Trading indicators are a good way to measure the performance of any instrument when you are doing your chart analysis. There are thousands if not hundreds of thousands indicators that can be used to measure a performance of a particular instrument. The reason why traders use indicators it provides them with good insights of how much volume is moving the price of an instrument. There are many indicators including Fibonacci, RSI, MACD etc and all these indicators measure different intervals of how far a price has moved of a particular stock, forex pair or crypto asset. So this is why traders would use indicators when checking technical analysis of any Forex pair. These indicators also help individuals determine when to enter a trade and went to exit a trade. Trading indicators are a great way to assist you in your training journey and to determine where price has been overbought and where price has been oversold. The most common place you would find indicators is on a platform called trading view. Trading view is a platform which looks at prices and gives you chart analysis of all assets across the world. You can use TradingView and view any chart and simply add an indicator to the chart to measure its performance now this is the basics of a technical analysis.
At instant funded account we provide you with all the tools you need to trade including indicators and TradingView charts. Every trader will be given full support when it comes to using trading indicators. But remember indicators are just exactly what they say they are they are simply indicators, you also need to study fundamentals as we mentioned in previous topics, there are two sides of the trading world to understand. A quick recap there are two ways to view any asset and to study before trading it and the two main views, firstly the technical analysis which consists of the charts and indicators and then we have the fundamental which is usually the news also the economy also other factors that play a role in the movement of price. There are also custom indicators made by traders and individuals who have studied the market, these indicators can also be used in conjunction with your trading chart analysis. You will find most of these custom trading indicators on TradingView used under the indicator tab where you would also find the authors name and individual who actually made it.
You got to remember at all times All of these trading indicators and all of these tools are only a fraction of your entire knowledge of how trading works there are other factors that play a key role such as psychology, greed, patience and risk management. The most common indicator used on most traders charts is the RSI, which stands for the relative strength index. The RSI measures extreme areas of a price. Using the RSI you can usually gather where price is gone and where it’s going to be heading to usually these are two key areas which are measured on the RSI as the 70 and 20 zones. To learn more about trading indicators and how to use them please view our courses so we can actually guide you and set you up.