Here are a couple more forex indicators that you may choose to use. In my complete forex trading system I do have Stochastics and Macd Indicators on my chart, but do not place too much emphasis on what they are trying to tell me.
The Macd indicator
I use Macd only in 1 specific way – for MACD divergence.
In the image on the left notice how price is going up at point A and the angle of the red line.
At (point B) (the Macd indicator – settings 5,13,1- observe how the red line is angled steeply downwards. This is known as MACD Divergence.
This was a “clue” that price was about to turn down at this point.
The Stochastic Indicator
Point C shows the stochastic indicator.
Without going in to too much detail, this forex indicator is used to show when price on a currency pair is said to be overbought above the top red line and oversold below the bottom red line.
In truth I don’t pay too much attention to it anymore. It can be hinting at a change in direction for days and weeks sometimes.
Take a look at the video below where I show the Stochastics and Macd Indicators in more detail.
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