Every Forex trader knows that you must supplement the information in your charts with a number of technical indicators. Among the indicators commonly used are strength indicators, volatility indicators, trend indicators and cycle indicators. These indicators not only help us determine in which the market is moving, but also when a trend is about to end and we should either exit the trade or, with a good signal, reverse the trade.
The following 6 indicators are the most commonly used among Forex traders:
- Stochastic oscillator – The stochastic oscillator helps a trader determine the strength or weakness of a currency by comparing the closing price to a price range over a period of time. When the trader identifies a high