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What are the top 5 most consistent and widely used indicators on the forex?

Looking for an experienced or cited answer as to what the most consistent and widely used indicators are for the forex markets, and what the most popular time frame is. I usually trade the 1 hour, but I’m not sure if that is best or not.

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6 Responses to “What are the top 5 most consistent and widely used indicators on the forex?”

  1. An said :
  2. maxatkur83 said :

    No Forex trader canasnwer this quesion as tradrs use different stratetiges, approach, techniques, analysis and indicaters. Using tim frame depends on your strategy and trding style. If you agressive trder use H1 or H4, if you are long-term investor use Daily or weekly chart.

  3. Bitstorm said :

    here’s a straight forward answer:

    – at least the 1hr chart, the larger the timeframe the more reliable signals become because it holds more (economic or not) information. 4hr and daily charts are also popular…

    – The indicators: try to keep your mind off of mechanical systems since the market is an organic process. Price is the ultimate indicator and moves in waves but nonetheless in a direction. You therefore need indicators that approach the organic nature of the market as much as possible. Moving averages, bollinger bands and fibonacci are actually all you need directionwise and then you could use oscillators (stochastics, RSI, CCI, MACD) and/or candlepatterns for entries. Keep in mind that oscillators such as RSI, MACD and CCI can also serve as trend indicators.

    The indicators i mentioned are the most popular ones.
    Doesn’t have to be more than that, just don’t clutter the charts, gl….

    TIP: never be afraid to use those indicators with your own common sense and logic. Doing a backtest will help find a setup that works best for you.

  4. Daniel said :

    Listen up. Do yourself a real favor and start using Metatrader Expert Advisors to do your forex trading for you – best tip anyone ever gave me:

    http://CompareExpertAdvisors.blogspot.com

  5. Suzane P said :

    Exponential Moving Average (EMA) – Here, in exponential moving average indicator the averages are calculated with the recent forex rates carrying more weight in the overall average; for example: In a 10-day exponential moving average, the last 5 days will have more effect on the average than the first 5 days. The idea is to use the most recent data as a better indication of trend direction. This moving average reacts faster to recent price changes than a simple moving average. The 12- and 26-day EMAs are the most popular short-term averages, and they are used to create indicators like the moving average convergence divergence (MACD) and the percentage price oscillator (PPO). In general, the 50- and 200-day EMAs are used as signals of long-term trends.

    Bollinger Bands – The basic interpretation of Bollinger Bands is that, the prices tend to stay within the upper and lower bands. The Bollinger Bands have unique characteristic that the spacing between the bands varies based on the volatility of the currency prices. During high volatility periods, the bands widen to become more forgiving. Similarly during periods of low volatility, the bands narrow to contain currency prices. The bands are draw with two standard deviations above and below a SMA. They indicate a “sell” when above the moving average (or close to the upper band) and a “buy” when below it (or close to the lower band). The bands are used by some forex traders in conjunction with other analyses, including RSI, MACD, CCI, and Rate of Change.

    MACD – Moving Average Convergence/Divergence – Consists of two exponential moving averages that are plotted against the zero line. The zero line represents the times the values of the two moving averages are identical. The MACD is calculated by subtracting a 26-day moving average of a currency’s price from a 12-day moving average of its price. The result is an indicator that oscillates above and below zero. When the MACD is above zero, it means the 12-day moving average is higher than the 26-day moving average. This is bullish as it shows that current expectations (i.e., the 12-day moving average) are more bullish than previous expectations (i.e., the 26-day average). This implies a bullish, or upward, shift in the forex rate. When the MACD falls below zero, it means that the 12-day moving average is less than the 26-day moving average, implying a bearish shift in the currency.

    Read more at: http://forexmoneymaker.blog.com/3554125/

  6. Dee Dee said :

    A lot of people use Bollinger Bands like Suzane describes and a lot of the times when price hits the upper or lower band it does revert to the mean (go back to the moving average or middle band). What I really like is the pattern when prices walks up or down the band–that is a very strong pattern and a real money earner. At bb4x.com there are some bollinger band guidelines under the tutorial that really keep you on the right side of a trade.




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