Forex trend indicators
May I please ask about trend lines. Are they also belong to trend indicators. If yes, why you don't mention it here.
Trend lines are not exactly indicators, but rather technical tools. Trend lines are graphical analytical tools, applied by traders without any mathematical formula behind them.
However, you'll be right naming trend lines as indicators if we start speaking about automated trading systems, where even trend lines are drawn by a software.
I just get to kow about your website now and found it very useful for beginners.
Kudos to you for a good job.
Please i need your help, i want you to please give me some free eBooks that explained better about Trend Indicators, and the ones that explained better Oscillators.
I will be very happy if you can help me with it.
Help me send it to jidomis(at)yahoo.com
Jyde. Becoming your FX apprentice.
I don't have any particular e-books on these subjects, unfortunately. I'm sorry.
I think browsing through the maze of Forex websites can bring some results.
I'd like to know if there is an indicator out, so that it may count bars from a low or high point and project out from that low or high eg. 30 60 90 bars and so on. I'd like to be able to pick a number of these highs and lows and start counts from them. So that I may see if a cluster appears eg. 90bars 180bars 360bars 1440bars coming together from various highs and lows at some future point. This is a Gann tech , if anyone can help thanks.
I haven't come across such indicator yet.
thank you for all your help on this forum, I appreciate you immensely. can you please tell me which you'd prefer OsMA or MACD as a trend indicator. Thanks Davids
It won't be right to give reference to any indicator in this case. It'll depend on many variables, such as time frame, currency pair, other indicators you already use for analysis, the type of trading you look to do etc. In some cases it'll be one indicator, in others - another.
I am a new guy. I dont know how to place a pending trade. Pls can any one help?
Pending trades aren't really the subject of our discussion, but.. in order to place a pending order on may platforms you need to Right click anywhere on the price chart and from the pop-up menu select:
"Buy Stop" (to place a pending Buy order above the current price)
"Sell Limit" (to place a pending Sell order above the current price)
"Buy Limit" (to place a pending Buy order below the current price)
"Sell Stop" (to place a pending Sell order below the current price)
If you can't find those types of orders anywhere on your platform, don't be hesitant about asking your broker to help you find it, they'll be glad to show you.
Hello.. On this very page, there's an image of moving averages and they seem to be good..coz i notice that when in a sell position, the lower MA acts as a resisatance and when in buy, the top most MA could give one an option for taking profits?
Could you please tell me what parameters you used?? Thanks.
20, 50 and 200 SMA.
hello im using 2moving average but which inditor can i combine to it to confirm the trend thanks
Forex Trend Indicators Free, Easy Setup, 9 Time Frames
Here are the instructions for setting up the free forex trend indicators on any metatrader platform. The indicators are great forex trading tools and can be used to conduct multiple time frame analysis, follow the trends of the market and our trend based trading plans. The indicators are adaptable to most forex trading and charting systems. These indicators are quite simple but very effective for market analysis.
Instructions For Setup
These instructions are for setting up the forex trend indicator on a Metatrader platform, however experienced traders can set up these simple exponential moving averages on almost any good quality forex charting platform.
1. Open up a Metatrader platform from any broker you wish. A Metatrader platform from any broker is fine.
2. Open up a chart on one pair. One way to do this is to right click on a pair in the quote window and symbol area and click on "chart window" in the drop down menu. The chart will be added to the platform.
3. Go to the top tool bar and there is an icon that looks like a magnifying glass with a + sign. You can click on the + sign twice to magnify the chart. Some personal choice is involved here but if you do this the charts will match the setup we use every day. There are images of this exact setup all over our website to check against so you know you have set the charts up correctly.
4. In the "Navigator" area under "Indicators" right click on "moving average", then click on "attach to a chart".
5. Fill in the fields like this:
Period: 5, ma method: exponential, apply to: close, style: green, line thickness second one from the top.
6. Repeat step number 5 and fill in the fields like this:
Period: 12, ma method: exponential, apply to: close, style; red and line thickness second one from the top.
7. On the "visualization" tab check "all time frames" then click OK.
You now are finished with the setup on one pair for all 9 time frames. Repeat the process for each successive currency pair. It takes about 30 minutes to set up all 28 pairs we follow. If you do this once all of the settings will be saved automatically for all of the pairs.
Forex Trend Indicator Videos
We have a few short videos to show traders how to set up the indicators, if the written instructions above are not clear. The videos will show you the basic setup and some variations of the basic setup including setting up the indicators by individual currency, or using Metatrader profiles. Check out our forex videos page for these short videos.
Forex Trend Indicator Screenshots
After you have installed the trend indicators on Metatrader you can check them against the image below to see if they match. We also have various chart examples all over our website and a chart library on our forex blog, to run further side by side checks. This is what they look like.
Setting Price Alerts
The Metatrader platform has free desktop price alarms built into the platform, these are audible alerts that sound when price levels are breached. You can set them on all 28 pairs we follow. Our forex video library shows you how to set up the audible price alerts. The daily trading plans that we issue work extremely well with the price alarm system. Each trading plan we issue contains specific alarm points across several of the pairs we follow, to monitor for breakouts in the direction of the major trends of the market. Traders can check with your broker on how to get these price alerts delivered to your cell phone.
