Forex Trading With Indicators

Financial indicators can be a stunning help to any trader’s toolset. With the sheer number of Forex indicators out there at the moment, many of which are prop trader available free on charting programs and software, there would be a fair question to ask whether or not they will work.
Most traders use one or two separate indicators to give them some indication of what is going to happen with a particular currency pair. As professional traders will tell you, basing trading decisions solely on the analysis of one indicator is one of the easiest ways to fail in the industry.
Additionally, these people will tell you that applying six or seven different indicators to one chart is absolute overkill, and will only work to confuse you and make life a whole lot harder.
So what should you do? If you want to trade with the help of indicators, how many should you use, and which ones should they be? Let’s take a look at the answer to this question now.
The Most Popular Indicators
At the last count, there were approximately 1000 indicators available to apply to any foreign-exchange chart. This adds to the confusion, and leads us to the question of which ones are the best to use?
Throughout time, experience has shown us that the most popular indicators are the LEGENDAFX (moving average convergence divergence), the RSI (relative strength index), the Stochastic oscillator, and something called “Pivot Points”.
Take a look at the indicators section on your charting platform, and the chances are that you will probably see all of these things listed either right at the top, or throughout the list of indicators. Whilst some people play around with the settings of these indicators, for beginners we would recommend that you stick with the default settings set by your charting provider.
By doing this, you will have the best chance of being able to utilise the indicator, without being misled by inappropriate variable inputs.
As for the question of how many indicators you should use it once, a few people say that you can use a maximum of three per chart, whilst others say that two is more than sufficient. At the end of the day, it is a personal preference, and something which you will need to work out for yourself.
Forex Auto-Trading Robots – Do They Work?
There has been much controversy in the foreign exchange industry lately, as a huge number of auto-trading robots hit the market and entice new traders to utilise them, in order to make a quick buck.
If only these promises held some truth. The fact of the matter is that very few auto trading systems actually work. If they did, people would be using them with vast amounts of money, and would all be relaxing on the sandy beaches of Hawaii, with no financial burdens or worries.
Take a trip to Hawaii if you have two, and look at the beaches. There are very few people there. Clearly, this illustrates the lack of success that many people have with the auto trading robots that are currently available on the market.
Having found that most auto-trading prop trader robots are rubbish, is it correct to state that every single foreign-exchange trading tool is garbage?
Unequivocally – no. However, what we will admit is that you do need to do a lot of research in order to get your facts straight, and find a program that will indeed benefit your foreign-exchange account. By “benefit”, we mean pushing it to levels which you may not have been able to achieve with your own trading.
How They Work
So, how do auto-trading robots work anyway? The answer is really quite simple. Most robots require that you subscribe to a charting service, and then attach them as an API directly onto the chart.
This means that for as long as you have the chart is open, and an Internet connection available, the robot will monitor what is going on in the foreign exchange markets, and look for similarities between its rules in the back-end, and things which are happening right there on the chart.
As soon as something strikes a similarity, it will place a trade through your designated trading platform. As you can imagine, this takes quite a bit of setup, however for the experienced professional – it will be well within their abilities. Additionally, most auto Forex robots come with a very detailed instruction guide so that even beginners can work them through.
So if you are considering using an auto trading Forex robot, make sure that you do adequate research to find one really does provide the framework for a positive return.
Otherwise, you run the risk of falling into the same trap as many investors have done in the past, and losing money as no fault of your own.