Indicators That Traders Should Learn - Understanding Indicators

There are different methods used to trade the market, the most popular method being technical analysis and use of indicators to analyze forex trading price movement. When it comes to forex technical analysis - indicators are used to come up with various trading methods.

The most popular trading indicators in the forex market are:

1.Moving Average Indicator

2.MACD Indicator

3.RSI Indicator

4.Stochastic Oscillator Indicator

5.Bollinger Bands Indicator

Moving Average Indicator Explained

Moving average indicator is used to determine forex market trend direction. This Moving Average technical indicator calculates the moving average of forex currency prices over a specified period of time. This moving average indicator is a trend following trading indicator that shows the direction of the FX market. Once a trader determines the direction of the market they can then know whether to open buy or sell trades.

Moving averages are placed on the forex charts & can be used to generate forex signals using the following methods.

· Moving Average Indicator - Technical Indicators

• Price Period of Moving Average
• SMA, EMA, LWMA and SMMA
• Moving Average Trend Identification - Forex Technical Indicators
• Moving Average Indicator Whipsaws in Range Forex Market
• Moving Average Crossover Forex Trading Method
• Moving Average Support & Resistance Levels in Forex Trading
• How to Choose a Moving Average To Trade Forex with
• Short-Term and Long-Term Forex Moving Average Technical Indicator Setups
• 20 Pips Price Range Moving Average Technical Indicator Trading Strategy

RSI

RSI technical indicator is used to figure out the momentum of a forex trend. The RSI indicator shows prices are closing higher than where they open when the RSI indicator is above 50 center mark and this means forex traders should open buy trades. When RSI indicator is below 50 center mark it means forex trading prices are closing lower than where they open & forex traders should only open sell trades.

The RSI technical indicator can also be used to determine overbought & oversold levels. Overbought levels is when the RSI indicator is above 80 mark and oversold levels is when the RSI indicator is below the 20 mark.

RSI can be used to generate signals based on the following methods:

· RSI Indicator - Trading Indicators Explained

• RSI Indicator Overbought & Oversold Levels
• Relative Strength Index RSI Indicator Divergence Trading Setups
• RSI Classic Bullish & RSI Classic Bearish Divergence Trading Strategy
• RSI Hidden Bullish & RSI Hidden Bearish Divergence Trading Forex Strategy
• RSI Indicator Swing Failure Trading Strategy
• RSI Indicator Chart Patterns RSI Indicator Trend Lines in Forex Trading
• RSI Trading Technical Indicator Technical Analysis Summary

Bollinger Bands - Understanding Indicators Bollinger Bands

Bollinger Bands indicator is used to determine the forex market trend direction as well as the upper price band lower price band that calculate the band within which forex price should move along within. These upper band lower band can be used to open forex trades and also to calculate where to close open forex trades.

Bollinger Bands indicator can be used to generate forex signals based on the following methods:

· Bollinger Bands Indicator Trading Indicator Discussed

• How Bollinger Bands Indicator Works
• Bollinger Bands Forex Market Volatility Analysis
• Bollinger Bands Bulge and Bollinger Bands Squeeze Forex Technical Analysis
• Trading Bollinger Bands Price Action in Forex Trends
• Bands Price Action in Range Forex Market
• Bollinger Bands Forex Trend Reversals Technical Indicator Analysis
• Bollinger Bands Forex Technical Indicator Summary

MACD Indicator - MACD Technical Indicator Tutorial

MACD indicator is used to determine the momentum of forex market trends, MACD indicator levels above 50 center mark means that forex trading price is bullish while MACD indicator below 50 center mark means that forex price is bearish.

MACD indicator can be used to generate forex signals based on the following methods:

· MACD Indicator - Understanding Indicator MACD

• MACD Fast Line and Signal Line Forex Technical Analysis
• MACD Buy Signal and MACD Sell Signal Technical Indicator Technical Analysis
• MACD Indicator Whipsaws and Fake Out Forex Signals
• Generating MACD Center Line Crossover Forex Signals
• MACD Classic Bullish Divergence and MACD Classic Bearish Divergence Trading Setups
• MACD Hidden Bullish Divergence and MACD Hidden Bearish Divergence Trading Strategies
• MACD Indicator Summary

Stochastic Oscillator - Technical Indicator

Stochastic Oscillator indicator is commonly used to determine overbought and oversold levels. These overbought and oversold indicators levels are used by traders to determine where to open forex trades & also when to close forex trades.

Stochastic Oscillator indicator can be used to generate forex signals based on the following methods:

·Stochastic Oscillator - Trading Indicators Explained

• 3 Types of Forex Stochastic Oscillators Indicators
• How Stochastic Oscillator Works in Forex Trading
• Trading Oscillator Overbought & Oversold Levels in Forex
• Analysis of Stochastic Oscillator Indicator
• Stochastic Indicator Forex Trading Crossover Trading Signals
• Stochastic Oscillator Divergence Forex Signals
• Stochastic Technical Indicator Trading System

The above technical indicators are the most commonly used technical indicators in the forex market that forex traders should learn. The knowledge of these forex chart indicators will help forex traders to come up with effective forex trading methods & trading strategies for trading forex currencies.

Forex traders can also combine these indicators so as to come up with the Combination of Indicators for Forex Trading and best indicators for creating a trading system. For example Stochastic System - Combination of Indicators for Trading System Example shows forex traders an example of how to come up with a trading system. The forex trader will then come up with written trading rules of how to generate buy and sell signals using this indicator based trading system. A trader will also have trading rules that will determine when they should close trades, where they will be setting take profit levels & where they will set stop loss levels.