Forex indicators are useful in a variety of ways. They operate as tools that are embedded in trading platforms and connected throughout in order to offer traders a different—and often more concise—perspective on the market. They can offer long- or short-term forecasts, a view into the current state of a currency pair, or a look back at historical data. There are actually quite a few different forex indicators that are of use, several of which are detailed below.

Volatility is an unavoidable part of forex trading. But that doesn’t mean it’s necessarily a bad thing: Many traders seek out volatility to generate profits from trades. And almost every trader understands the relationship between risk and reward: If you want to earn a profit from forex trading, you need to be comfortable with a certain degree of risk.

Nevertheless, too much volatility can rattle traders and call existing strategies into question. The recent market upheaval created by the COVID-19 pandemic is the perfect example of volatile conditions that have little precedent and can strike fear into traders. Some adjustments to your risk profile may be necessary, but there are also opportunities to take advantage of this volatility and use your analysis to forecast the long-term implications of ongoing market volatility.

Forex traders bring all kinds of strategies and trading timelines to the table when they analyze forex charts. Both chart patterns and forex indicators can be used to evaluate trade opportunities depending on both your personal trading preferences and the price activity taking place on the forex charts.

When it comes to identifying a price breakout, though, technical indicators can help you determine not only the start of a breakout event, but also the kind of momentum it might carry for traders who open a position at the start of this movement.

Before we discuss the top technical indicators for confirming forex breakouts, though, let’s make sure we understand how breakouts start.

Within the forex market, there are traders known as position traders (sometimes referred to as “buy and hold” traders), who take positions for the long term. They base this on long-term charts and macroeconomics, and they operate in pretty much every market there is—including the hyperactive forex market. 

Considering how the popularity of position trading is growing, it’s worth putting this market approach under the microscope. Here’s a look at the details behind position trading, along with how common traders use positions.

Naturally, all traders are looking for the best technique to help them achieve their trading objectives. Range trading is an increasingly popular approach to the market, more people are looking to it as a means to take advantage of what the forex market has to offer. 

For some people, the idea of range trading—or even the term itself—is alien. But that is about to change. This article breaks down range trading, explaining what stands behind the strategy and how you can go about implementing it.

As a trader, being able to identify overbought and oversold market conditions can help you determine when to enter and exit a trade, what position to take, and when a trend reversal may be imminent. This insight allows you to manage risk and make more informed trading decisions. 

The most popular indicators used to identify overbought and oversold conditions are the relative strength index (RSI) and the stochastic oscillator. Both tools are momentum indicators and are plotted on a separate graph adjacent to that of the price action. They are also banded oscillators and, as such, have a set graphic range between 0-100. Overbought and oversold readings bookend the upper and lower bands, or extremes, of this range.

When you choose to engage in forex trading, you’ll quickly come to understand that it pays dividends to make use of any and every tool that is made available. What these “tools” should do is help push forward your trading strategy, improving your output, and effectively helping generate further profit. Looking at what could very well take your forex trading efforts to the next level, forex trading signals happen to be something that no active trader can really afford to ignore.

When you’re on the hunt for an online forex brokerage, you’ve got options. Online forex trading has seen a number of platforms rise to prominence by providing state-of-the-art capabilities that meet the needs of both new and experienced forex traders. Meanwhile, the market for electronic communication network (ECN) brokers continues to see new platforms attempt to break in among forex traders.

When you’re building a list of forex pairs to target through a swing trading strategy, there are a few basic characteristics you want to prioritize to identify the strongest trading opportunities possible. Any currency pair is going to offer price movements that create swing trading potential over time, but if you’re serious about swing trading, you want to limit your focus to the pairs that offer the highest profit potential through this trading strategy.

Timing is everything in forex trading. Enter a position too late, and you might miss out on the price movement you were hoping to use to generate a profit from your trade. 

The same is true when exiting a trade: If you exit too early, you might miss out on additional price action that would have fattened your profits. But if you hold on to a position too long, your profit margin could come crashing down as the price movement reverses and puts you at risk of taking a loss.

Experienced traders understand the importance of exiting as close to the peak of their potential profit as possible. Forex exit indicators can offer the foresight and information you need to identify the right exit opportunity and take a profit from your trading action. If you’re unfamiliar with these indicators, it’s worth educating yourself on your options so you can experiment with different strategies and identify the indicators that work best for you. 

Here are some popular forex exit indicators to consider using in your own exit strategy.