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 tools & 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.

While you experiment with those indicators you will discover that they can have various settings and change their accuracy and behavior depending on the time frame and currency pair you try to use them for.

Don't be afraid to experiment until you find the best combination.
Let us also suggest you some initial settings to start your experiments with.
For EMA try next:
200 EMA - famous one, is respected by price on any time frame.
50 EMA - good one,
20 EMA - again on the favorite list

For Stochastic you will find that there are Fast Stochastic, Slow Stochastic, Full Stochastic and even Stochastic RSI (the last one is a different story). Chose either Full or Slow Stochastic and try next settings:
14, 3, 3 - standard settings
5, 3, 3 - popular settings

There you go - you now have basic tools and a base to start developing your Forex trading skills and building own Forex trading system.

As you knowledge and experience grow, EMA and Stochastic indicators could eventually yield their primary posts to your new favorite tools, but even then they won't lose their importance as they never do for many experienced Forex traders.


Comments

  • trader

thank you!

  • trader

fantastic

  • trader

Eye opener for newbie like me.

  • trader

I would appreciate if you could enlighten me on the differences between the Stochastic RSI indicator (which I am currently using) against the combination pair of Stochastic and RSI as recommended by you. Would the latter one be more accurate than the other?

  • FxIndicators

Stochastic RSI is an RSI indicator is calculated based on Stochastic formula.
Regular RSI will not look anywhere similar to the Stochastic RSI, but
Regular Stochastic will look pretty similar to Stochastic RSI.

If to take 14 period Stochastic and 14 period Stochastic RSI - they tell the same story, with the exception that Stochastic RSI is able to show oversold/overbought levels a bit better.
Stoch RSI may combine values of both indicators, but there isn't much innovation in interpretation of the market. That's my opinion. I such cases I'd rather work with classic indicators, which are used by the majority of Forex traders.

  • trader

yes this is true

  • trader

What settings for the RSI would you use to compliment the settings of 5 3 3, for stochastic you already mentioned?

  • FxIndicators

It would be RSI 5.
If to use Stochastic 14, it would be RSI 14 period.

  • trader

I use Stochastic, MACD and Bollinger Bands for trading. I use them all at the same time.

For stochastic the 15, 5 ,5 setting works best for me. It shows less opportunities but the ones it does show are more reliable.

I am suprised not to see the bollinger bands in the top 3. I would not start currency day trading without it.

Great post by the way.

  • trader

yes....yes...yes

  • trader

What about Fibonacci? I think its quite good

  • trader

Thanks for this information.

  • trader

Great work.

  • trader

thousand's of thanks...

  • trader

good webpage... and guide very very easy... and my mind very likely this page... i like, cci and rsi other one is stochastic indicators...guide is vvvvvvery gggggood...thanks all dears...

  • trader

Hello can you explain how to trade fx binary options. What are the signals to be used?

  • trader

Do not forget the Pivot points very useful too

  • trader

I like to use adx (14) and stoch (14,3,3) to decide when to enter the market, and the atr helps me to figure out the exact moment (when there is less volatility and something huge is going to happen). That system works great for trend-following.

Nice site! I've read a lot of pages already and I'm loving it all. Keep up the good work!

  • trader

i never saw any site near to it good work continue it

  • trader

what do you suggest for moving average and with what period combination?

  • trader

Good but Fibonacci Retracement is the best

  • trader

I am a newbie, never traded before. I am just trying to find basic info. about trading the forex mkts. All i seem to find are the different systems, set ups, trading plans, etc. I need to have things explained to me from the ground up, such as the different indicators, osccilators, their differences and examples of how to use them. Also I need to know and understand how and when to place the different orders used in forex trading. Any suggestions on perhaps a good book or videos? Anyway thanks and I appreciate any response's.

  • trader

Best FOREX indicator site on the net. You guys are the best! Now if you ever branch out into fundamentals as well you would be the King of Forex!

  • trader

I am a newbie, I like to suggest for a new threat on teaching MT4 coding

  • trader

hello please can you elaborate how to combine MACD and stochastic signals

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