| Forex trading doesn't have to be hard, but this | | | | overload and deal with it on a mental level without |
| doesn't mean that it is easy. It is not uncommon for | | | | having to use indicators. Put simply, they rarely, if at |
| traders, especially new ones, to feel or experience | | | | all, need indicators because they now "see" and |
| some kind of information overload when trading. With | | | | "understand" more about the workings of the forex |
| charts displaying a seemingly meaningless zigzag of | | | | and currency markets thanks to the years of |
| price moving up and down, it is no wonder that new | | | | experience that they have. It is for this reason that I |
| traders are the ones who suffer the most from | | | | strongly suggest new traders to use indicators and |
| information overload. To combat this many traders | | | | to do so until they either find themselves not needing |
| turn to indicators, hoping that they will in some way | | | | them or only using one or two at most at a time on |
| alleviate the overload of information and simplify the | | | | their charts. |
| process of trading. What is interesting is that many | | | | So what indicator should you use? The answer to |
| seasoned traders actually shy away from or at the | | | | this really depends on your style of trading, but the |
| very least use only the absolute minimum number of | | | | most powerful are momentum based indicators. |
| indicators in their trading. Does this mean that | | | | These indicators plot the momentum of price and this |
| indicators are useless? If you are just starting out, | | | | is something that even experienced traders use in |
| how should you approach the problem of information | | | | their trading (albeit many manage to do this without |
| overload and whether or not to use indicators in your | | | | the need for momentum indicators and instead often |
| trading? Are they a complete waste of time or do | | | | say they can "feel" how price is moving). Momentum |
| they actually serve some purpose? | | | | indicators are useful because they measure the rate |
| Indicators are not a waste of time, but they are not | | | | of change in price. Put simply, if price continues to |
| the Holy Grail that many traders wish them to be. I | | | | change at a steady rate or picks up speed, then |
| would personally recommend that new traders play | | | | momentum is considered to be high and price will be |
| with as many indicators as they can until they feel | | | | strongly trending up or down in the market. As price |
| that they have found a select few that work best | | | | loses speed and the change in price drops, |
| with their style of trading. Many seasoned traders | | | | momentum drops. When this happens, it is possible |
| consider indicators a waste of time and often tell | | | | that price is approaching a turning point in the market. |
| beginner traders not to waste their time on them. | | | | These turning points offer an opportune time for you |
| This is easy for them to say and do because | | | | to get into the market, or close out any open trades |
| experienced traders have years of experience which | | | | locking in profit. |
| has allowed them to come to terms with information | | | | |