3 Most Popular Forex Indicators In 2018
Forex indicators have been around for a very long time. In recent years, the indicators have gotten better and more effective at giving market insights. So many alternatives have also been developed to address specific issues about the forex market. Beginners who are just getting into the trade often have trouble getting a foothold in the market. Such traders who are not familiar with the forex landscape are better placed to learn about the market by using a forex demo account. For intermediate and experts traders, such an account is not necessary and any popular indicator is good enough for the trade. In 2018, a number of forex indicators have proven to be quite common among forex traders. The following are some of the most popular forex indicators this year.
photo/Gerd Altmann
The Ichimoku Chart
This indicator is also known as the Ichimoku Kinko Hyo. It has been gaining popularity in the market for quite a while now. The main appeal of the indicator is its ability to use multiple pointers to show the assets that have better prospects. The chart makes use of a cloud system and various tools to come up with insights that have a more accurate illustration of price trends. This allows traders to make a better judgment. The Ichimoku chart is quite useful for all kinds of traders who are at different levels of skill.
Bollinger Bands
This is one of the most prevalent technical indicators of recent years. Bollinger Bands is not a new indicator but it has found immense popularity in recent years. This indicator is perfect for illustrating the price highs and lows over a set period of time. The indicator specifically targets the short-time market trends to derive insights. The signals are given by two bands that act as the upper and lower limits of a moving bar in the middle. The moving bar is determined by the difference in standard deviation, which is an important marker for volatility in the market. The Bollinger Bands not only show volatility in the market but they also indicate instances of overbuying and overselling. All these signals give the trader a perfect opportunity to make worthwhile trades.
The Stochastic
Finally, the Stochastic indicator continues to be very popular among traders. This indicator is generally one of the most famous and most widely used in the industry. It is widely used for its accurate technical analysis of the prevailing prices in the market. The stochastic uses comparison tools to determine the projected closing price of a particular trade asset. This indicator is great for showing the performance of currencies and helps traders to get a vivid insight of the best time to buy or sell. By analyzing the closing price limits of each currency over a set period, it becomes easier to calculate the expected prices in the next trading session.
The Stochastic indicator, the Bollinger Bands, and the Ichimoku chart might not be the only popular indicators but they are the most promising for 2018. These indicators have consistently impressed users and they are expected to continue drawing bigger numbers over the coming years.
Author: Andrew Cioffi
