An indicator is a software tool designed to follow the price movements of individual assets in real time. Usually, such software allows predicting the movement of a chart if additional information is available. There are hundreds of indicators developed for traders, which can be activated right after installing the terminal. There are three main types of indicators:
- Oscillators;
- Trend indicators;
- Psychological.
The first variant works without delay in terms of displaying statistics. The algorithms of some even provide for anticipation. The second type is more useful when tracking price movements and assessing the reversal of trends in the past. The main drawback is the lag in displaying new data. The third type of indicator is not a technical tool, so it can be considered conventional. Several factors are necessarily monitored:
- the emergence of news in the media;
- moods among traders on trading platforms, forums;
- statistics of previous periods.
Often a psychological factor comes into play when a report appears that quotes of a currency pair are going to fall, traders on the contrary “bet” on price increase not trusting the media. The reason is that the real Forex experts do not spread really useful information through publicly available channels. An experienced trader can increase his deposit dozens of times on the arisen panic because of false messages.
You can start trading on your own, as long as you have a stable Internet connection and a reliable broker. Save at least 500 USD for a successful start and the ability to enter a few trades right after training on a demo account. Do not be tempted to act like a casino on the exchange market. Such a strategy requires a large deposit, which is beyond the means of a beginner trader. Capitalize on your knowledge and diligence.
Selecting a successful trading strategy is not a simple matter. To choose the right trading style it is necessary to study and work through your strengths as much as possible. It is necessary to minimize the influence of negative qualities, which negatively influence the whole process of trading on Forex. When starting to trade, be prepared to conduct a thorough self-analysis. The definition of your own psycho-type will help to choose a trading strategy appropriate to you and become a really successful trader. First of all, use the list of on the site in order to find a reliable broker.