Indicator is a signal of some trend changes in the market. You can use different indicators of technical analysis when working on the foreign or stock exchanges, but it is not recommended to use more than three. To understand indicators better, you should refer to the formulas they are based on. The formulas can be either complex or simple.
The indicators of the first category determine the trend and show whether the market is overbought or oversold. These indicators include Stochastics and RSI. There is no point in using both of them. You should understand that any signal has to be determined by one indicator. You do not need to use the same type of indicators to determine the market movement. Technical indicators are necessary for determining the price movement or confirming the existing signal. Fractals can be included in this cluster of indicators. They confirm the Alligator signal when determining the trend. Usually, traders use three types of indicators: price by volume indicators used to determine levels of support and resistance, trend indicators which help determine a long-term price movement, and oscillators. In order to choose a correct strategy, you need to use indicators with safeguard measures because they cannot provide a 100% reliable signal.
No one can guarantee you a 100% profit when trading on Forex using technical analysis. It is, of course, necessary to use indicators, but you need to know how to choose them. Currently, there are a lot of new indicators that give wrong signals. Most of the time, such indicators are not effective. You can create your own indicator that will support your strategy, but for this, you need to know a programming language. You can even develop your own trading system if you learn how to write indicators.
The trading system can automatically open positions, so you will be absolutely free of the need to analyze the market.
