Question
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which indicator is best for entering a trade?
8 Answers
<p>MACD, a trading indicator that consists of a histogram and an exponential moving average. The main purpose of this indicator is to calculate divergence with the price. The regular divergence with MACD and price indicates a market reversal, while their hidden divergence indicates a market continuation.</p>
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<p>Stochastic, a quite popular momentum indicator whose main aim is to identify the overbought and oversold zone. Traders often need to find a possible profit-taking area in their trading strategy. You can use this forex indicator to find the location from where the price is expected to reverse.</p>
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<p id="isPasted">A technical indicator provides traders with insight into the supply and demand of securities, as well as the psychology of the market. The basis of technical analysis is formed by these indicators.</p><p>To measure positive and negative flows of volume in a security over time, use the on-balance volume indicator (OBV). </p><p>This indicator is calculated by subtracting up the volume from down volume. Up volume is how much volume there is on a day when the price rallied. Down volume is the volume on a day when the price falls. The price goes higher or lowers each day, and the …</p>
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<p>When it comes to technical analysis of the forex market, no indicator can be 100% reliable. Indicators like RSI, Moving Averages, Bollinger bands, MACD, and many others are quite popular among forex traders due to their reliability. Your strategy and trading plan will determine which combination of indicators will work best for you. If you find them useful, you can also use advanced indicators like the Fibonacci retracement tool. Some traders, however, prefer to trade naked charts and follow a pure price action strategy, avoiding any type of indicator. </p>
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<p id="isPasted">Technical indicators are very helpful financial instruments that aid traders in uncountable ways. They are four types: trend indicators, volatility indicators, momentum, and volume indicators. Some of the most reliable indicators employed while trading are:</p><p>Relative Strength Index</p><p>Bollinger Bands</p><p>Moving Average</p><p>Fibonacci</p><p>Average True Range</p>
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