Oscillators are a group of indicators that confine the
theoretically infinite range of the price action into more
practical limits. They were developed due to the difficulty
of identifying a high or low value in...
Larry Williams Indicators
As the name suggests, Larry Williams indicators are a group
of technical tools developed and published by the renowned
commodity and stock trader Larry Williams in a series of
books and articles since the 80s. ...
Moving Averages: What Are They?
Moving Averages are technical tools designed to measure the
momentum and direction of a trend. The idea behind their
creation is simple. Price action is thought to fluctuate
around the average value over a period...
What is momentum? The term has a specific meaning in
physics, and perhaps it is easier to understand the momentum
of prices by considering an analogy. We know that the speed
of a swinging pendulum...
What Are Forex Indicators?
Indicators are used for identifying, or even creating patterns from the chaos of the currency market. In all cases, they receive the raw market data as the basic input, and manipulate it in differing ways to create (as opposed to discover) actionable trading scenarios. The natural consequence of this description is that indicators are not tools of prediction. Instead, they are used to give order to the price data, so that it is possible to identify possible opportunities which can be exploited profitably by the trader. No indicator is right or wrong with respect to the signals that it emits, but each of them must be used with an appropriate money management strategy in order to deliver the desired results.
There are many different kinds of indicators, and it is not at all a hard task to define one's own tools for the purpose of evaluating the market provided that a basic literacy in averages is attained, what is desired from the created indicator is made clear. Different constructions will lead to differing techniques which can then be employed most effectively as part of a trading strategy.
So you can regard indicators as your compass and ruler in navigating waves of the forex market. We would use a compass or a ruler to predict when or where a storm will hit, but every sailor knows their usefulness in defining a path over the high seas. Use your indicators to plan your journeys in forex, while protecting your funds with proper money management techniques, and all will be well for you.