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Best Forex Trading Trend Indicators Explain, Beginners Should Know.

This was a good sum up of different trend indicators and how they’re useful. Thanks for taking the time to post it. Other than using indicators, it is also important to analyse and observe the price action of the pairs.
 

Runcinate

Member
Experimenting with different indicators is the key. When we practise several indicators, we come to know what will work for us and what won’t. Combining indicators is a good practice. But that should be done when we know the indicators in detail and how to use them. Combining too many indicators at once becomes a mess.
 

Arrogate

Member
Thanks for this helpful beginner-friendly information. Really appreciate it. How many indicators do you use?
I personally feel like although indicators depend on the strategy we are using, using more than two indicators is the best, for better confirmation and accuracy.
 

WalletInvestor

Well-known member
Experimenting with different indicators is the key. When we practise several indicators, we come to know what will work for us and what won’t. Combining indicators is a good practice. But that should be done when we know the indicators in detail and how to use them. Combining too many indicators at once becomes a mess.

I agree. Also, as market conditions change, indicators may also need some change as well.
 

Dopper

Member
Thanks for this information. Most of the time it becomes difficult for beginners to identify a trend correctly, and often end up chasing a short term price movement, which results in loss. With the help of indicators, beginners can become more sure of the price movement.
 

Pinnace

Member
I would say these are some of the most popular trend indicators that most traders use. My favourites are MA and Parabolic SAR. Well, you explained it in such an easy and elaborative way. Thanks for the knowledge.
 

Bregatte

Member
I use only those indicators that are relevant to my trading. At the beginning of my trading journey, I decided to use seven indicators, and the strategy became horrible. I now use only three because I don't want to ruin my trading because of "stuffing" the indicators.
 

Scarious

Member
Thank you for this informative post, it was a good read. In my experience I have seen the RSI and the ATR performs best for day trading with a time frame of 4H.
 
I use only those indicators that are relevant to my trading. At the beginning of my trading journey, I decided to use seven indicators, and the strategy became horrible. I now use only three because I don't want to ruin my trading because of "stuffing" the indicators.

Yes, that was my case as well in the past. Before it got too late, I decided to use only relevant indicators, deleting several others from my strategy. That was one of the best decisions I made as a beginner, which seriously saved a lot of time (if it were too late, my time and energy would have gone into correcting my mistakes and strategy).
 

Apogee

Member
Any trading strategy with a maximum of three indicators will work wonders. I use MACD with Bollinger Bands with 20 MA.
 

Epedaphic

Member
This is such detailed information provided by you. For every forex trader it is important to know all these indicators before entering the market. It can help traders in making more informed trading decisions.
 

Herisson

Member
I think a beginner should stick to using 2 or 3 simple indicators so that they don’t get confused. Advanced indicators are useful but they may seem complicated to an average beginner. One of my favourite indicators is RSI because it is quite simple yet very helpful to spot good trade setups. The Simple Moving Averages can be an ideal indicator for any beginner. They can switch to MACD later on as it is a little more advanced.
 

Implumou

Member
I think price action sets the foundation when it comes to spotting a trend. When we are trading based on a trend we should also watch out for a reversal that might happen. I use RSI as that helps me to spot the trend reversals easily. I have seen some traders saying that they trade against the trend. But in my opinion, the best approach is respecting the market trend until you are sure about a shift.
 

Racloir

Member
Bollinger bands tops the list for me. It can not only be used as a volatility indicator but also works as a momentum oscillator. Besides providing precise entry levels it even specifies the take profit and stop loss levels. Moreover Bollinger bands are easy to interpret visually.
 

Neology

Active member
Thank you for the insightful post. I would say all beginners should learn and try price action before moving to advanced indicators. There are many forex traders who use pure price action only in their trades. But we can always choose some reliable indicators to make the decision making process easier for us. Fibonacci retracement tool is another advanced indicator that is quite popular among traders.
 
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