How to choose the best combination of Forex indicators

The goal is to pick the best indicators set. The challenge is to combine indicators in a smart way. This means that indicators should deliver different type of information about the market and confirm each other rather than duplicate signals.

When two or more indicators provide identical information about prices, it hardly ever helps trading better; and while Forex traders call it "signal confirmation", it is in reality could be the same type of data, and should be called "duplication", rather than "confirmation". When money is at stake, the problem becomes serious…

Two most popular Forex indicators

Variety of Forex indicators available on advanced Forex trading platforms can sometimes create a challenge even for an experienced Forex trader. To control the situation traders need to choose only useful primary tools in order to avoid information overflow.

Especially if you are a novice trader, we'd like to suggest you two most popular and widely used indicators to start planning your trades with.
These are: Moving Averages and Stochastic indicator.

The third place goes to MACD.

Elliott Waves

Elliott waves are one of the few studies that able to tell where the market is now, where it is likely to go next and, of course, what are the opportunities there for traders.

However, it's not a secret that to many traders Elliott waves theory is one the most difficult studies whether it comes to understanding, using it or following someone's forecast. We'll discover why.

Elliott Waves Basics
Elliott Wave Patterns
Elliott Wave Rules
Elliott Waves Indicators
Elliott Waves - Beginner steps
Elliott Waves - Trading plan
Elliott waves and Fibonacci
Elliott waves - Fibonacci click-by-click
Elliott waves and Bollinger bands

How to install MT4 indicators

To download an indicator from

1. Right click on the indicator link
2. Choose "Save as" or "Save link as" to download the indicator.

To install your newly downloaded indicator to MT4, please use the following steps:

1. Close Metatrader4.
2. Place your new indicator into the MetaTrader "/Experts/Indicators" folder.
3. Run Metatrader4.

Bollinger Bands®

Bollinger Bands – a simple yet powerful indicator, ideal for traders who like visual style of trading.
Volatility Indicators - Bollinger bands Forex

Bollinger Bands: quick summary

Created by John Bollinger, the Bollinger Bands indicator measures market volatility and provides a lot of useful information:
- trend direction
- trend continuation or pausing
- periods of market consolidation
- periods of upcoming large volatility breakouts
- relative market tops and bottoms and price targets.


MACD Indicators Forex


Forex MT4 2 line MACDDownload: 2line_MACD.mq4
Forex MT5 2 line MACDDownload: 2line_MACD_DL.mq5

MACD Quick Summary

Trading with MACD indicator includes the following signals:

MACD lines crossover — a trend is changing
MACD historam staying above zero line — market is bullish, below — bearish.
MACD histogram flipping over zero line — confirmation of a strength of a current trend.
MACD histogram diverges from price on the chart — signal of an upcoming reversal.

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