Forex trading is tactical and requires technical shrewdness and market know-how to excel. Have you ever wondered what steps you could take to grow your forex trading account? This post is focused to highlight the contribution of one of the widely used forex weapons called ‘indicators’, the impact of best forex indicators 2019 on your trading strategy and how they can help a trader make effective decisions based on current market situations.
What is a Forex Indicator?
According to Alpari, a forex indicator is a market analysis tool that is used to forecast current price movements. Such indicators make use of the price as well as volume and helps traders make decisions about market ins and outs.
Types of Forex Indicators
Leading or Lagging Forex Indicators
Leading indicators also known as oscillators provide traders with an entry or exit signal before the event occurs. The lagging indicators, on the other hand, provides confirmation signals after occurrence of a specific event.
The latter is generally considered to be a trend-confirmation type whose purpose is to forward a signal that the trend is in progress.
How to Use a Forex Indicator in MT4
Let’s admit it, not all MT4 platforms are created alike. Contingent upon your broker, it can use different indicator types some of which are fully loaded while the other just concentrate on the basics. As MT4 trading platform is quite user-friendly and customizable, it can seamlessly work with almost all basic indicator types and automated solutions.
Integrating Forex Indicators to the MT4 Platform
- Find and copy the downloaded MT4 indicator file on your computer
- Access the data folder
- Open MQL4 file
- Paste the files to the indicators folder
- Restart MT4
Using Indicators on the MT4 Trading Platform
- Open MT4 platform
- Find the navigator panel
- Click ‘custom indicators’ option
- Double click the newly installed indicator
- The properties window will pop up
- Press ‘ok’
The Top 4 Forex Indicators for 2019
Below you will the 4 best MT4 indicators for 2019. Regardless of your trading style, these indicators can improve your trading experience and also simplify the technical analysis process.
The MACD also known as Moving Average Convergence Divergence is a popular MT4 indicator that exhibits the affiliation between two moving price averages. It’s very easy to use this indicator. All you need to do is to minus the 26-days EMA from 12-days EMA.
The MFI is yet another momentum MT4 indicator that makes use of a tool’s price as well as volume to foresee the trustworthiness of the prevalent trend. This indicator is also referred to as the volume-weighted RSI because it integrates volume to the conventional RSI.
The On-Balance Volume MT4 indicator is used to compute the flow of volume with respect to the pricing fluctuations. Noticeably, this tool is available FREE of cost to the traders. The instrument works by maintaining a cumulative sum of volume.
- Accumulation Line
The Accumulation Line is yet another popular MT4 instrument. It works just like OBV except for the fact that it also considers trading timeframe along with the pricing fluctuations. As compared to OBV, it offers more precise depiction of the flow of money. Moreover, the upward line indicates the rising buying pressure. Similarly, the downward line shows the rising selling pressure.
Why you should Use a Forex Indicator?
Forex trading and indicators go hand in hand. Almost all traders are aware with the basic indicator types, however only some of them knows how to implement them properly. But, the fact is that these traders can significantly improve their performance once they know how to apply these instruments in a right manner.
First and foremost, it’s crucial that you’re comfortable in implementing indicators to your trades. You have to be confident as without self-assurance you won’t be able to get the most out of these instruments. The good part is you can use these indicators in your free account to get an idea how they actually works.
In addition to that, it’s also important that you use these indicators accurately. Keep in mind, the loss would be hefty if you failed to apply these indicators properly.
Lastly, you should select an indicator that suits your trading style. Also, make sure to invest in a right automated EA that could deliver optimum results while working in conjunction with your favored tools.
Generally, all forex traders use forex indicators at some stage of their trading business. MT4 is an amazing platform. It offers plethora of features to its users and the inclusion of variety of indicators is an added perk.
Moreover, it’s incredibly simple to install forex indicators in MT4. Even a beginner can add a customer indicator to MT4 by just going through a few articles on the relevant subject.