Indicators are the tools that can help a trader speculate the markets with greater accuracy. But is it the right way to speculate and trigger your orders?
The above question is a tough one. Everything depends on a trader’s strategy and trading manner. The proper implementation and mindset is a must.
The majority of traders place their orders on the MT4 Platform, the most commonly and widely used platform around the globe.
Furthermore, due to the great features that the platform offers, the traders can use a variety of tools before making the decision to place their orders.
Indicators identify momentum, volatility, and the trend
There are indicators used for measuring or identifying the momentum, the volatility, the trend and much more.
There are four main reasons as to why the traders use these type of tools, such as identifying and confirming the overall direction of the trend, and the entry and exit points or levels.
The trend indicators, mostly used, are the Average Directional Movement Index, the Bollinger Bands, the Envelopes, the Ichimoku Kinko Hyo, the Moving Average, the Parabolic SAR, and the Standard Deviation.
When it comes to oscillators, the MACD, the Force Index, the Stochastic Oscillator, the William’s Percentage Range, the Commodity Channel Index, the Relative Strength Index and the Momentum are used.
There are also some custom indicators that a forex trader can download, such as the Center of Gravity (COG) where the major support and resistance levels, as well as the direction of the trend, can be identified.
Other well-known custom indicators are the Zig-Zag tool, the Pivot Points tool, and the Fibos tool where a trader can speculate the markets based on automated adjusted psychological levels without having to place the Fibonacci manually every time.
Moreover, a tactic when using indicators is taking advantage of their lagging and trade them differently instead of using them the way are intended to be used.