How Do Forex Indicators Work?

If you’re asking the question, how do forex indicators work,  I’m going to make a couple of assumptions about you.

• You’re new to forex.
• You see trading as an avenue to improve your lifestyle by making money.
• You want someone, or something, to tell you when to enter or exit the market because it seems like the easiest solution.

Was I right?

Sorry to burst your bubble, but an indicator is nothing more than a different way of looking at the same information.

As forex traders we have very little information available to us. All we know unequivocally is:

• The price in the past
• The price right now

That’s it.

As an example, your candle sticks give a visual representation of how price moved in the past, with the hope you can use this information to predict what’s going to happen in the future.

Every forex indicator will simply show you different visual representation of this same information.

RSI, MACD, CCI, Stochastics & Bollinger Bands are all built using these 2 variables.

No indicator contains a secret sauce capable of telling you when to enter and exit the market at the perfect time.

When you look at these forex indicators you’re seeing the same information, just in a different format.

I’m possibly being a bit dismissive, partially because I don’t use indicators. I do know plenty of profitable traders that do because it helps them understand the previous market movements better than a naked chart. If that’s you, then by all means continue.

But… If like I suspected, you’re wanting to use an indicator to simplify the market and tell you when to enter and exit, you’re on the wrong track.

If you want to succeed with your trading you’ll need to learn the fundamentals of why the forex market moves. I have spent decades developing my competitive edge that’s allowed me to sustain my family and I while reaching financial freedom from trading.

I’m happy to teach you how to do it so you too can taste the success and the freedom that being a professional trader affords.

Just drop into the trading room during the Asian session for one of my live streams and I’ll do my best to guide you onto a path of profitability.