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Trading Indicators play an important role in Forex trading. These indicators make trading charts more readable but too many indicators can create confusion to your charts and ultimately you may lose some good trading opportunities. You should go with the classic tools that must include Pivots, S&R, Chart Patterns and Moving Averages. There are lots of techniques that oscillate between pendulum and an advanced harmonics but people usually complicate their trading by creating messy affairs. There is no “holy grail” in the forex markets, it cannot and it would not be in future. The sooner you accept this fact, the earlier you will become a profitable trader by just putting right tools on the charts. These are some indicators/tools that people should prefer to make a profitable trading: Multi Time Frame Approach: Forex market is extremely simple if you know the right approach to implement at the right time. It happens sometimes in the markets that because of the false moves in smaller time frames, the trades go against the major trends of higher frames. What some people do is, they trade the chart 4H and look forward to every next day directions concentrating on monthly or weekly just to find out any longer trend. Pivots: It is used to predict high and low points of trading of the current day by using previous day high, low and closing prices. Moving Averages: Most of the time people usually use the 9, 21, 50 and 200 Exponential Period Moving Averages that are plotted on the charts. For example- if a trader is looking at the 4H chart to make entry and exit then he will also plot the MA’s having higher time frames from Daily, Weekly or Monthly on that chart. Hence, this approach enables someone to get into more the levels at which price usually get stuck. RSI: Trader using this tool as a divergence tool sometimes, to stop adding winning position when trades either get overbought or oversold and take decisions by applying Support & Resistance Levels. MACD: You may go with MACD tool when you want to trade in higher time frames like monthly, weekly or may be daily for spotting the divergences. Bollinger: This is the tool you can use when you feel like betting against the trend or when you need to take counter trend positions. Research says, more than half of the total trader’s ratio is using these tools that are helping them to get to know as much as 80 percent of market movements. Even you can be a count in that ratio and may get surprised on getting positive results just by using these awesome indicators or tools! Visit us at :-http://www.fideliscm.com
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