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Overview of best forex indicators
This overview deals with technical indicators in forex. As usual, I’ll answer the most popular questions. What is the most reliable forex indicator? Can you trade forex without indicators? What are the best forex indicators? What are forex trend indicators, forex market sentiment indicators? Does forex predictor indicator works? How do forex trading indicators work? How to use technical indicators in forex trading? You will find the answers to these and many other questions in the article.
This overview gives a d e tailed description of such technical indicators as: Moving Averages, Stochastic, Momentum Indicator, the Relative Strength Index (RSI), Bollinger Bands, and the famous Alligator by Bill Williams
As you know, there two main types of forex analysis, technical analysis and fundamental analysis. Both types of analysis were introduced and described in detail at the beginning of financial markets. Each type of forex analysis includes several branches. And one of the branches of global technical analysis is mathematical analysis. Nowadays, mathematical analysis has become so popular that it is almost equated with fundamental and technical analysis
Mathematical analysis aims at predicting future price movements according to the signals sent by forex price prediction indicators, which are based on mathematical laws. 99% of mathematical indicators are based on the averaged historical data.
Differently put, these forex market sentiment indicators analyze the average price values for a particular period in the past, and make an assumption about the average price in future, based on these data. The previous sentence conveys the gist of the major law of the entire mathematical analysis, which most traders either don’t understand or interpret in a wrong way, I mean the phrase make an assumption about the average price in future.
Remember, an indicator won’t show you an exact actual quote, it will only suggest the average presumed price, or, more precisely, the price range where the actual price may be. However, if you approach the use of indicators competently, even this will be enough to generate the maximum income in the forex market.
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What is a forex trading indicator?
As I said above, a technical indicator is based on a kind of mathematical formula, on the basis of which a program is written that calculates this formula, and presents the result in the form of a graphic image (lines, points, bars, zones, geometric objects, etc.).
The formula, the indicator is based on, calculates the prices values, volumes, zones on the price chart and other parameters that traders need in order to predict the future price movements in technical analysis, there are a lot of methods and laws, but all of them are divided into just 2 groups, depending on what the trader needs to know at the moment: what trend is on the price chart and how long it will last, or how to determine the point where this trend will reverse. Mathematical analysis and, consequently, indicators, also answer these two questions.
Well, indicators are of two types:
- Trend indicators are indicators that analyze the price values to identify the trend direction and how long it will last.
- Oscillators are technical analysis indicators that calculate the price values, based on oscillogram to identify the trend pivot points.
In general, if you want to identify the points where the ongoing trend is likely to reverse you should employ an oscillator. But if you want to identify the strength and the duration of the current trend, you need a trend indicator. Basically, almost any oscillator is based on the parameters of the trend indicator. This is because if you want to identify the trend pivot point, you need to find out the parameters of the trend, its strength, duration and direction. It is impossible to identify these parameters without a trend indicator. Oscillators are typically used in conjunction with other technical analysis indicators, like forex swing trading indicator or forex indicator predictor, to make trading decisions.
How to set up an indicator
Well, you know the basics now, let us move on to practice. I will describe how to set up different indicators and how to use them. I will do it on the example of a simple, basic trend indicator, Moving Average (МА). This indicator uses a very simple formula for its calculations. It calculates the average price value and presents the result in the form of dots that are connected with a line on the price chart: Well, let us set the indicator up:
1. First, you open trading terminal and enter the chart of the needed trading instrument. In the given example, it is the EURUSD currency pair;
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2. In the settings of the price chart, click on the Indicators tab;
3. You will see quite a long list of all indicators, available in the trading terminal. You need to select the needed indicator form the list. Find it and click on its name. After that, the indicator will be attached to the chart.
4. To close the indicator menu, click on the Х icon in the top right corner.
As you see from the above figure, the indicator looks like a blue line that goes through the price chart and often crosses it. These points where the line touches or crosses the chart are the major points in the indicator work.
