There are many kinds of indicators and it is difficult to choose the best one. As the same time, the use of the efficient indicator will help a trader determine the best entry or exit points for both long-term trading, and for such strategies like scalping.
We will review the top 5 indicators, which have proven to be reliable for making accurate forecasts.
1. Indicator “Laguerre”
“Laguerre" has become popular among traders and analysts because it resolves one of the most common problems of the most indicators - strong noise impact, which upsets the optimal balance between smoothing and delay.
"Laguerre" minimizes the effect of sharp noises and accurately predicts the beginning of a new trend. These features have made it one of the most popular trend strategies.
In addition, the indicator shows market cycles in the selected graphics periods much better than other indicators.
Benefits of “Laguerre” are as follows:
- Precise forecast of a new trend;
- Suitable for any timeframe;
- Efficient for intraday trading, short-term and long-term trading;
- Reliable confirmation signals;
- Trend is indicated in the separate panel, which simplifies the use of the indicator.
2. Indicator “ScalperDream”
“ScalperDream” is efficient in scalping, as it gives accurate entry and exit signals. The main parameter of this indicator is that increasing period slows down the indicator and reduces the number of signals. A trader eliminates unnecessary noise distracting trading and receives only reliable and useful information.
Benefits of “ScalperDream”:
- If an indicator changes the color from red to green, a trader shall place a buy order;
- If an indicator changes the color from green to red, a trader shall place a sell order;
- Stop orders are taken from the Alert;
- If the colors have changed after opening the position, it is safer to close the trade;
- If the trade is successful, but there are five similar bars pops up on the indicator it is advisable to close the trade.
3. “Eye” indicator
“Eye” is a multifunctional indicator, which is one of the best for intraday trading. It is slightly similar to the popular “Zigzag” indicator, but is more efficient and gives more accurate signals. The indicator is based on the principle of straight lines connecting the local lows and highs.
The indicator received its name “Eye” because its extremums resemble large yellow eyeballs with blue or red dots in the center, which look like pupils.
Big choice of settings and the a function of storage of the history of the received signals enable a trader to apply this indicator for many strategies, including the use of automatic advisors.
Basic work principles:
- Sell position is opened when the “pupil” of the indicator is blue;
- Buy position is opened when the “pupil” of the indicator is red.
4. Indicator “ADX CROSSING MA”
“ADX CROSSING MA” is popular for its automatic execution mode. It is based on the exponential moving averages, it has a simple interface and it identifies entry and exit points very precisely. A trader does not need to monitor its operation as the indicator will tell a trader when the best moment is to start a trade.
Basic trading rules are as follows:
- Buy positions are opened when after the opening of the candlestick a WHITE dot appears below the price;
- Sell positions are opened when you see a dot is of the RED color.
5. Bollinger Squeeze v9
“Bollinger Squeeze v9” is also one of the most efficient indicators for intraday trading. Its developers have combined in the one system the algorithms of the popular indicators, such as:
- Stochastic oscillator.
A user can instantly switch from one indicator to the other, or use them simultaneously. At the same time, the indicators do not require a separate panel for each of them, so that trader’s desktop is not too busy. All the data is displayed in one panel. An indicator automatically determines the beginning of a new trend and it works on all timeframes.
We have reviewed top 5 indicators; however it does not mean that you just have to switch to one of them. If you have already found a convenient and effective tool which is not included in the list of our top five, you should feel disappointed! The main thing is that the indicator helps you to obtain accurate forecast and earn money, which means that it is the best for you.
And remember trading results depend only on you!
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.