Technical analysis in the currency exchange market is very important for short-term investors like scalpers or day traders. These indicators can help a beginner make decisions quickly without making any mistake. In the Forex market, traders can’t think of short-term trading without using technical indicators.
Common technical indicators Forex professionals utilize
1. Parabolic stop and reverse
Professionals use this technical indicator frequently because it is considered the easiest and best indicator to use to predict the market’s flow. This tool is utilized as an indicator of trend as well as the reversals in the currency’s price. In the chart, a trader will see it as a dotted line. This can be an excellent indicator to predict potential movement. If you see that the dotted line is over the existing market, then consider it as a bearish market. If the dotted line goes beneath the real market, consider it a bullish one. In this case, you can go for a long trade.
2. Simple moving average
This one is another easiest technical analyzing tool that many experienced traders use in their trading software. To identify the potential resistance and support levels, the rookies have to use two different periods, such as … Read the rest