They determine the direction and the strength of the trend, prevailing on the price chart at the moment. If the price chart breaks through the indicator line from below, the upward trend starts. If the price chart breaks through the indicator line from above, the downward trend starts. The father is the price chart from the indicator line, the stronger is the ongoing trend. If the instrument is trading in the sideways trend, the indicator line will be in the middle of the trading grange. We, we have attached the indicator to the chart, let us see its settings;
5. To open the indicator settings menu, right-click on the indicator line and select the settings tab.
6. The indicator settings window will open. In the upper menu, click on the Style section, for a start.
7. You will be offered to select the color, red, for example.
8. Next, you chose the thickness of the indicator line. Based on my own experience, you’d better adjust the line thickness to the averaging period, which we will set up further.
9. Next, you choose the indicator visualization. By default, it is Line
10. The next step is the Inputs tab
11. You can adjust three parameters. The first and the most important of them is Length, or, as it is called in technical analysis, averaging period. This value denotes the number of time periods in the chart for which the average price value will be calculated.
As you already know, they period of time, analyzed in the chart, is called timeframe. So, if it is H1 or 1 hour, then with the length of 21, the average price value will be calculated every 21 hours. These dots will be joined by a line that is represented in the price chart. You should be extremely careful when choosing the averaging period because it determines the form of the indicator line and, and so, it determines how fast and accurately the indicator will respond to the price changes.
You don’t choose the parameter randomly. However, many newbies set this parameter intuitively. Of course, there is a chance that you will be right, but you’d better trust the laws of mathematics. Well, the averaging period for all indicators of mathematical analysis is calculated based on Fibonacci sequence.
The Fibonacci Sequence is the series of numbers: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, … The next number is found by adding up the two numbers before it. It was named after the Medieval mathematician Leonardo of Pisa better known by his nickname Fibonacci.
Well, most ratios in technical analysis are calculated based on this sequence. Furthermore, such concepts of trend and correction are found out according to the rules of Fibonacci Golden Ratio. As you may guess, averaging periods for indicators in early mathematical analysis were equal to the numbers of Fibonacci series. Later, there was developed another method to identify the period, based in the number of stock exchange working days, divided into periods: a trading week is 5 days, 2 weeks are 10 days, a trading year is about 200 days.
May be, that is why, the most often period for an exponential moving average in the daily chart D1 is 200-day, that is with the period of 200 days. I have said many times that I am a strong opponent of modern technical analysis and prefer the “old school”. Therefore, I use only the first methodology and no other one. So, by default, the period is 9. There is no such a number in the Fibonacci series, so it must be changed. It should be determined by the task, you set for the indicator. If you want the indicator to respond to the price changes more vividly, choose a shorter period, if you want a smoother reaction, choose a longer period. I suggest setting the most universal period of 21.
12. Next, there is another parameter that influences the way the indicator looks, it is Source. It denotes the price, based on which the parameters will be analyzed to calculate the average price. As you know, there are four types of price for a period: close, open, high and low. You can use one of this values, a few of them or all the four ones. Many don’t know that this parameter also determines the final outcome. If you select the close price, it will be more convenient to monitor the trend exhaustion; if you choose the open price, you will see more clearly the beginning of a new trend.
13. The third variable is the so-called deviation or the Offset. This parameter shifts the line horizontally by the number of periods indicated in the value box.
14. After you complete the setting, click on the OK button.
Now, the chart looks differently, and due to the longer period length, it filters out the price noise.
So, the indicator has been set up. Now, let us study how to use it and other indicators in trading.
Trend indicator Moving Average
The indicator itself has been already described above. Let us see how this indicator works.
When the price chart breaks through the indicator line from above, it indicates that a downtrend starts. It makes no sense to use it as a signal because it breaks through rather frequently. The trend ends when the chart breaks through the line in the opposite direction. If you have chosen the averaging period correctly, the indicator may serve as a trendline, a support in the uptrend, or a resistance in the downtrend,
When the price chart breaks through the indicator line downside, an uptrend starts. This trend will continue until the price breaks through the indicator line in the opposite direction.
- It is the most simple trend indicator
- You can identify both global and local trends
- It can be used as a trendline
- It can be used in any intervals of time
- It doesn’t provide entry signals
- It works only with a strong trend
- Frequent crossings with the trend slowing down.
