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HomeFOREXWhat are the best forex indicators to use?

What are the best forex indicators to use?

One is financial indicators. There are mainly interest rates , money supply , consumer and corporate debt, inflation rates, etc., which determine and affect the economic environment of the foreign exchange market trend, which is the basic analysis indicators of foreign exchange transactions introduced earlier.

The second is emotional indicators. Mainly there are the size of sporadic transactions (indicating what the smallest investors are doing), the buy-sell ratio (indicating how many people are buying and how many are selling), the Bull and Bear Analyst Index, etc. Contrarian” investors often use sentiment indicators to predict the price expectations of most investors and then act in the opposite direction. The basic idea is that if everyone thinks prices will rise, there is a chance that no more investors will push The price rises further, and it is often said that “at the bottom, everyone is a bear; at the top, everyone is a bull.”

The third is trend indicators. There are mainly MACD indicators, RSI indicators, DMI indicators, etc., to judge the trend of the foreign exchange market through price, transaction volume and the mutual cooperation of price and volume. Momentum Models are an evolutionary model from the moving average method. The basic principle is exactly the same as the moving average method. It reflects the difference between two moving averages or their ratio. In an uptrend, the short-term average will be higher than the long-term average, and the difference momentum indicator will be a larger positive value greater than zero at this time; on the contrary, in a downtrend, the short-term average will be lower than the long-term average, and the difference will be lower than the long-term average. line, the differential momentum indicator will be negative. The lower it is, the more negative the indicator is. Below are some of the momentum indicators.