3 Power Indicators for Smart Traders

There are many indicators for trading Forex that promise you endless pips and profits, however most are not so effective. In this article we will describe several of the most powerful indicators that generated signals for decades.

Commodity Channel Index
The CCI or the Commodity Channel Index is a powerful overbought\oversold oscillator that tells you when the Forex pair is too low or too high. It uses the average distance of price from the moving average to determine if price is overbought or oversold. Signals are usually generated when the CCI crosses extreme levels such as 200 or -200.
Another powerful signal of the CCI is the zero-line-reject. This occurs when price is in range and the CCI bounces off the level or zero, and then continues in the previous direction: this is a strong trend-following signal that indicates that price is about to continue the trend and it is a good spot to join it.

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Bollinger Bands
The Bollinger Bands is a Forex indicator that present the volatility of any Forex pair, stock or commodity in a simple manner. It is comprised of middle band, upper band and lower band which engulf the price and serve as support and resistance levels: upper level is a potential resistance level and lower level is a potential support level- we enter trades when price hit one of the bands. It is recommended to confirm such trades with price-action as well, to make sure that trades are accurate.
The Bollinger Bands can also shows us whether price is in range or trend, by looking at the direction of the bands: if the bands are horizontal it means that price is in range and therefore it bounces between support and resistance levels, and when the bands are directional it means that price is in a trend.

Relative Strength IndexThere are many indicators for trading Forex that promise you endless pips and profits, however most are not so effective. In this article we will describe several of the most powerful indicators that generated signals for decades.

Commodity Channel Index
The CCI or the Commodity Channel Index is a powerful overbought\oversold oscillator that tells you when the Forex pair is too low or too high. It uses the average distance of price from the moving average to determine if price is overbought or oversold. Signals are usually generated when the CCI crosses extreme levels such as 200 or -200.
Another powerful signal of the CCI is the zero-line-reject. This occurs when price is in range and the CCI bounces off the level or zero, and then continues in the previous direction: this is a strong trend-following signal that indicates that price is about to continue the trend and it is a good spot to join it.

chart

Bollinger Bands
The Bollinger Bands is a Forex indicator that present the volatility of any Forex pair, stock or commodity in a simple manner. It is comprised of middle band, upper band and lower band which engulf the price and serve as support and resistance levels: upper level is a potential resistance level and lower level is a potential support level- we enter trades when price hit one of the bands. It is recommended to confirm such trades with price-action as well, to make sure that trades are accurate.
The Bollinger Bands can also shows us whether price is in range or trend, by looking at the direction of the bands: if the bands are horizontal it means that price is in range and therefore it bounces between support and resistance levels, and when the bands are directional it means that price is in a trend.

Relative Strength Index
The Relative Strength Index is another overbought\oversold that gives very good signals, especially when confirmed in a specific matter: we enter long trades when the RSI touches the oversold level (30) and immediately bounces up; We enter sell trades when the RSI touches the overbought level (70) and immediate bounces down – this trading method is very accurate and generates signals at up to +75% win rate, in many time frames.

We recommend that you experiment with these indicators on several pairs and timeframes until you find the ones that work the best.

Michael Wells is a Forex trader fascinated by Forex trading indicators. In his site he shares in insights about trading and money management.

The Relative Strength Index is another overbought\oversold that gives very good signals, especially when confirmed in a specific matter: we enter long trades when the RSI touches the oversold level (30) and immediately bounces up; We enter sell trades when the RSI touches the overbought level (70) and immediate bounces down – this trading method is very accurate and generates signals at up to +75% win rate, in many time frames.

We recommend that you experiment with these indicators on several pairs and timeframes until you find the ones that work the best.

Michael Wells is a Forex trader fascinated by Forex trading indicators. In his site he shares in insights about trading and money management.

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