- Trend reversal signals are lagging
- Trends change signals are late.
Oscillator “Relative Strength Index” (RSI)
Unlike trend indicators, this is an oscillator, and so, it is designed to send signals to enter and exit a trade.
Its work principle is quite simple. The first you need to know is that this indicator refers to zones, that is, it uses the zones through which the indicator line goes. When the indicator line goes through these zones, it means that there is an entry/exit signal.
By the way, the indicator line itself is a moving average, but with more detailed settings, in particular, it is an exponential moving average. The indicator’s area is divided into three zones: overbought zone (above level 70), oversold zone (below 30), and the trading corridor (zone between levels 30 and 70). It is suggested that the trade is relevant only when the indicator line is inside the trading corridor.
A sell signal is sent when the indicator line, which was in the overbought zone before (above level 70), breaks through level 70 from above and enter the trading range (sell zone 1,2,3,4). You need to take profit when the indicator reaches the oversold zone (level 30) and enters it (profit 1,2,3). A stop loss is basically not suggested as, if the indicator breaks through level 70 from below, the sell signal will be canceled and one should exit the sell trade. However, it is impossible to predict this in advance.
A buy signal is sent in the same way as a sell one, when the indicator line, which was in the oversold zone (below level 30), breaks out level 30 from below and enters the trading corridor. You should take profits when the indicator line reaches the overbought zone (level 70) and enters it. The stop loss is also not suggegsted, the exit rule is similar to the sell trade.
- It is the simplest and the most popular indicator
- The zones can be corrected to filter out the market noise
- You can accumulate positions
- It often sends signals in shorter timeframes
- Great error in indications
- It strongly depends on the accuracy of the averaging period settings
- It works only with a strong trend
- Entry signals are often lagging
- Trends change signals are late.
Trend indicator Bollinger Bands (BB)
The indicator, like many others, is basically used to indicate the ongoing trend. The indicator not only identifies the points of possible trend reversal, but it also indicates the strength and the likely duration of the trend. This is possible because it applies not a single EMA, but three ones. The moving averages are placed so that the price chart is inside a corridor with two borders and the signal middle line. A combination of several EMAs provides a reversal signal much earlier than the application of a standard moving average. But there are some other advantages of BB over MA. Indicator may send quite accurate entry signals based on a reversal signal, it also sends signals for taking the profit in two ways.тенденции, а также выдавать сигналы о фиксации прибыли сразу в двух вариантах.
A sell signal is sent when the price chart breaks through the indicator upper band, and at least two Japanese candlesticks in a trading period have closed beyond the corridor (sell 2.4.6). You can fix the profit in two ways. First, you take the profit when the price, following a sell signal, reaches the level of the middle line (tp 2.1,4.1,6.1). Second, you take the profit when the price, having entered the corridor, reaches the opposite border of the corridor (tp 2.2,4.2,6.2). A stop loss is not designed as, when the price again breaks the upper channel border in the opposite direction, the sell signal will be canceled and the sell trade must be exited; but it is impossible to know in advance when this will happen.
A buy signal is sent when when the price chart breaks through the indicator lower band, and at least two Japanese candlesticks in a trading period have closed beyond the corridor (buy 1,3,5). You can fix the profit in two ways. First, you take the profit when the price, following a sell signal, reaches the level of the middle line (tp 1,3.1,5.1). Second, you take the profit when the price, having entered the corridor, reaches the opposite border of the corridor (tp 1.2,3.2,5.2). A stop loss is not suggested, and the rule to exit a trade is similar to that of a sell order.
- It has more functions than a MA;
- It provides entry signals
- It has two options to take profit
- It can identify the trend strength
- Large error in indications
- It works only in the strong trend
- It doesn’t work during a flat
- It is strongly influenced by the noise fluctuations
- Entry signals are often lagging
This is another oscillator, and so, it is designed to send entry and exit signals
Its work principle is quite simple and it is similar to the RSI. It also uses the zones, which the indicator lines go through. When the indicator lines go through these zones, it is a signal to enter/exit a trade.
