The 5 Most Popular Forex Indicators

- By Bob Williams

In the average Forex trading offers, there are roughly 99 to choose from.  It's how many most brokers offer.  But no, you don't need all 99.  In fact, having too many Forex indicators can actually hurt your trading potential, by canceling each other out or by confusing you.  Unless you've got a perfect memory, you'd probably never remember the difference between number 55 and number 56.  So which are the most common, the most used?  There are few that are considered standards when you're opting for your Forex indicators.

The MACD:  (Moving Average Convergence Divergence) is a safer bet for a Forex indicator- it does less trades with longer periods of time in-between.  Fans of this program say that it's not only reliable but they've had this indicator surprise them pleasantly over time.

The RSI, the Bollinger Bands and the Fap Turbo:  The three of these seem to be roughly the same, with their own offerings.  Bollinger Bands are considered a can't-Forex-trade-without, RSI has a good reputation as a 'classic,' and the Fap Turbo is a relatively new Forex indicator that is similar to the MACD- not as risky- but offers many more options.

The Fibonacci Formula:  This one's interesting, because it reflects experienced traders superstitions and their legitimate belief in math when figuring both trends and strategies.  The Fibonacci formula is based on a system (based on roughly 1.618, the 'golden ratio') which is used in making their trading choices.

These 5 are definitely the most popular indicators, but remember that there are still 94 out there.  The most competent use you can make of your indicators for your Forex trading are to mix and match.  Use your brokers suggestions, but also experiment on your own for what you want and what does/doesn't work for you.  There is also one last truth:  no one, but no one does Forex trading without indicators.  The risks are too high.