What is the Best Technical Indicator in Forex?

[mohawwll]

Now on to the good stuff: Just how profitable is each technical indicator on its own?

After all, Forex traders don’t include these technical indicators just to make their charts look nicer. Traders are in the business of making money!



If these indicators generate signals that don’t translate into a profitable bottom line over time, then they’re simply not the way to go for your needs!

 

[ridenz]

Now on to the good stuff: Just how profitable is each technical indicator on its own?

After all, Forex traders don’t include these technical indicators just to make their charts look nicer. Traders are in the business of making money!



If these indicators generate signals that don’t translate into a profitable bottom line over time, then they’re simply not the way to go for your needs!

RSI divergence

 

[Nemisis-369]

Now on to the good stuff: Just how profitable is each technical indicator on its own?

After all, Forex traders don’t include these technical indicators just to make their charts look nicer. Traders are in the business of making money!



If these indicators generate signals that don’t translate into a profitable bottom line over time, then they’re simply not the way to go for your needs!

no indicator is profitable.

 

[kbarjunlal2]

When you read the charts without any technical indicator, thats when you'll become better at trading

 

[GeekyForex]

Difficult question to answer and depends entirely on your chosen trading style. But two of the most commonly used indicators would be:

Trend Line
Trend trading is a popular approach that involves identifying and capitalising on the directional movement of currency pairs. Unlike other strategies that focus on short-term fluctuations, trend trading aims to ride the momentum of a sustained price movement over an extended period.

The key principle behind trend trading is "the trend is your friend." This means that instead of fighting against prevailing market forces or trying to predict reversals, traders should align themselves with existing trends and maximise their potential returns.

Moving Average Convergence Divergence (MACD)
The MACD indicator, consists of two lines - the MACD line and the signal line - along with a histogram that represents the difference between these two lines as shown below:

One key feature of the MACD indicator is its ability to generate buy and sell signals. When the MACD crosses above its signal line, it generates a bullish signal indicating that it may be an opportune time to enter a long position. Conversely, when it crosses below its signal line, it generates a bearish signal signaling a possible time to consider shorting.

Combing the MACD and taking trades in the direction of the overall trend is a commonly used strategy by traders.