When the price alarms hit, just check the smaller time frames on the trend indicators along with The Forex Heatmap® for trade entry verification into the major trend or oscillation cycle. Following the trends of the forex market, along with a well prepared trading plan, when combined with good money management, will guide you through the trade entry process into the larger trends of the forex market. These forex trend indicators and audible price alerts are important components of our trading system.
4 Effective Trading Indicators Every Trader Should Know
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When your forex trading adventure begins, you’ll likely be met with a swarm of different methods for trading. However, most trading opportunities can be easily identified with just one of four chart indicators. Once you know how to use the Moving Average, RSI, Stochastic, & MACD indicator, you’ll be well on your way to executing your trading plan like a pro. You’ll also be provided with a free reinforcement tool so that you’ll know how to identify trades using these forex indicators every day.
The Benefits of a Simple Strategy
Traders tend to overcomplicate things when they’re starting out in the forex market. This fact is unfortunate but undeniably true. Traders often feel that a complex trading strategy with many moving parts must be better when they should focus on keeping things as simple as possible. This is because a simple strategy allows for quick reactions and less stress.
If you’re just getting started, you should seek the most effective and simple strategies for identifying trades and stick with that approach.
Discover the Best Forex Indicators for a Simple Strategy
One way to simplify your trading is through a trading plan that includes chart indicators and a few rules as to how you should use those indicators. In keeping with the idea that simple is best, there are four easy indicators you should become familiar with using one or two at a time to identify trading entry and exit points:
- Moving Average
- RSI (Relative Strength Index)
- Slow Stochastic
Once you are trading a live account a simple plan with simple rules will be your best ally.
Using Forex Indicators to Read Charts for Different Market Environments
There are many fundamental factors when determining the value of a currency relative to another currency. Many traders opt to look at the charts as a simplified way to identify trading opportunities – using forex indicators to do so.
When looking at the charts, you’ll notice two common market environments. The two environments are either ranging markets with a strong level of support and resistance , or floor and ceiling that price isn’t breaking through or a trending market where price is steadily moving higher or lower.
Using technical analysis allows you as a trader to identify range bound or trending environments and then find higher probability entries or exits based on their readings. Reading the indicators is as simple as putting them on the chart.
Trading with Moving Averages
One of the best forex indicators for any strategy is moving average. Moving averages make it easier for traders to locate trading opportunities in the direction of the overall trend. When the market is trending up, you can use the moving average or multiple moving averages to identify the trend and the right time to buy or sell.
The moving average is a plotted line that simply measures the average price of a currency pair over a specific period of time, like the last 200 days or year of price action to understand the overall direction.
Learn Forex: GBPUSD Daily Chart - Moving Average
You’ll notice a trade idea was generated above only with adding a few moving averages to the chart. Identifying trade opportunities with moving averages allows you see and trade off of momentum by entering when the currency pair moves in the direction of the moving average, and exiting when it begins to move opposite.
Trading with RSI
The Relative Strength Index or RSI is an oscillator that is simple and helpful in its application. Oscillators like the RSI help you determine when a currency is overbought or oversold, so a reversal is likely. For those who like to ‘buy low and sell high’, the RSI may be the right indicator for you.
The RSI can be used equally well in trending or ranging markets to locate better entry and exit prices. When markets have no clear direction and are ranging, you can take either buy or sell signals like you see above. When markets are trending, it becomes more obvious which direction to trade (one benefit of trend trading ) and you only want to enter in the direction of the trend when the indicator is recovering from extremes.
Because the RSI is an oscillator, it is plotted with values between 0 and 100. The value of 100 is considered overbought and a reversal to the downside is likely whereas the value of 0 is considered oversold and a reversal to the upside is commonplace. If an uptrend has been discovered, you would want to identify the RSI reversing from readings below 30 or oversold before entering back in the direction of the trend.
Trading with Stochastics
Slow stochastics are an oscillator like the RSI that can help you locate overbought or oversold environments, likely making a reversal in price. The unique aspect of trading with the stochastic indicator is the two lines, %K and %D line to signal our entry.
Because the oscillator has the same overbought or oversold readings, you simply look for the %K line to cross above the %D line through the 20 level to identify a solid buy signal in the direction of the trend.
Trading with the Moving Average Convergence & Divergence (MACD)
Sometimes known as the king of oscillators, the MACD c an be used well in trending or ranging markets due to its use of moving averages provide a visual display of changes in momentum.
After you’ve identified the market environment as either ranging or trading, there are two things you want to look for to derive signals from this indictor. First, you want to recognize the lines in relation to the zero line which identify an upward or downward bias of the currency pair. Second, you want to identify a crossover or cross under of the MACD line (Red) to the Signal line (Blue) for a buy or sell trade, respectively.
Like all indicators, the MACD is best coupled with an identified trend or range-bound market. Once you’ve identified the trend, it is best to take crossovers of the MACD line in the direction of the trend. When you’ve entered the trade, you can set stops below the recent price extreme before the crossover, and set a trade limit at twice the amount you’re risking.
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