We have ventured into a large number of tools that can help you analyze potential trends and trading ranges, as well as related trading opportunities. You’re not bored yet? That’s amazing! Then let’s move on.
In this lesson, we will try to make use of this indicator easier for you. We want you to understand the main pros and cons of key indicators and trend indicators, and thus you will be clearer, which one suits you and that is not.
First, let’s talk about some concepts. In principle, there are two types of indicators: outpacing and omissions (trend).
The main indicator gives a signal before the start of a new trend or reversal. The trend indicator gives a signal after a trend or a reversal has started and it tells you-“Hey, Buddy, trend has started. Don’t miss your chances! “
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You’re right here! You’ll “capture” the entire trend from scratch, if the main indicator always gives the right signal. But, unfortunately, it will not be so. If you’re using a advanced indicator, you’ll experience a lot of false signals that will confuse you.
And how do you like it? Which key indicators are you confusing?
The main advantage of the missed indicator is that they are less likely to provide a false signal. Trend indicators give a signal only when prices are clearly forming trends or reversal. The accuracy fee, in this case, is to enter the position with some delays.
On the other hand, the biggest gains are made when you enter positions on two first reversal candles and when you use the trailing indicator, you run the risk of losing the lion’s share of profit. Not the Ace!
We need to categorize all our technical Forex indicators in front of one of two categories – this is the main goal of this stage:
- Leading indicator or Oscilator
- Missed indicators or momentum indicators
Because some of these groups will be equal to each other in some way, they are more likely to be the possibility of each other. We don’t want to say that you should use just one of two types of indicators, but we want you to know the possibility of the trap that each of these indicators is hiding.
Read the Forex pointer and the leading trailing indicator. Connect