Here are four different market indicators that most successful forex traders rely upon. It forex link signal suggest possible to make money using a countertrend approach to trading.
The advantage of this combination is that it will react more quickly to changes in price trends than the previous pair. Many investors will proclaim a particular combination to be the best, but the reality is, there is no “best” moving average combination. Now we have a trend-following tool to tell us whether the major trend of a given currency pair is up or down. This indicator first measures the difference between two exponentially smoothed moving averages.
MACD histogram is negative, then we have a confirmed downtrend. When both are positive, then we have a confirmed uptrend. After opting to follow the direction of the major trend, a trader must decide whether he or she is more comfortable jumping in as soon as a clear trend is established or after a pullback occurs. There are many indicators that can fit this bill. However, one that is useful from a trading standpoint is the three-day relative strength index, or three-day RSI for short. Generally speaking, a trader looking to enter on pullbacks would consider going long if the 50-day moving average is above the 200-day and the three-day RSI drops below a certain trigger level, such as 20, which would indicate an oversold position. The last type of indicator that a forex trader needs is something to help determine when to take a profit on a winning trade.