5. Technical Indicator

Can generate profit in the forex trading business is the dream of every trader. "It's all a trader trying to win on every transaction.

In order to make each transaction into a win this is the role of an indispensable analysis. Hence the effort to improve the quality of this absolutely do. The most striking may be seen on a technical basis analysis.

To date there are a variety of techniques and ways of technical analysis, but the goal is same i.e. a victory.

Seen from independensinya, technical analysis is divided into 2 IE:

1. Blind Tecnical Analysis
Ie without using technical analysis indicators, in a blind analysis we only analyze a graph.

2. Tecnical Analysis with indicator
I.e. technical analysis using a variety of indicators to determine the direction of the next market.

The most widely used by traders was the model analysis with indicators. Almost over 90% of traders using the help indicator in predicting the direction of the market.

What exactly is an indicator that?

The indicator is a device or tool that provides data from the results of the calculation of a specific formula for measuring and assessing market conditions so that traders can predict the direction of the market.

In the world of forex trading terms this indicator, better known as forex indicators.

The number of forex indicators to the sat has reached hundreds and still will hold the new indicator created again for more help traders generate profit.

Seen from the period of manufacture of these forex indicators are divided into two, namely:

1. The classic indicators, for example: trend line, moving average

2. Modern indicators, such as: ADX, Ichimoku kinkoHiyo and other

then based on its function forex indicators divided into 3 namely:

1. Indicators to determine a trend, for example: parabolic SAR, moving averages, Bollinger band

2. Indicators for measuring the saturation of the market, for example: RSI, Stochastic Oscillator lines

3. Indicators to measure market conditions, for example: Bollinger bands, Volume

seen from the appearance of forex indicators are divided into two, namely:

1. Oscillator lines, namely indicators indicators that it looks in windows which his movement back and forth at a certain value limits. For example: RSI, Stochastic Oscillator lines

2. Trend indicators, i.e. indicators look blends in the graphic that is being analyzed, for example: moving average

in its use, usually when we do an analysis using only 1 to 3 different types of indicators only. As more and more of the indicators used, the cause of confusion and doubt to enter the market and open position.

In addition the use of indicators is also adjusted to the strategy that is used, for example, if we use the breakout strategy, then the necessary indicators are bollinger bands and the volume

. But at its core the use of these indicators should be prudent in accordance with early indicators that the function is to help traders predict market direction next.OK, but that alone is not enough. Who considers himself had become and decided to just stop learning will only make himself fall into a pit of failure and end up exactly the same as those who never learn. Loss. Of course you and I don't want isn't it? Then let's continue next lesson from our technical analysis
. In the technical analysis we know some of the devices that are used to predict the trend of price movement, knowing the support and overbought-oversold and the ressistance. The device basing on historical data that occurred in the past. His name is

indicator. The indicators created by many technical analysts and each has a specific purpose. Some experts created it to predict the trend is ongoing. Others create technical indicators to measure the OB and the OS. While there is also who created it to know the limitations of the soup and res.

the name of the technical indicators are also much the same with the name of its discoverer. For example an indicator named Bollinger Bands, created by John Bollinger, a Technical Analyst with Jewish descent.

But if you want to apply the indicator actually investigated the principle of statistical science in the calculation. Yes, statistics. But don't worry, if you don't like the stats (just like me), the good news is, you don't need to do the calculation manually one by one in the create indicator. All software providers forex charts are usually already provides a built in indicator in it and we just use it alone. There are even some platform that allows us to make the indicators themselves. Yes, of course that if you are already advanced. I myself have no interest to make the indicators themselves. For me the present indicators are already adequate.

There are more than 300 indicators that you can use when doing technical analysis. But in its application later you only need 2 to a maximum of 4 different types of indicators only kok. Not that the more indicators will be the better. It is not. That there is an increasingly confusing. Use sparingly and start your familiar with some of the indicators that you think are good
. On own Netdania there are over 20 different types of indicators that you can use. While at Capital GAIN amount there are about 15 fruit but lets you add your own indicators using an API (Application Programming Interface). In metatrader indicator you can add named Experts Advisor.

the picture below is a selection of the indicators in Metatrader :



It needs to be emphasised here that knowing a lot of indicators are not necessarily guarantee your trading profit. The essence of the use of indicators lies in How You combine one of the indicators with other indicators as well as timing and period you use. If likened to a Kingdom, then the indicator acts as Advisor for you in determining policy for Your Kingdom. You decide whether the advice was followed or not. The more the more Advisory votes are given. Sometimes it becomes not only make time but often misleading and erode our emotions.

Well, that's why you need to know and to choose indicators that best for yourself. Blessed are you because they already have a Forex learning to help you understand the different types of existing indicators. I myself had to spend months to understand the technical indicators when I first start the forex world. Because none are willing to teach me so I have to alt immersed in dozens of foreign forex websites and books thick just to mensarikan the use of a technical indicator. Bah ... If remember those times that it felt like crying alone (lho kok suddenly so melancholy ya ...). OK deh we continue our lessons on our first indicators i.e. Moving Average: The Mother of Indicators