If you were trading in the Forex market, then you know that in technical analysis we must be able to read charts. There are many traders using technical analysis to determine future price movements. They analyze charts using data from previous periods. Technical analysts believe the price will do the same thing that it did in the past. Therefore, the previous data on the chart is really important for technical analysts so that they can make better decisions. To help themselves in the analysis, analysts place various indicators in order to more clearly see the picture of the market, and what potentially can happen in the future. There are many indicators, each of which is unique, and has individual abilities in predicting price movements. Some indicators open in a separate window, while others are attached to the price chart itself. Many traders use more than 3-5 indicators, while others use only one indicator, or do not use them at all. It depends on individual preferences. Technical traders, scalpers, usually combine two indicators to more easily predict price movements. Scalpers use indicators such as Parabolic SAR, moving averages and Bollinger bands. The combination of these indicators can bring a good result for short-term traders who use 5-minute charts. Swing traders and intraday traders are known for using lagging indicators. Lagging indicators are moving beyond the price. These include: moving average discrepancy (MACD), stochastic and relative strength index (RSI). Lagging indicators, as a rule, tell traders about a possible price reversal, which may occur in the near future.

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