Forex Indicators

Become a better trader with Forex Indicators… We created a list of the best Forex Indicators we used over the years, from basic indicators to more complex.

Usually when it comes to Indicators, traders are looking for one custom indicator that will do all the job, but it’s not working like that and they will usually lose all of their money.
They right approach is to combine several indicators or add one of the indicators covered here to a specific strategy and make it more accurate.

We can assure you that all the forex indicators we covered here have been used (or still using) by us or by other advanced traders around the world.

 

ZigZag

ZigZag is another technical tool available on mt4 and it is not necessary an indicator but rather a mean to smooth out all the candles on your chart. Since is just a line on your chart that turns when the market reverses, it can help you see the bigger picture and spot support/resistance areas. It is also worth to mention that it has not any predictive power, so using it alone won’t help you spot ...[Read More]

Heiken Ashi

Altough on the mt4 platform Heiken Ashi is included in the indicators list, it represent a different version of Japanesse candlesticks. It’s goal is to filter some of the noise that the traditional candlestick generate and to give a clearer picture of the price action and the order flow behind it. Calculation Haiken Ashi – Close=(open(c) + high (c) + low(c) + close(c))/4 Haiken Ashi – Open=(Haiken...[Read More]

Awesome Oscillator

Awesome Oscillator is an indicator developed by Bill Williams and basically it represents a 34-period simple moving average, plotted through the bars midpoints and it calculates the difference between the 34 SMA and a 5 SMA. It is also worth to mention that it is an indicator used to measure market momentum.   Calculation AO=(SMA(High+Low)/2,  5 Periods) – (SMA(High+Low)/2, 34 Periods)  ...[Read More]

Alligator

Another indicator developed by Bill Williams is Alligator, which represents a combination of moving averages that use fractal geometry and nonlinear dynamics. It consists of three lines: Blue line(Alligator’s jaw) Red line(Alligator’s teeth) Green line(Alligator’s lips) Calculation formula Median price=(high+low)/2 Blue line=SMMA(Median price,13,8) Red line=SMMA(Median price,8,5) Green line=SMMA(M...[Read More]

Accelerator

Accelerator is another oscillator developed by Bill Williams and basically it measures acceleration and deceleration of the current driving force in the market. Williams made this indicator based on the following principle: Price is the latest element of change and prior to price changes, the driving force in the market changes its direction also. So, Accelerator Indicator will change direction be...[Read More]

Volumes

This is a technical indicator that can be used to identify support and resistance levels as well as estimate future support/resistance levels. It also  shows the volume for a particular range based on the closing prices. Basically it appears on the bottom of the chart as two colors bars. Calculation Volumes value is based on the entire period displayed on the chart. Here are the steps to calculate...[Read More]

OsMA (Oscillator of Moving Average)

The Oscillator of Moving Average or OsMA is a variation of MACD indicator that we’ve discussed in one of our previous articles and it is an indicator that measures the momentum of price action. As with the MACD,it is calculated by taking the difference between two moving averages(a shorter-term moving average and a longer-term moving average). The most common values are 12 period MA and 26 period ...[Read More]

On Balance Volume(OBV)

On Balance Volume is a technical indicator developed by Joe Granville and described in his book, Granville’s New Key to Stock Market Profits, published in 1963. It measures buying and selling pressure by adding up volume in bullish days and substracts volume in bearish days. We also have to mention that it is one of the first indicators to measure positive and negative volume flow.   Calculat...[Read More]

Money Flow Index(MFI)

Money Flow Index or MFI is a technical indicator that measures buying or selling pressure by measuring price and volume. Similar to Stochastic Oscillator, MFI generates a value between 0-100. Also, it has an overbought area(80) and a oversold area(20). A rising value of MFI suggests an increase in buying pressure while a decreasing value of MFI suggests an increase in the selling pressure. Calcula...[Read More]

Accumulation/Distribution

Accumulation/Distribution is a volume-based indicator developed by Marc Chaikin,designed to measure the order flow of a certain security. Calculation A multiplier is calculated based on the relationship between the close and high-low range.Then, the Money Flow Multiplier is multiplied by the period’s volume to come up.A running total of  the Money Flow Volume  forms the actual Accumulation/Distrib...[Read More]

Relative Vigor Index

Relative Vigor Index is an oscillator that we want to discuss in this material. His creator is unknown but it is designed very similar to the Stochastic oscillator except to the fact that the closing price is compared with the opening price rather than the low price for the selected period of time. It is being used spot direction shifts in the market and as a confirmation of the current trend. Rel...[Read More]

Force Index

Another indicator developed by Alexander Elder and also described in his book, Trading for a Living, is Force Index. It is a technical indicator that uses price and volume to determine the power behind a move or to spot turning points in the market. Acording to Alexander Elder, there are three main elements of a security price movement: Direction Extent Force Index tries to combine those three ele...[Read More]

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