Price movements in the forex market may be hard to predict, but they aren’t entirely random, either. There is logic behind the way currency pairs rise or fall in value, and decades of forex trading have revealed that this logic can often be identified—and then predicted—through the use of technical indicators.
Technical indicators come in many shapes and sizes, and no specific indicator is viewed as a required tool for assessing potential forex trades. As traders gain experience and learn about the different technical indicators at their disposal, they end up developing a preference for specific indicators that align with their trading strategy and prove to be reliable over time.
These technical indicators can be broken down into three broad categories.Read More