The indicator lines are 2 EMAs with different averaging periods, which are set so that one of then is fast and another is slow. All the indicator area is divided into three zones: overbought zone (above level 80), oversold zone (below level 20), and the trading range (zone between 20 and 80). According to the developers, a trade is relevant only when the indicator line is inside the trading range, and one more condition is met, which I will specify a little later.
A sell signal is sent when the faster line (a blue one), having been in the overbought zone (above level 80), breaks through the slower one (red) from above, and they both break through level 80 and go inside the trading range. You need to take profit when the faster line breaks through the slower one from below, the line may not reach the oversold zone (level 20) and enter it. A stop loss is not suggested, as when the fast line crosses the slow one in the opposite direction, the sell signal will be canceled and trade should be exited.
A buy signal is sent when the faster line (blue), having been in the oversold zone (below level 20), breaks through the slower one (red) from below, and they both break through level 20 from below and move inside the trading range. You need to take profit when the faster line breaks through the slower on from above, but it is not necessary that they line must reach the overbought zone (level 80) and entered it. The stop loss is not set, as when the fast line breaks through the slow one in the opposite direction, the buy signal will be canceled and the trade should be exited.
The above chart represents possible signals sent by the indicator with the basic settings of the averaging period. Out of many trades, there are only 3 more or less acceptable ones, and others must be filtered out. The chart below presents the same part of the chart with the stochastic indicator but with different settings of the averaging period:
Therefore, just having changed the values for the averaging periods, we made the chart changes more gradual and smoother, and, what is more important, there are already 6 good trades instead of three and just a couple to filter off. So, to make the indicator work to your advantage, you рфму to spend some time altering its settings and adjusting it to your trading style.
- It is quite an accurate oscillator
- The zones can be corrected to filter out market noise
- The periods can be corrected to smooth the chart
- It sends quite often signals
- It needs some fine tuning
- It sends the signal to exit the trade too early
- The positions must be constantly monitored
Trend indicator Alligator
This indicator is also one of the basic forex trading indicators and, like the previous tools, is quite simple and is based on the principle of the trend reversal. The tool was developed by Bill Williams, it operates according to reversal signals sent by three exponential moving averages (EMA). The indicator basically aims at sending signals about the trend reversal and entry signals; but it also can indicate the strength the duration of the ongoing trend.
The indicator uses three EMAs with different averaging periods: blue EMA — 21, red EMA-13 and green EMA -8. A reversal signal, and so, an entry signal is sent when all the three EMAs meet.
A sell signal is sent when the green and the red Mas break through the blue MA downside, and the green MA must also break through the red MA downside. You should take the profit when the green MA breaks through the red one in the opposite direction, and they both break through the blue line upside. A stop loss is basically a take profit as an exit signal is when the green line breaks through the red one in the opposite direction.
A buy signal is sent when the green and the red MAs break through the blue MA upside, and the green MA must also break through the red MA upside. You should take the profit when the green MA breaks through the red one in the opposite direction, and they both break through the blue line downside. A stop loss is basically a take profit as an exit signal is when the green and the red lines cross each other in the opposite direction.
Силу тренда индикатор показывает величиной расстояния между всеми 3-мя
The trend strength is indicated by the distance between all the three MAs. If the distance between the lines is long, the trend is strong and it should continue for some time. If the MAs are close to each other, the market is at the stage of the trend exhaustion or a sideways trend.
Finally, I’d like to offer my own custom settings of the indicator that provide earlier signals to enter a trade. If you look at the above chart, you’ll see that the indicator sends entry signals with a great lag, and we miss about one third of the trend.
And now, look at the chart with the indicator but with different settings. Trades look alike but the entry signal is sent much earlier. It is because I adjusted one more parameter, shift. I set negative values in the shift box for the two signal EMAs. So, they shifted to the left for a particular number of periods and started sending signals about their crossing earlier. Therefore, the signal is sent two or three periods earlier. In the timeframes of H4 and longer, it is a great advantage and may add to your profit 2000–3000 pips more.
