Trading Indicators Every Trader Should Know

Here we will look at some of the best Forex Trading indicators and how you can combine them into a simple robust Forex trading strategy for long term gains. Moreover, some most recent external factors like sudden political changes that significantly affect the economy and the market, are not taken into consideration by these indicators; thereby creating wrong projections which can cause possible losses in your end.
The stochastic indicators can warn of when these overbought and oversold levels may be potentially reached, allowing traders to either tighten their stop losses to avoid giving back too much to the market or closing their trades and taking their profits before the market drops and erases any profits they had open.



In this section we have gathered the most popular and effective Forex indicators for MetaTrader 4 and MetaTrader 5. We are continuously improving the range of Forex trader indicators, each indicator contains a detailed description and is available for free download for all LiteForex clients.
The inner working parts of Forex Indicators are generally centered around one mathematical formula, or a small algorithm which is designed to scan over the price action, extract the data, pump it through the internal coding, and output the result in a graphical format on your charts.

You can see from this analysis that, with time period 3 being the most recent 8 hour period, even though the last two points are no longer showing any movement up or down, the simple moving average trend indicated by the average amounts is still upwards.
Fortunately today, people have more economical options to gain access to forex trading signals with the introduction of automated volatility indicators expert advisors; which is software that is able to produce reliable data and analysis to support your trading efficiency.

The Stochastic Indicator follows the theory that: 1) when there's an uptrend, prices will remain either equal to or above the previous period closing price; 2) when there's a downtrend, prices will remain either equal to or below the previous closing price.