Trading Indicators page 2

As the Wall Street classics say, successful trading is the art of reading market sentiment in order to accurately predict future price direction and move in the trend. The forex market also fits into this concept.

Indicators for technical analysis allow you to detect levels and patterns on charts. This is important for trading because around them there are favorable points for setting Stop Losses and market entries. Indicators are software solutions, which are integrated into the trading terminal and modify the standard price chart according to their work algorithm, and trader's presets, are used for automatic determination of support/resistance levels, detecting overbought/oversold areas, finding patterns on charts, etc.

In forex, risk management is really important. The currency market is often unpredictable and even successful traders are forced to suffer losses. One of the most effective ways to protect your trading account is using Stop Loss (SL) and Take Profit (TP) orders. The ability to automatically close a winning trade on a fixed number of pips is also very important. So let's learn more about using Stop Loss and Take Profit orders.

Each of us understands that the earlier one manages to "catch the trend", the bigger the potential profit will be. In the modern financial market model, price is not the cause of change, but the result, and this element of the system changes last.

Economic indicators are reports that include financial and economic data that are published by government agencies and private entities regularly. These data help market observers track the current state of the economy and make their predictions, which most financial market participants will then rely on.

It's not a secret that to trade successfully on the forex market, it is required to constantly carry out technical analysis of the chart. In practice, there are so many methods to study the currency market, but they all require considerable time. That is why traders use forex indicators to facilitate the trader's work at this stage.