- It is quite simple
- Signals are stable
- The profit may be sometimes far more than the invested funds
- It works in any timeframe
- Entry signals are often lagging
- The final result strongly depends on the number of trades
- Positions must constantly monitored
- You can’t use pending orders
This indicator relates to both types; it can serve both as an oscillator, that is, send entry signals, and as a trend indicator, that is, indicate the trend and its strength.
This forex price prediction indicator relates to both types of indicators, it can serve as an oscillator, that is, provide entry signals, and as a trend indicator, indicate the trend and its strength.
Its work principle is very simple. The basic settings of the forex prediction indicator mt4 are like those of an oscillator, and so, it is not attached to the price chart, it is located in a separate window below it. Its work is similar to the basic functions of the MACD oscillator
Индикатор маржинальных зон. NKZmaker.PRO
The signals are based on the supply and demand balance line (0). A standard EMA crosses this line and sells entry and exit signals. When the line is above 0, the trend is upward. When the indicator line is below 0, the price is trending down. You see that it is as simple as possible, and sometimes, it is not clear if this forex indicator works or not. It is very popular among beginner traders because its is very simple.
A sell signal is sent when the indicator line, which was above 0 level, goes down below level 0 (red zone). You need to take profit when the indicator line reaches level 0 from below (the end of the red zone. You don’t set a stop loss as, when the line goes back above zero level, the sell signal will be canceled and you must exit the trade.
A buy signal is sent in a similar way, when the indicator line, having been below level 0, goes up above the zero level (green zone). You should take profit when the indicator line reaches level 0 upside (the end of the green zone). You don’t set a stop loss here too and the rules to exit the trade are similar to those of a sell trade.
- It is the simplest indicator
- You can adjust the visualization of the indicator line
- Signal are clear
- Часто выдает сигналы на малых таймфреймах;
- It works well in flat
- Great error in indications
- It sends quality signals only in the strong trend
- It strongly depends on the averaging period settings
- Entry signals are often lagging
Of course, this is not a full list of popular mathematical indicators. But these indicators should be enough to develop a trading strategy. As for me, I believe that forex indicator strategy has much more drawbacks than advantages. The biggest drawback of any forex prediction indicator mt4 is a constant lag, which can not be avoided. That is why, I, myself, prefer strategies without indicators.
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Индикатор Пликове. описание — Индикатори 2022 — Forex
Индикатор Пликове прилича на линия на Болинджър, но има някои разлики. Много често търговците го наричат индикатор на «Плик». Индикаторът се базира на теорията, че равнището на цените, след кратко колебание да се върне в определен диапазон.
Както знаете, равнището на цените през повечето време е в спокойно състояние. Екстремни удари са в резултат на твърде много активност от страна на големите търговци, след спокоен, че равнището на цените става на стойност, която е икономически обосновано. допълнително ниво на цените е отстранен от основата на тенденцията, толкова повече спекуланти да затворят сделката, като по този начин стойността си до нормално състояние.
описание на индикатора Пликове
От показател техническа гледна точка Пликове е съвкупност от две пълзящи средни, които са отстранени от основната пълзяща средна на определено разстояние. Плъзгащи се образуват нещо като коридор, който граници варират в зависимост от волатилността на валутната двойка. Двете прости пълзящи средни имат период 14, но леко отклонение от 0.1%, при което линиите са успоредни една на друга и не се припокриват индикатор druga.Linii изчислява чрез следните формули:
Настройка на коефициента на плика се извършва при стриктно спазване на средната волатилността на валутната двойка, така че 95% от свещи разположен във вътрешността на коридора. Чрез този канал показва максимално равновесие цената.
Показател Пликове описание е завършена, сега трябва да преминем към това как да се инсталира и конфигурира.
Прочетете — Forex коментари за обучение
Как да настроите индикатора
Индикатор за изтегляне Пликове можете да използвате връзки, публикувани nizhe.Ego монтаж в MetaTrader 4 се извършва в съответствие със стандартен схема: разархивирайте документа, копирате файлове и да ги поставите на адреса: «Каталог на файла / Open Data / MQL4 / Индикатори». След това направете рестартиране MetaTrader 4 и да индикаторът се появява в прозореца «Навигатор» при откриването на предварително график.
