If you get to know more about Forex trading and MetaTrader 4, you will understand the importance of trading tools and how it contributes to the trader’s success. With the use of technical analysis, you can predict the right timing to enter and exit a trade, therefore, it minimizes the risks. But technical indicators are not that simple to understand. It is complicated and beginner traders might find it hard to understand. Fortunately, amidst the pool of technical indicators available nowadays, there are some that are user-friendly and yet they are very useful to every Forex trader. If you are curious as to the best one perfectly suited for you, check the list below.
Order History Indicator
This indicator gives the trader a view of their transaction history in the past. When you have this Order History indicator, you will have detailed information as to when you entered a trade and when you exit. This information is very important especially if you want to replicate your success and also avoid your past mistakes.
Through the use of Order History Indicator, you will also be able to modify the different variables including the type of text and the color variation. This allows you to see a more detailed trading analysis of your past trades.
Moving Average Convergence Divergence (MACD)
MACD is another famous MetaTrader 4 Indicator, particularly for newbies. If you want to see the relationship shared by two dynamic price averages then you must utilize the Moving Average Convergence Divergence indicator. If there is a drastic increase in price, there will be a notification to pull away from the short-term price average.
This is a free indicator on the list, the on-balance volume is being used to show both the positive and the negative flow of the trading volume. You can achieve it when you add or subtract the volume of a particular trading day as you keep on track of the price movement.
If you want to keep track of the market volatility then this indicator is perfect for you. There are three Moving Average lines in Bollinger Bands. For the middle band, it displays the direction of the market. The upper and lower bands are the deviation by the volatility of the middle band. When you use Bollinger Bands, you will also see the overbought currency pairs.
Another useful indicator in Forex Trading but often overlooked is the Zigzag indicator. Because it is too simple, not many traders use it. But unknowingly, this zigzag indicator is a tool connecting the lows and highs. Using this indicator, you can identify trends and support, and resistance as well. Both highs and lows are being controlled by selling and buying.
The last on this list, but surely not the least is the Stochastic Indicator. This indicator allows you to compare a specific closing price to a variety of prices at a certain period of time. Using this comparison, Forex traders can easily identify the oversold and the overbought currency pairs.