Beginner Forex book

Beginner Forex book will guide you through the world of trading.

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

FBS Mobile Personal Area

FREE - In Google Play

View

Introduction to technical indicators

Information is not investment advice

The “splendors and miseries” of technical indicators

Computers and information technologies allow traders to forecast the direction of prices without much effort. Technical indicators do all the donkey work for traders freeing them from the need to perform difficult mathematical and statistical calculations. In addition, they save the traders’ time for the market analysis. However, there is always a spoon of tar in a barrel of honey. We have to admit that technical indicators are not crystal balls; they do fail and result in losses. But if traders focus on highly reliable chart and candlestick patterns, apply several indicators for identification of the perfect entry and exit points, they will always be ahead of the game. So, we encourage you to use technical tools in your intraday trades not only because it’s handy, but also because they will help you to minimize the impact of emotions on the decision-making process.

Trading gurus recommend applying at least 2 technical indicators to the chart to filter out false signals. Technical indicators work best in tandem, so you should open your positions when you notice that two indicators give you the same signal. At the same time, try not to be greedy and fall into the mistake of overanalyzing the market. The excessive use of technical indicators will do more harm than good, as you might lose the actual track of price movement and miss your profit opportunity.

A stretch of traders’ imagination is boundless. They combine technical indicators with other analytical tools. A rule of thumb states that combinations of the chart analysis with the technical indicators are the most profitable.

There are two main types of technical indicators: trend indicators and oscillators

Indic.jpg

Popular

Important events on February 24-28

There is almost only one big event on the stage of Forex - Coronavirus. How will currencies and commodities respond?

Coronavirus vs Forex: status update

Coronavirus pushse gold and currencies to where they have not been for years. What next?

The USD is awaiting the flash manufacturing PMI

The United States will publish its flash manufacturing PMI at 16:45 MT time on February 21.

Choose your payment system

Learn more