Despite the movement of most indicators behind the market, and not in the direction of predicting its state in the future, the best Forex indicator strategies are popular at the same time with young and experienced traders. According to studies, the most effective trading systems are algorithms that include no more than two or three elements. A simple indicator strategy is not able to provide the required signal accuracy, and an excessive number of indicators only complicates and confuses the trader.
Each market player chooses the option that is most appropriate for his experience, style of trading, tools used, timelines and other factors.
The trader has the opportunity to choose from various types of trading systems, which, in particular, include:
1. Simple algorithms involving an elementary analysis of charts or quotes;
2. Strategies based on indicators;
3. Non-indicator options;
Special developments that use one specific signal or technique to analyze the current market situation.
Examples of indicator trading systems for currency market analysis:
Algorithms in this case are based on the use of a variety of graphical indicators. Even an aspiring financial market participant with access to charting software can use the indicator strategy in exchange trading. The development uses standard Forex indicators that are ideal for traders who prefer a technical analysis of the situation.
As a rule, most Forex indicator strategies simultaneously use the indicators of several of them.
It is undesirable to give preference to a combination of numerous indicators, since as a result this can lead to confusion, creating difficulties in the analysis of signals, which often leads to erroneous decisions and tangible losses.
The main plus of indicator Forex systems of this type is relative ease of use, which allows beginners to use them. They do not require complex work, which can only be handled by experienced craftsmen. An optimal and simple construction of the interaction of several indicators is a guarantee of the ease of decoding signals and the effectiveness of its further application.
When choosing such trading systems, it is required to take into account the time period and the currency pair with which the trader conducts operations. A financial market participant can choose the Forex indicator strategy, aimed at effective work exclusively with a certain pair of currencies, or universal, involving the use in combination with any tool.
Most of the algorithms are intended for use at narrowly defined time intervals, and therefore a specific model needs to be selected based on the features and work style.
It must always be remembered that any, including the author’s indicator strategies, can be modified and improved, based on the requirements of the user, changes in the market situation. These measures guarantee an increase in relevance and an increase in the effectiveness of the trading system at every moment of work.