So, a little summary of what we discussed in the previous lesson:
There are two types of indicators: leading Forex indicators and missed leads.
- Key indicators or oscillator provide signals before the start of a new trend or trend reversal.
- The missed indicator or momentum indicator alerts when a new trend or reversal was formed.
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If you are able to determine market conditions, then you will easily take a hint that gives you the right signal and will not use “fraud indicators”. And how to find out when to use oscilator, and when momentum-indicators?
It’s not a simple question? But, in the end we know that in parallel they work very badly. But soon we will give you a million dollar reply! At the same time, remember, if you can define what the market situation is inside, you will easily take the right kind of Forex indicators, in front or lag, which will give a profitable signal accurate.
These skills will come to you from time to time, as you get experience and to accelerate this process, you need a lot of time to practice in market analysis. And we, in turn, will teach you in the future lesson how to identify the market environment so you can use this indicator more effectively!
Read Oscilator in Forex. Example