What Are Forex Indicators?

Many people, who are interested in Forex market trading, ask themselves a question what the Forex indicator is. In the majority, this graphic representation received by application of mathematical transformations of amounts of financial instruments, prices opening and closing, their maxima and minima for various temporary periods, with graphical displays of other technical indicators executed for the purpose of receipt of prediction of possible behavior of the price in the short term based on the analysis of last periods.

Currently, the significant number of indicators exists; the majority of them in various extent is a modification of a small number of the indicators recognized as classical or standard.

Indicators are subdivided into three primary groups:

• The indicators of determination of trend (tendencies) fixing the direction of movement of the prices, at the same time or with some delay catching probability or expected change of a trend;

• The oscillators determining with some advancing or synchronously the prospects of continuation or change of tendency;

• The psychological indicators considering changes of moods of market participants.

Use of indicators by traders significantly increases chances of successful trade in the Forex market. They are applied in one, by installation at the same time of several copies of the indicator and combination of several versatile indicators.

Based on variety of Forex indicators each trader can create the system of profitable trade.