Forex indicators are the engine room of MetaTrader 4 and MetaTrader 5. Therefore, without them, the trading platforms would not be as active, interesting and dependable as they are. The reason they are highly valued is because of the role they play in helping traders to make analyze the market and make the right trading judgments. The forex indicators list is endless because more indicators are introduced to the market daily.
However, in this post, we shall take a look at what forex metatrader indicators are, what makes a great indicator, and a comprehensive forex indicators list.
What are forex indicators?
Forex technical indicators are made up of mathematical calculations that forex traders often use, depending on the exchange rate, open interest or volume of a pair of currency. Hence, they are mainly used for forecasting price changes in the currency market and enables the traders to quickly decide about entering or exiting the market.
MetaTrader 4 has a functionality that allows you to place indicators in a special window or add them right into trading graphs. While forex traders are concerned about the exchange rate of a currency pair, stock market traders are interested in the price of a stock and the bulk of the main forex indicators are calculated from exchange rates.
Qualities of a Great Indicator
Different forex indicators serve different purposes to traders and also do not enjoy the same level of fame. Therefore, the various applications may include specific cases, derivatives trading, or regular uses.
However, some of the qualities that a great indicator should possess include:
1. They must offer the versatility of use.
2. They must offer valuable information to the user.
3. They must be able to deliver clear signals.
Categories of Forex Indicators
There are different categories of forex indicators. However, we will shed light on some of them.
Technical forex indicators:
What are Forex technical indicators?
Based on different mathematical calculations, forex technical indicators are statistics of past market data. While traders use them extensively in their technical analysis to predict currency trends.
The two major technical indicators are:
Trend following indicators
They reflect the direction and the strength of a current trend. Traders may enter a position when the trend following indicators are showing the current trend in strong momentum in either direction. The most common trend following indicators is moving averages and Bollinger bands.
Oscillator’s indicators banded between two extreme values that reflect short term overbought or oversold conditions. While the most common oscillators are RSI (relative strength index), MACD (moving average convergence difference) and the stochastic oscillator.
While the most charting packages usually include the common forex technical indicators, or you can find a charting package and add the indicators that you want if they aren’t included. Following are the ones that can be coded or developed by a trader or a programmer and be added in some charting software and used for trading.
1. Relative Strength Index (RSI)
2. Stochastic Indicator
3. Bollinger bands
4. Ichimoku Cloud
5. Moving Average Convergence Divergence (MACD) Indicator
6. Commodity Channel Index (CCI) Indicator
7. Moving Averages
8. Pivot Points
9. Support and Resistance
Many forex traders use moving averages of one type or another to get a sense of the underlying direction or trend of the market. Using one or more moving averages can also be used to provide trading signals, such as when a shorter-term moving average crosses above or below a longer-term moving average.
The following four fundamental types of moving averages that forex traders frequently use in trading currency pairs and for general technical analysis purposes are:
1. Simple moving averages
2. Exponential moving averages
3. Weighted moving averages
4. Smoothed moving averages
While the averaging process used can be performed on the high, low, open or closing exchange rates; the close is the most popular. For example, you can compute a simple moving average by first adding up the exchange rates over a given number of time periods.
You then divide that sum by the number of time periods to obtain an average. This averaging process then proceeds over time or moves to create an indicator line usually shown superimposed over the exchange rate for a currency pair.
In addition, a simple 10-day simple moving average computed on daily closing prices appears in the chart below in red superimposed over a candlestick chart of the exchange rate for the EUR/USD currency pair. When the moving average lies above the exchange rate, it tends to send a bearish signal to a trader. A bullish signal would be suggested by the exchange rate that exceeds the moving average.
Volatility indicators show you how dramatically the price can change over a short period.
There are different ways to calculate volatility. Usually, it involves monitoring the closing prices to determine how far they spread out around the average price.
High volatility means that there are large swings in the price in either direction. Low volatility means that prices tend to move in smaller increments and behave more predictably.
1. Envelopes Indicators
2. Moving Average Indicator
3. Bollinger Bands
Momentum indicators show the perceived strength of trends. You may recognize that a currency pair has been trending for a while, but how do you know if the trend is strong or is about to reverse? Unfortunately, nobody knows for sure.
What momentum indicators do is monitor the rate of change in prices. They show whether the trend appears to be healthy or is running out of steam. Most popular momentum indicators, such as the RSI and the Stochastics Oscillator, have boundaries that indicate when the market may be overbought or oversold.
Volume indicators measure whether or not traders are enthusiastic about a currency pair.
In the stock market, the volume is the number of shares that changed hands during a given period at the exchange. For futures and options, it is the number of contracts traded.
Comprehensive Forex Indicators List
List from 1 – 25:
1. Acceleration Bands (ABANDS)
2. Accumulation/Distribution (AD)
3. Average Directional Movement (ADX)
4. Adaptive Moving Average (AMA)
5. Absolute Price Oscillator (APO)
6. Aroon (AR)
7. Aroon Oscillator (ARO)
8. Average True Range (ATR)
9. Volume on the Ask (AVOL)
10. Volume on the Bid and Ask (BAVOL)
11. Bollinger Band (BBANDS)
12. Bar Value Area (BVA)
13. Bid Volume (BVOL)
14. Band Width (BW)
15. Commodity Channel Index (CCI)
16. Chande Momentum Oscillator(CMO)
17. Double Exponential Moving Average (DEMA)
18. Directional Movement Indicators (DMI)
19. Exponential (EMA)
20. Fill Indicator (FILL)
21. Ichimoku (ICH)
22. Keltner Channel (KC)
23. Linear Regression (LR)
24. Linear Regression Angle (LRA)
25. Linear Regression Intercept (LRI)
List from 26 – 50:
26. Linear Regression
27. Midpoint (MIDPNT)
28. Midprice (MIDPRI)
29. Min (MIN)
30. MinMax (MINMAX)
31. Momentum (MOM)
32. Moving Average Convergence Divergence (MACD)
33. Max (MAX)
34. Money Flow Index (MFI)
35. Normalized Average True Range (NATR)
36. On Balance Volume (OBV)
37. Price Channel (PC)
38. PLOT (PLT)
39. Percent Price Oscillator (PPO)
40. Price Volume Trend (PVT)
41. Rate of Change (ROC)
42. Rate of Change (ROC100)
43. Rate of Change (ROCP)
44. Rate of Change (ROCR)
45. Relative Strength Indicator (RSI)
46. Session Volume (S_VOL)
47. Parabolic Sar (SAR)
48. Session Cumulative Ask (SAVOL)
49. Session Cumulative Bid (SBVOL)
50. Simple Moving Average (SMA)
List from 51 – 67:
51. Standard Deviation (STDDEV)
52. Stochastic (STOCH)
53. Stochastic Fast (StochF)
54. T3 (T3)
55. Triple Exponential Moving Average (TEMA)
56. Triangular Moving Average (TRIMA)
57. Triple Exponential Moving Average Oscillator (TRIX)
58. Time Series Forecast (TSF)
59. TT Cumulative Vol Delta (TT CVD)
60. Ultimate Oscillator (ULTOSC)
61. Volume At Price (VAP)
62. Volume (VOLUME)
63. Volume Delta (Vol ∆)
64. Volume Weighted Average Price (VWAP)
65. Williams % R (WillR)
66. Weighted Moving Average (WMA)
67. Welles Wilder’s Smoothing Average (WWS)
Forex Indicators List Conclusion
Above is the comprehensive forex indicators list that can help you get the best forex trading results. While some can easily give you the needed results, others require combining with one or more forex indicators to produce the expected results. You can also use several other tools through this link to increase chances of making a profit.