The most popular technical indicators for working on Forex

High technologies surround us in our everyday life and perhaps, they have touched every sphere. There are more and more gadgets, new programs, and information in the digital environment. Of course, these processes have not gone past the financial market. Mathematical models and various interpretations of trading algorithms today are among the main tools used by the fix api trader ( ).

Technical indicators are among the most popular software solutions for analyzing the financial asset movement. These are small programs that based on the mathematical calculations of the asset price reflect the current situation and predict the future value of the asset price quotations. To say it simple, the indicators are essentially the movement of asset price in representation of mathematical calculations. If you are already familiar with some technical indicators, imagine the Moving Average indicator. If you are just starting to get acquainted with the market, today I will consider the most popular representatives of this group of technical analysis.

  1. Moving Average . I already spoke about this indicator, but I want to expand a bit its significance. MA is used to determine the trend in the market and the current situation. Maybe someone will say that the signals of this indicator are belated, and he will be right. However, the essence and purpose of МА is not to give the entry point, but to analyze the asset. And this is its main purpose.
  2. Alligator. It is based on the MA logic and displays simultaneously three lines of medium-slip with different periods. But the mathematical calculation of these lines differs in its methodology. The famous American trader Bill Williams has developed Alligator and he described it in his books. Today, it is a standard indicator in every trading terminal, which confirms the high popularity of this technique.
  3. MACD. This is a unique indicator that displays signals of both trend movement and overbought and oversold signals. The high value of its histograms gives information to the fix api trader about the deviation of values from the normative range. The MACD line and Signal indicate the entry point to the market. Also, divergence (a signal to the beginning of the corrective movement that occurs when the indicator values and price quotes are divergent) is a popular signal displayed by this indicator.
  4. ATR. A simple technical indicator that indicates only the current volatility in the market in points. It is a weak signal for analyzing the asset and opening a deal on it. However, everyone uses it to determine the stop loss level in the trading operation, i.e. how many points of volatility are determined and SL is set for this value.
  5. Bollinger Bands. Another technical indicator that indicates volatility on a financial instrument. Two auxiliary bands show how much this volatility deviates from the norm. Therefore, most traders interpret this indicator in different ways, and some people trade on the breakdown of its values, while others – on its retreat.
  6. Price Chanel. It indicates the lower threshold of price values. This is a kind of mathematical interpretation of support and resistance levels. This indicator displays the lower limit of price quotes for a certain period of time and the upper one. If the price breaks through this historical value, then you need to trade in the direction of breakdown.
  7. Stochastic. This is the most popular tool for determining overbought and oversold zones. This tool is also used in the search for correctional zones and speculative fix api trading. Personally, I advise you to take this indicator into account on the old timeframe and not open transactions on the working schedule, if the signals point in the opposite direction from the indicator’s values.
  8. RSI. Just like Stochastic, it also indicates overbought and oversold zones. Some traders prefer this particular indicator due to the longer generation of signals, which do not occur as often as it is in stochastic, but the principle of operation remains unchanged.

I want to note that in drawing up this list, I took into account the popularity of indicators among the traders and how many different interpretations of these indicators already exist in the market. I considered the classical meaning of each of them. The main criterion was how flexible the indicator could be integrated into the trading strategy. Moreover, on the basis of these indicators, entire individual trading systems are created. Each of them generates quality trading signals for trading on the fix api forex market and can become an additional filter in taking investment decisions.

Leave a Reply

Your email address will not be published. Required fields are marked *