One the one hand, price action traders prefer not to use any Forex indicators at all. It is a common belief among them that the technical indicators don’t add any new information to the one presented by the prices themselves and just clutter the charts, obscuring the real market data. But that’s only one group of currency traders, and it is quite small.
On the other hand, among technical traders, it is almost conventional to use at least two indicators on a chart: one trend indicator (for example, some kind of moving average) and one oscillator (for example, RSI). Such setup allows buying low and selling high in the direction of the main uptrend, and is recommended in many financial trading books.
Lastly, there’s a group of Forex traders who add a lot of indicators to their charts — 5–6 or even more. This group of speculators usually consists either of newbies, who don’t quite understand what they are doing and add too many indicators thinking that it will help them somehow, or of the highly professional specialists with sophisticated trading systems, which really require such an abundance of the
Personally, I don’t have any indicators at all on the majority of my charts. From time to time, I might add one or two indicators to the charts I research to see what other traders see on these charts, but I rarely base my trades on the indicator display. How about you?
Loading …
If you wish to share detailed opinion about an optimal amount of technical indicators on one Forex chart, please feel free to do so using the form below.
