordingly.

 

[Gorm]

I recommend gradually giving up all indicators. I did it myself a long time ago. The results of my trading have significantly improved.

 

[Monique Rich]

Your contribution is greatly appreciated. This kind of post needs to be shared more often. These are useful for beginner traders.

 

[Isometric]

Thank you for sharing this informative post! Many traders use two or three indicators to know what the situation is like. I like to use pivot points with VWAP as my combination.

 

[Gorm]

I gave up indicators altogether and my trading results have improved dramatically

 

[Teropus]

I use SMA along with MACD and RSI. I used to use Bollinger Bands too, but I don’t use them now, as RSI does the job.

 

[Braggart]

Thank you for this good piece of information. I personally prefer Moving Averages, they are most reliable, considering their versatile range is even more helpful in predicting a future bullish or bearish market.

 

[Gorm]

I think most traders, over time, come to the point where they completely abandon the indicators. That's exactly what happened in my case.

 

[Alexandra Preston]

Thank you so much for this extensively explained post on trend indicators!

 

[Cataclasm]

I believe that indicators need to be revised as and when required. I’ve changed my indicators and combinations whenever I felt like it. I do the same now too.

 

[Bravado]

All these indicators work pretty well but a trader needs to find the perfect combination of indicators that fit with their strategy. I would like to add another reliable indicator to the list which is the Fibonacci retracement tool. Beginners may find it complicated at first but it is one of the most reliable indicators in my opinion.

 

[Gorm]

I recommend abandoning the indicators altogether.
Try to do away with all indicators and trade on the chart. Take a demo account and just try it.

 

[Linsang]

I have seen lots of traders using indicators and it works good for me as well since I’ve started trading. If we talk about indicators, moving average indicator, trend trading, price action, and RSI are the best indicators you can consider. Choosing indicators is a bit difficult because you have to choose it according to your trading strategy. Don’t go with indicators until you have experience as beginners cannot handle it properly.

 

[peter9461]

If you don't use indicators then that means you just switch to price action which is certainly a different way to analyse the market. I think it's up to people prefer as indicators are still a very good tools to use.