The forex trading business involves various forms of analysis. Among the most common methods of analysing the market is through technical means. Technical indicators rely on documented information about the market to come up with insights about the future.
These indicators track the price movements by using various techniques and gives signals on the expected price trajectory. In general, technical analysis is done by dedicated indicators as well as a few others that have been customised for platforms like Metatrader 4. To unlock the potential of the indicators, therefore, it is reasonable to download Metatrader. The following are the best Metatrader 4 indicators that can help traders with technical analysis.
Money Flow Index Indicator
This indicator tracks the price and volume of trade to determine the trend of the market. The indicator generally works logically and the trend of the market pressure is signalled by a positive or negative movement. The respective direction of the signal is usually indicative of the selling or buying pressure in the market. The indicator is especially useful for tracking the reversal of trends. Extremities on both ends of the market in terms of price are also signalled by this indicator.
The Awesome Oscillator is a powerful indicator that determines the momentum of the market within certain intervals. This is achieved by tracing a moving average along the price points. The indicator is also a tool for tracking the market trends in order to help traders forecast possible future trends. By default, the indicator revolves around an established start point from which it oscillates around. The resultant crests and troughs are then utilised to mark the bullish and bearish points. The Awesome Oscillator is quite a valuable indicator but must be utilised with consideration.
Moving Average Convergence Divergence
The MACD indicator tracks two moving averages. Just like other indicators, it is possible to tell when the market is bearish or bullish. For this indicator, a slip of the MACD under the indicating line can be interpreted as a bearish signal. The opposite is true for the bullish signal. Various rise and fall signals in relation to the two moving averages are also used to indicate different aspects of the market. The divergence of the averages from the MACD, for instance, can indicate the closing of an established trend. In overall, the MACD is one of the great tools for technical analysis in the MT4 platform.
Relative Vigour Index Indicator
This indicator is another oscillator that follows the dynamics of uptrends and downtrends. The mathematical formula that backs this indicator is relatively simple (read more here: Automatizirani Forex). The general trend can be derived by getting the difference between the open and close cycles. The RVI presupposes that during the uptrend, the prices are supposed to close high while on the downtrend, the prices should close low. The indicator relies on the price differences to determine the trends.
Forecasting the trends of the forex market is not as straightforward as the indicators would suggest. While they are great for showing general trends based on previous data, a lot of consideration is needed when making trades. The above indicators are nevertheless some of the best you will get on the MT4 platform for technical analysis.
Andrew Cioffi is a real-world marketing and sales pro who offers services to businesses all over the world, ultimately improving their bottom line by crafting creative solutions to their business problems.