Tuesday, April 8, 2008

What indicators to start with in Forex

Forex Trading platforms now are blooming with various indicators, where each indicator offers a different study of the market. For novice traders this variety of choices can create problem of which indicator to choose, where to start from.

There are couple of common Forex indicators that a Forex beginner may start with:

A. Moving averages: exponential, slow, weighted etc. Moving averages smooth out the data providing the clues about market directions.

B. Stochastic: slow, fast, full. Stochastic is a great indicator that shows market overbought, oversold states, and trend changes.

C. RSI: is an oscillator which works similar to stochastic.

D. MACD: moving averages convergence, divergence. An indicator that has many qualities, the main of which is to show divergence between the price and indicator readings.

So here you have four Forex indicators to start your tests with.
Good luck!
 
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