Once you enter the forex market, you find yourself naturally bombarding your chart with indicators. Every trader has done it; you are not the first, so don’t feel bad. You will also hear various things about the Best MT4 custom indicators helping a trader become more profitable. However, as time progresses, you find your experience different from what you read. For many, they turn around refuting anyone who says the forex market is not a scam.
Is the market really a scam? Are you using these indicators as they should be? Trading isn’t a get quick rich scheme as you think. The truth is even the best MT4 custom indicators requires you to use them properly. In this article, you will learn more about indicators – what they are; the issue of which indicator is best for trading, and three best mt4 indicators to use while trading.
What is a forex indicator?
Every profession has its unique tool(s) that enable the individual to perform their duty effectively. For instance, when you think of an army, what weapon comes to your mind? What about a doctor, carpenter, farmer or even an architect? These different individuals have their tools to “work their work.” What tool do you have as a forex trader?
The same is true in the forex market; traders have unique tools to figure the current market situation and better predict the market. Indicators are tools to analyze the market and predict future price movement. These indicators serve as an index or parameter to measure future price movement in the market.
Besides the default indicators that come with most trading platforms, we have seen some of the best MT4 Custom indicators in the forex market. However, while these indicators look attractive on the surface, the real challenge is using them appropriately. BTW there are many good volume indicators also.
While it sounds easy and flexible to trade, some traders complicate trading by adding numerous indicators on their chart. One contributing factor to this is the lack of rules imposed in trading since traders have the liability for doing whatever suits them. Furthermore, some traders are so attached to a particular indicator so much that changing them becomes the real problem.
What indicators are best for Trading Forex?
There has been this debate as to which indicator is best when trading forex. While each trader has their reason to back whatever indicator that suits them, the ultimate goal is to make profits. If that is the goal, then whether it is the best MT4 custom indicators or default indicators, there shouldn’t be any debate as long as traders achieve their objectives.
Therefore, there is nothing as the best indicator; trading is about finding a particular technique or strategy that works perfectly for you. Importantly, two traders won’t use the same indicator the same way. For instance, a trader might prefer to use 50 EMA while another thinks that is too fast and use 200 EMA. Everything depends on the goal each trader wants to achieve.
Nevertheless, the only issue is choosing a particular indicator that is useful for you and you alone. Today, we have thousands of best MT4 custom indicators for traders to choose. However, not all indicators are helpful or applicable to the forex market.
Why indicators don’t work
If you are familiar with American football, you might have heard about the term “Monday Night Quarterbacking.” It is similar to asking why doesn’t indicators work? Why do you still rely on indicators that aren’t giving you what you need? They are lagging; lagging indicators such as RSI, MACD, Stochastic, Bollinger Bands, etc. provide false signals.
Do they help? Is it necessary to use them? It is not that they don’t work, but the real problem is that they are late – they respond to price slowly. Perhaps you have heard the term “repainting,” and for new traders, it is hard using them correctly. If you decide to use them, always use support and resistance, demand and supply to confirm before entering a trade.
Three Best Forex Indicator for Trading
Since the advancement of technology into the forex industry, indicators remain the crux of price prediction. Previously, people rely on complex calculations along with support and resistance levels to find relevant entry and exit point.
However, all of such complexity is history with the simplicity of indicators. Nowadays, we see the rise of the best MT4 custom indicators competing with the inbuilt indicators in trading platforms. Let us take a look at three priceless indicators for any trader to use.
Undoubtedly, the best and widely used indicator in trading; although it has four types, most traders prefer the simple moving average and the exponential moving average. The moving averages allow traders to identify dynamic support and resistance level. The period of the moving average depends on the traders’ strategy. For instance, long-term traders prefer to use the 100 and 200 SMA, whereas short-term traders use the 50 SMA.
For trend traders, the stochastic indicator resonates perfectly for their trading style; it allows traders to identify when a currency is either oversold or overbought. While the default period is set to 5, most traders tweak the value to achieve precision.
When the value of the indicators stays below 20, there is every likelihood that price will go bullish, hence traders will be looking for opportunities to go long. Alternatively, when the indicator stays above 80, there are indications that the price will dropdown. While this concept seems easy to execute, it is wise to use other parameters to confirm before executing a trade.
The forex market move in waves and these waves forms different lows and highs. Some traders trade only the lows and highs; at such the zigzag indicator is one priceless tool to us even though it is complicated at times. The indicator draws wave-like lines based on the swings of the market.
Expert combines the Fibonacci retracement tools along with the Zigzag indicators to find a good set up to enter the market. Although it looks perfect, it does generate false signals. However, to avoid such false signals, use them in a higher time frame.
Conclusion MT4 custom indicators
Trading takes time to perfect; while it is never advisable to jam-pack your chart with indicators, it is wise to look for one or two indicators that work best for you. Additionally, look for the best MT4 custom indicators that give you a high chance of making a profit.
We have various tools and custom indicators to help reduce your loss while increasing your chances of success, which you can check through this link. These best MT4 custom indicators have undergone various backtest with multiple conditions and generate reliable signals. You have everything in your hand to make your trading exciting and stress-less.