Пликове Настройки на показателя за
След това ще се появи следният прозорец:
В раздела «входни параметри», които можете да извърши индикаторни настройка пликовете.
Тунинг индикатор Пликове:
Топ брокери на Русия и света
|1||Brough №1||Brough №1||Brough №1||Brough №1|
|2||Brough №2||Brough №2||Brough №2||Brough №2|
|3||Brough №3||Brough №3||Brough №3||Brough №3|
|4||Brough №4||Brough №4||Brough №4||не|
- MA_Period. Този ред показва броя на свещи за анализ. Колкото по-малка е тази стойност, толкова по-бързо плика, но много малка стойност може да доведе до по-голям брой фалшиви аларми. Увеличете препоръчва при управлението на търговията с времевите рамки на един час или намаляване на броя на барове, които попадат в коридора период.
- Ma_shift. Задава изглаждане фактор.
- MA_Method. Този ред показва вида на пълзяща средна, където цифрата 0 представлява стандартните движат средните 1 — експоненциални и 2 — претеглени.
- Applied_price. Тук можете да зададете отместването стойността на текущата стойност.
- Отклонение. Този ред съдържа коефициента на плик. Този показател отразява разстояние на канала от средното ниво на цените. В този ред, се препоръчва да се определят стойностите на следните диапазони: 0,1-2%.
Ако зададете повече от два процента, в коридора може да получи прекалено широк, и индикаторът ще бъде неефективен. Изместване коридор позволява по-точно да се получи в тази тенденция, което е много важно, когато се търгува валутни двойки с висока волатилност.
Чрез изглаждане, че е възможно да се направи по-коридор течни линии:
Индикатор Уровней Поддержки и Сопротивления для МетаТрейдер
Препоръчва определяне на показателя е вече на графика, да се увеличи ширината на коридора да докато почти всички свещи не са заедно в коридора.
Как да се използва индикаторът за пликове в търговията
Търговията с помощта на индикатор Пликове може да се извърши по три начина, изборът на които си струва да правиш, в зависимост от волатилността на валутната двойка и времевата рамка се използва.
- Търговия с победа. Най-лесният начин за търговия с използване на индикатора — е използването на границите на коридора, тъй като на подкрепа и съпротива линии. Това означава, че се препоръчва да се извърши операцията по време на степента на отпадане от пълзящи средни. Когато цената докосва горната част на линията и разгърнати, трябва да отворите поръчка за продажба, и ако цената се отразява най-долния ред — покупката.
- Използването на цена отклонение от пълзяща средна към границите на канала.
- Има и друг начин на използване, което е използването на показателя като филтър.
Плик Плик дисплеи означава отклонение стойност. В тази връзка той показва нестабилност, до 95%. Търговия с победа не винаги е безопасно, така че има втори начин на провеждане на търга.
Много опитни търговци смятат този метод по-сигурна търговия, като в цената са склонни да се върне към своите средни стойности. Но си струва да припомним, че по време на апартамента се дава много фалшиви сигнали.
С индикатор Пликове, можете да определите плосък пазар. Показателят често се използва за Corral цени в коридора по време на апартамента. По време на консолидацията на пазара е удобно да търгува с победа, но след като цената започва да излиза извън рамките на коридора, е необходимо да затворите всички сделки.
Плюсове индикаторни Пликове
Използването Envelope / Пликове, ще се насладите на следните предимства:
- Точно представяне на границите на тенденцията през апартамента.
- Показани нестабилността, че е много добър в провеждането на търгове в средносрочен план.
- Индикаторът не е преобразена, което елиминира риска от объркване.
индикатор за недостатъци
Поради факта, че индикаторът се основава на пълзящи средни, тя се характеризира с издаването на сигнали с известно закъснение. Този недостатък е особено забележимо при правене на бизнес в кратки времеви рамки.
Заключение: Пликовете Индикаторът — е ефективен инструмент за провеждане на средносрочната търговия, но за търговия не е подходящ за кратки интервали от време. В резултат на моите тестове, индикаторът е ефективен в 60% от случаите. В тази връзка, аз препоръчвам да го използвате в комбинация с други инструменти за технически анализ.
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