Forex trading has provided opportunities for many people to make money online. Even so it will not be easy if we have no knowledge of forex trading. There are two kinds of knowledge the traders used in trading forex, they are fundamental and technical. In this discussion, I prefer to focus on technical indicators that most traders used to apply in their forex trading.
Trading indicator is always used with technical tools such as Bollinger Bands, Candlesticks, Moving Averages and more. Technical tools can also be used as an indicator in some forex trading. If you can make use of indicators and technical tools wisely, you will be able to create a robust trading system that allows us to interpret forex market in making more intelligent speculations.
Good trading system is a system that has the criteria as below:
- Indicator is simple and easy to read.
- Indicators that can show trends.
- Indicator that can give early sign or warning.
- Indicator that can indicate reversal
- Indicator that rarely makes a false signals
- Indicator that does not repaint.
- Indicator to be ideal for other indicators.
- Indicator that is not misleading when used with other technical tools.
The above criteria are merely a reminder, the system used only as your guide to trade forex, you can use any trading indicators for your trading method. There is no system provides 100% accuracy. Use it wisely and intelligently and make sure that the profits will be on your side.
