Saturday, November 25, 2017

My Best Forex Indicator Choice

March 20, 2010 by  
Filed under Fx Tips

There are over a hundred different indicators that you can use in your trading. As it is pretty impossible for anyone to be able to understand all the various indicators available, I often encountered this question from my blog readers.

What Is The Best Forex Indicator To Use?

In fact, this is also my number one question when I first started trading forex a few years back. After pondering on this question for sometime and after these years of trading and trying. I finally have a set of indicator that I think is the best for me.

But let me tell you the best forex indicator that is voted by numerous forex traders in a forex magazine.

The 200 Exponential Moving Average!

If you take a look at your trading chart, you will often find the price being repelled by the 200 EMA and thus it serves as a very good tool to predict price movement. To make use of the 200 EMA, you can enter a SELL trade if the candle moves below the 200 EMA and you can enter a BUY trade if the candle moves above the 200 EMA.

As for me, these are the indicators that I find the best for me:

1) Moving Average Convergence Divergence (MACD) – The MACD allows me to confirm any breakout and it helps me to validate any trend line break before I enter a trade. This alone saves me a lot of money due to fake outs.

2) Stochastic (SLOW) – I use the stochastic to help me check if the market is currently oversold or overbought. This usually provides me with more confident to enter a trade.

3) Parabolic SAR – This is a visual tool that plots a dot below a candle in an uptrend and a dot above the candle if you are in a downtrend. This also helps to provide me with buy and sell signal.

4) Multiple Moving Averages – I use the 100, 200 and 400 EMAs to help me identify the market trend and I also use them to help me check the strength of the trend.

These are the best forex indicators that I find working for me and my trading strategies. However you have to test them out to see if it fits into your trading plan as well before you put them to use in your trading.


8 Responses to “My Best Forex Indicator Choice”
  1. roberto says:

    it seems like you lot know your stuff
    i wish someone would say WHEN and what currency and at what point/s
    anyone got any HOT trade tips for today or tomorrow?

  2. Eik Pin says:

    which time frame do you use this indicators on ?

    would a 200EMA on a daily chart will be different on a H1?

    • Kelvin says:

      Hi Eik Pin

      In fact, I use these indicators on my 15 minutes, hourly and 4 hour chart. Sometime you will get mix signal from the 200 EMA on the hourly and daily chart, that is when you should wait for confluence between the 2 to give you more confidence in your trading.

  3. Saffiee says:

    Hi, Kelvin.
    I was first struck by your massive and very valuable tips and sharing on Forex trading. Though I am not a full time trader, I find that your trading experience give me a lot of thought and dreaming to a very successful full time trader. I have failed in my trading for 3 years and till now never regained my capital back. But I never want to lost hope and still struggling to learn from my failures. I think I have find the right choice. Your good sharing experience give me hope.
    Thanks for your very valuable tips on the best web site I have ever encountered.
    Saffiee Trunan

    • Kelvin says:

      Hi Saffiee

      I can see your perseverance and this is one attitude that all new traders should learn from. Currency trading is never a smooth path and as long as you don’t give up, you will be able to make it one day. I hope to hear from you again and I am glad to have you reading my site.

  4. Valerie Dezwart says:

    Dear Kelvin,

    This is the 2nd website with a lot of Forex information that I found!
    WOW, I can’t believe it that there are people out there like you.
    Sharing the Trading Strategies etc etc., that ‘s very nice of you.
    I just signed up for your E-book and I’m looking forward to it.
    Was looking actually for some Trading Strategies for the 10 year T-notes Futures; but I’m also very interested in FOREX; want to trade full time.
    Thanks again for this wonderful website!!
    Valerie Dezwart

    • Kelvin says:

      Hi Valerie

      I am glad that you find my blog useful for you and I am happy that you are also looking forward to being able to trade forex full time. Do give yourself sometime to learn the technical analysis as it can be useful for both futures trading and forex trading. Hope to hear from you again.

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