A Good Indicator To Predict Accurately Trend Direction – Have you ever heard the term Trading? Many are still confused and curious what exactly is Trading? Trading terms are generally widely known by the general public who often tinker with the virtual world. Those who use gadgets on a daily basis certainly know what trading is even if they just hear about it.
Trading is an activity of exchanging goods or services from one party to another. Here there will be benefits derived from the exchange of goods or services made by someone. However, as a trader, you must dare to spend capital first so you can exchange the goods to be exchanged again and generate more profits.
Trading is also divided into several types such as Index Trading, Commodity Trading, and forex trading. One of the most widely used by people is Forex Trading. Forex Trading is the same as forex or currency trading, where Forex Trading is one of the trading instruments with the largest volume in the world. Not playing, it has been recorded that the results of the value of forex trading transactions reached USD 5 trillion worldwide.
Seeing that, Forex Trading has become one of the best forms of online investment in the world. Where everyone can use it to increase their income in meeting their daily needs. Not only that, Forex Trading is arguably more flexible when compared to other types of trading. It includes a demo account that can be used by novice traders. So, it will be an opportunity for anyone to be able to use Forex Trading even though it is still a layman.
One of the largest legal brokers in Indonesia also offers a demo account that can be used for Forex trading. With the demo account provided, you can access trading for 30 days using virtual money. That way, you will experience live Forex trading in real time through the demo account that has been provided.
On the other hand, being the largest legal broker in Indonesia also provides many benefits for novice traders. Monex also provides many complete trading guides along with tutorials. Monex also publishes an ebook about trading that beginners can learn in Forex trading. That way, of course you will master Forex Trading quickly.
Indicators That Can Predict Trend Direction
In trading there are indicators that you must know to predict the direction of the trend. To do so also requires high accuracy so that there are no mistakes when predicting the direction of the trend. Here are some trend indicators that can predict the direction of the trend!
- Trand Overlay Indicator
The first Trand indicator that you can use is the Trand Overlay Indicator. This type of indicator appears piled above the candlestick. This Trand Overlay indicator can provide information on where the next trend will take place. This one indicator will really make you comfortable and not bothered in determining the direction of the trend.
The Trand Overlay indicator is divided into two types, namely as follows!
- Moving Average
Moving Average is one of the most basic indicators in running a trade. Moving Averages are often relied upon as a reference for daily technical analysis. Moving Average is perfect for beginners who are just getting to know Trading. You will easily understand how the movement of the right trend direction in Forex Trading.
- Bollinger Bands
The next Trand indicator is Bollinger Bands. This one indicator is a development of the Moving Average (MA). In this case, the middle line on the Bollinger Bands is the Simple MA 20, while the upper and lower lines are deviations from the middle line. This Trend indicator is generally used to find out the strength of the latest trend. When facing Resistance in the Upper Band or Support in the Lowwer Band, the strength of the trend to continue in one direction will be easily tested.
- Trend Oscillator Indicator
The second trend indicator that you can use next is the Trend Oscillator Indicator. This type of indicator has a different appearance from the Overlay Indicator. On the Trend Oscillator Indicator it appears on a separate price movement. So that. The Trend Oscillator indicator can help provide traders with important information to determine the direction to go.
Trend Oscillator indicators are divided into two types, namely as follows!
This indicator is one of the mainstay indicators used by traders. Where MACD is fairly easy to use as a tool to show the strength of the trend. The signal line at point 0 indicates an ongoing uptrend and if both lines are below point 0, then the downtrend momentum is still quite dominant.
In this case, it means that the higher the uptrend, the higher the price, the stronger the pressure to lower the price. In addition to relying on the movement of the two MACD lines below or above the number 0, you can also use the divergence technique which can be used to determine the direction of Forex trading easily.
The next type of Trend Oscillator Indicator is the RSI. This one indicator is almost the same as MACD. It’s just that the difference is in the reference numbers. The RSI is pegged at the numbers 30 and 70, while the MACD indicator uses the reference number 0. The use of Forex Trading is also the same as the MACD Indicator in determining the direction of trend movement.
- Price Action Trend Indicator
The next indicator you can use is the Aciton Price Trend Indicator. This type of indicator is different from the Overlay Indicator and also the Oscallator Indicator. This one indicator is more subjective, where traders can exercise freedom when they want to place the chart on the chart as they wish.
The Trend Price Action indicator is divided into three types, namely as follows!
- Fibbonacci Retracement
Fibbonacci Retracement is one indicator that is often used by professional traders. Most people use the Fibbonacci Retracement as a reference to determine the direction of movement. By using this one indicator, later you will get important information at what level the price starts to move.
Trendlines are also popularly used by traders. This one indicator is really simple but can give maximum results. Traders use this indicator to anticipate when a breakout or bounce can occur during the process of testing the Resistance level.
- Elliott Wave
The next indicator is Elliot Wave. For traders who use the Elliot Wave indicator requires high foresight. Elliot Wave has a very complicated level of difficulty. Traders must determine for themselves where the fractal is located on the chart provided in it.