What are the most commonly used technical indicators in forex trading?
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I use just a 20 EMA. I cut down on indicators as I believe price is the best indicator.
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The most commonly used indicators would be moving averages, probably exponential moving averages, EMAâs. Common off-chart indicators are RSI, MACD.
On-chart but less common types are Bollinger Bands and stochastic oscillator.
MAâs are useful for identifying, confirming and comparing trends, but they are poor at signallng entry timing. The others are usually used with the same basic objective - predict a change of price direction before the chart shows it has started, so that an early entry is possible - traders doing this with them are generally failing.
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Have you completed Pipsology?
Pipsology explains a plethora of indicators.
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do you appreciate that these are two totally different questions? 
itâs generally said that in forex trading more than 95% are unsuccessful and less than 5% are successful, so do you think the most commonly used technical indicators are likely also to be the best indicators?
or is the opposite more likely? 
the relevant question isnât really about which are âgoodâ and which are âbadâ anyway - itâs about what youâre using them for
the most commonly used ones are all the ones derived from moving averages, and most forex traders are using them to try to decide when to enter trades, and very, very, very few people ever become successful using them that way (itâs true that one or two do, though, iâm sure)
the best ones, in my opinion, are the other ones, not derived from moving averages, and most successful traders (this is a small minority group, of course!) are using them to guide their directional bias, NOT to signal when to enter trades ⌠and among successful traders even the ones using moving averages and/or other indicators derived from moving averages are mostly using them for directional bias, not as trade entry signals
i use a moving average myself (sometimes two!), after nearly 40 years of making my living as a trader, but not to decide when to enter a trade
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The best and most simple indicator is the price action that moves according to market order flow. The MACD histogram set up of 3 -10 -16 bars shows that flowâŚ
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Well said. Itâs not about what you useâitâs about how you use it. If you spelled out to me how to use your strategy, I guarantee it wonât work for me. My judgement and psychology is different from yours. Eventually, Iâm gonna morph your strategy and tweak it into something else.
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Speaking of the most commonly used indicators, then according to my observations these are MAs of each of the form. I mean EMAs, SMAs and so on.
They perfectly mingle with other indicators and they can back up any strategy oriented at short-term analysis. If you set up MA correctly, then they can even aid during long-term analysis, but still other methods are applied in this case.
Other than that, RSI is a good thing to define overbought and oversold levels. Itâs also a good addition and it perfectly combines with MAs.
Top 5 indicators used in Forex trading:
- RSI
- MACD
- EMA cross
- Ichimoku Cloud
- Bollinger Bands
To use these indicators correctly, check here
I personaly think EMA is must have to make reading trends way to easier
The best indicator to use is the indicator which is best for your strategy. So you must have a strategy first. There is no such thing as the univeral and absolutely best indicator. Remember, an indicator is just a tool: thereâs nothing gained from having the best hammer in the world if what you needed to use was a screw-driver.
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Moving average, RSI and Bollinger bands are mostly used indicators in Forex.
In my opinion, Moving Averages and RSI are popular indicators. They help assess trends and momentum for better decision-making.
Moving Average is definitely the one that is used by countless number of traders and usually in a kind of combination with others.
I donât believe it can be used standalone efficiently. It literally showcases nothing if itâs alone, but if itâs a mingle with other indicators like RSI which tracks price momentum and indicates overbought and oversold levels, then a good strategy can be developed. But again, the efficiency is determined by trials and errors.
Sure, the best indicators are leading indicators.
These are the macro economic data releases.
These are the best indicators because these are what the big institutional traders watch and wait for, responding only if there is a significant variance between the expected value vs the actual released value.
I would say exponetial moving averages and the relative strength indiciator. Stochastic and MACD are also good ones to try.
âbestâ is subjective. Whatever works for you, use it.
MAs, MACD, RSI. I also use session indicators and order blocks. Iâm starting to play with high and low of the previous day indicators to see how pice responds around price levels around those times.
I see a lot of traders in YT use volume as part of their strategy. .not something I really know how to use.
Iâve been meaning to do some reading on pivot points too.
God bless I almost loss all my $1000 remaining $200 before I come across your comment thank you so much I have recovered $100 with the macd indicator
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