Precise Forex Indicators
The accuracy of Forex indicators is a very relative characteristic, since none of them can be the basis for opening or closing a position. That is why none of the technical elements makes it possible to trade profitable for the long term.
This leads to the fact that many traders choose a whole set of indicators for themselves, analyze the indicators of each of them, and only then make the final decision about entering the market, closing a position or any other actions.
Newbies often try to find the “most accurate” indicator that would allow them to conduct long, profitable and reliable trading. However, it should be understood that such an indicator does not exist in principle, and in order to conduct profitable trading, it is necessary to develop a trading system that would imply taking into account both fundamental and technical indicators.
What determines the accuracy of the indicators?
How to determine the accuracy of indicators and is there any parameter in order to make at least some assessment? Actually, no, since each indicator is only an indicator of a certain trend, which each trader interprets in his own way. Therefore, if for one person the indicator is indicative, then for another he may not give any information or even lead to making a deliberately wrong decision.
In addition, the result of the analysis is largely determined by a combination of certain indicators, and therefore correctly understand what each of them shows and how the signals are combined. If you use similar solutions that essentially demonstrate the same trends, it is logical that their readings will be combined, whereas for making the right decisions it is very important to combine data obtained from average values, volume, overbought / oversold indicators and so further, i.e. indicators that are different in nature.
The Most Accurate Forex Indicators
Sometimes some experts point out the most accurate Forex indicators, among which are called Stochastic, Bollinger Bands, MACD, RSI and others. However, it should be understood that these judgments are subjective in any case, since their indicators are indicative for each trader, especially if a trading strategy that has been profitable over the long term and a money-management strategy has been developed.