What are Indicators and how do I use them?

Beginner Questions
1

I see a lot of Indicators on the web and in the forums, How can I know which Indicators to chose? and after I chose Indicators how do I use them?

For now I have a damo account with 10markets.com , with a mt4 platform.
Do I need to contact my broker to use the Indicators or do I do it myself?
and If I do it myself how the hell do I do it?
I don’t know anything about coding and programming.

Thank you all.

2

Hi Nick

Technical indicators are mathematical calculations based on price. Do not worry though, they are easy to apply, no coding or programming needed and look more complicated than they look.

In order to know which ones to choose you need to understand which indicators are most effective in trading conditions.

You will find the indicators on the MT4 platform, click insert, indicators…

If you want more assistant, let me know the type of strategy you follow and I can advise you on which indicators will complement your trading.

The most common indicators are Moving Averages, MACD, Bollinger Bands, RSI, CCI and stochastics

3

Best thing you can do is study at pipschool right here at babypips. A great resource.

4

Hi Nick,

Like the previous comment, all indicators are is a bit of maths applied to price (and/or volume).

They don’t “indicate” in the true sense of the word, like a car/vehicle indicator flashing “right” means the car is turning right. In forex/trading the car would have already turned, the indicator comes on afterwards!

The best thing you can do, find an “indicator” (tool) on the charts that shows you the market sessions. Tokyo, Frankfurt, London, New York, London Close. Also the Previous Day’s High and Low Price.

There are enough consistent price patterns that occur just using these times of day.

A ‘helpful’ indicator is a moving average, as it will give you a general idea of the direction of price, I like the 20ema.

Cheers,

JN

5

Here’s a tutorial on how to include indicators on MT4 MT4 Basics: How to Use Indicators

6

Indicators can be said to be tools that is used to identify possible opportunities in the forex market so as to earn profit. There are lots of indicators which can be used to navigate waves of the forex market.

7

The school is awesome here at babypips. Check it out.

8

Thanks for recommending our School and for the positive feedback!

9

Hi Nick. Welcome!

I agree with some other comments about studying forex here at baby pips school. It’s a great place to start. Can i suggest you learn how to read price action first, and get your foundations and the FX basics strong. Then check out the world of indicators if you still wish to. Don’t forget, indicators lag behind price mostly, so they won’t necessarily tell you where price is going, so be careful relying on them. Some Moving averages can be handy. Support and resistance levels are important to learn about.

Best wishes on your journey. G