Forex Indicators for Trend Analysis

You can download Forex indicators absolutely free, and the description of the essence of their work will allow you to immediately understand how exactly they work. For each of the described algorithms, an analysis of the principle of operation, settings and recommendations for use are given.

It is difficult to name the best forex indicators, because a lot depends on the work style of a particular trader. One will be able to profitably work with a pair of moving averages, the second will be more suited to Stochastic, the third will prefer Bill Williams indicators - there is no universal recipe. 

The main difficulty for a beginner is to choose a suitable Forex indicator for his work style. 

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The Entire Variety of Algorithms is Divided Into Several Groups:

●  Oscillators – work in the absence of a trend;
●  Psychological indicators - give rather a general idea of the state of the market;
●  Custom - the most numerous category. This includes all the thousands of algorithms that traders create themselves, many of which are available for free.

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To Choose, You Need to Clearly Understand:

●  For which market the selected indicator is suitable;
●  The principle of its operation - what exactly it shows and how its values are calculated;
●  How it is used in work.

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You can download Forex indicators absolutely free, and the description of the essence of their work will allow you to immediately understand how exactly they work. For each of the described algorithms, an analysis of the principle of operation, settings and recommendations for use are given.
Most of the considered indicators belong to the user category, they can be used both during the trend and in the flat areas of the market. New Forex indicators are added regularly.

It is physically impossible to describe all the new algorithms - they appear too quickly, many do not imagine anything worthwhile. Therefore, emphasis is placed only on really interesting indicators.

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Forex Paradise Indicator

Forex Paradise is a proprietary indicator that allows you to make huge profits due to a high number of accurate entries. The developer claims 35-85% profit per month from the deposit, while the indicator provides more than 87% profitable deals. According to the developer, the effectiveness of this trading tool has been confirmed in practice, and the trader just needs to follow the signal arrows to enter the market.

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iVAR Indicator

The iVAR indicator is a unique tool that allows the trader to visually filter the state of the market, which is called a flat. The mathematical basis of the indicator consists in determining the fractal structure of the financial time series using the variation index, which allows using a smaller amount of data in the calculations compared to the Hurst indicator. All this sounds quite threatening for a person who is far from mathematics, so let's finish the scientific part with this.

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WPR VSMark Indicator

The WPR VSmark indicator is based on the classic William's Percent Range or %R. In a single application, the indicator lacks great success, since its significant shortcomings did not allow determining a change in the trend in the flat movement. Crossing the lines of the indicator graph in this case provided only false signals.

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ADX indicator

This algorithm is built separately from the graph window. Of course, this is not a Forex 2018 indicator, but its relevance is not lost from this. Today, many traders use his testimony. Like the Trend Strength indicator, the ADX indicates how relevant the current trend is.

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This tool has several values around which its curves constantly oscillate. It is better to work with this tool when using trending algorithms, since it does not determine the direction by itself.

This tool is also not in the category of new Forex indicators. Nevertheless, there is probably no trader today who has not used it at least once in his work. The advantage of the algorithm is that it gives several types of signals, just like any other oscillator.

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MACD shows both situations when it is possible to open deals already in the current direction of movement, but also reflects the prospects of a market reversal in the form of divergences. This algorithm is included in a fairly large number of modern trading systems.

How to Make a Profit

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Divergence is a signal that shows the readiness of the market to turn around, so it is very important to find it, identify it and use it to your advantage. In order to better understand what Forex divergence is, you need to refer to the source's technical analysis and remember how prices move.

At this stage, you need to understand that, as a rule, quotes fluctuate in a certain range, reach points of support, resistance, can bounce and reverse, set new levels, etc. If you trace any price graph, it becomes obvious that the price always unfolds after some time intervals. These reversal moments are extremely important for making a profit, regardless of the trading strategy used for trading or the chosen time range.

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When using divergences, it is necessary to remember certain exceptional situations, when after the formation of the necessary conditions for a trend change, the initial trend continues to develop without a reversal. In such cases, we are talking about convergence or, as it is also called, hidden divergence.

How to Define Divergence

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It is extremely difficult to overestimate the importance of finding turning points, because they give the best signals for entry and, even more importantly, for exit, as the statistics of trader failures show that not all traders can close the deal in time, they often over-hold the position or exit early, losing a part as a result or even all profits. How do you determine the divergence on the price chart? There is nothing complicated in this, it is enough to find the difference between the chart of the quotation level and the drawing of the indicator being used.

How to Define Convergence

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There are also rules for finding and determining convergence or hidden divergence, so the trader does not need to guess, he is always ready to make a profitable deal with a high probability. So, in particular, if two descending bottoms have formed on the chart, and the indicator shows the corresponding two tops, where the second is higher than the first, it is possible to state the fact of a hidden bullish divergence that has developed in the market, which indicates that it is still relevant to sell the currency, waiting good income.

Conclusion

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Before reacting to divergence and convergence in trading in the currency or stock market, it is necessary to make sure that there is a stable trend in the market. During the flat period, there is a large number of false signals. Divergence is believed to be effective only on large timeframes, but practice shows that good results can be achieved on short periods as well. Determining your optimal period can be helped by training on a demo account.

 

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