Every trader needs a degree of analysis when it comes to trading. No analysis will yield you no profit. That’s because without proper analysis it becomes impossible to remain in profitable trade for long. That is why traders spend so much time looking at charts. It is a very essential part of Forex trading. In fact, in any kind of trading, you need analysis to stay on top of the game. It doesn’t matter if it’s stock, Forex or gold. You just can’t afford to ignore technical analysis. And what better way to analyze than free good Forex indicators. Anything that helps you trade is useful. And it is better if it’s free.
A lot of options:
Now there are a lot of indicators to choose from. Just a search on the internet will show you how many indicators are present. Of course, there are the classical indicators. But there are a lot of indicators that you can make as well. Therefore it means that most platforms today let you customize. That way you can even make indicators that you feel will suit your trading style.
Some good free Forex indicators:
But right now customization is not a very big need. For a starter, what he needs is good indicators. And when a rookie is beginning, it is very probable that he doesn’t have too much to invest. In fact, a rookie may not want to invest too much into trading. He would rather gain some confidence before. And after that, he may want to start investing. In such cases top free Forex indicators are very necessary.
And there are some free indicators that are present. These indicators are classical indicators. And they have helped traders for a long time now. And the best thing is, these are mostly available for free on most trading platforms.
1. MACD or Moving Average Convergence Divergence:
It is one such indicator. It is mostly free and is very useful. It is a simple indicator. What it does is it measures a difference. Here the difference is between EMAs or exponential moving averages of a currency. One EMA is for 26 days, say, and the other is 12 day period.
The closing prices are used for such calculation. The MACD provides its depiction through a histogram. That way it shows a difference with its 9 day period EMA.
2. Free good indicators:
Another very popular and one of the free good Forex indicators is the RSI. It stands for relative strength index. It is a very technical indicator. This indicator tells you about oversold and overbought conditions. It has a scale.
This scale goes from 0 to 100. When readings are above 70, it denotes overbought conditions. And when readings are below 30, it denotes oversold conditions. These are the basic ideas of RSI. Using these ideas, one can decide to take buy or selling positions.
Such free good Forex indicators are very popular. That’s because they provide simplicity and ease to trading. So, it only makes trading a less stressful experience. So if you want to trade with peace and accuracy, make sure you use these indicators. They are helpful.
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.