A personal story and other options follow...

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Best Forex Technical Indicators

A personal story...

I have a bookshelf full of books on trading and at least half of them or, at a minimum half the content of half of them, is related to the "Best Forex technical indicators".

There are 100's of technical indicators. Actually in reality, taking into account the many custom (non industry standard) ones, there must be 1000's of them. Many of the latter are sold by so called guru's as the best Forex technical indicator on the planet!

Well, after many many years "playing" with many many of these indicators (industry standard and custom), the most you ever need on your chart, as I covered in my Moving Average article, is a Moving Average (or Bollinger Bands, if your prefer (the middle Bollinger Band is actually a Moving Average anyway!)).

Why? Well the truth is...

Most of the popular Forex technical indicators are oscillators which basically show you when a Currency pair is Overbought or Oversold. However, if you observe Price action in relation to a Moving Average you can, in time, instinctively tell when a Currency pair is Overbought/Oversold. You can observe this right now by putting a Moving Average and, let's say, Stochastics indicator on any chart of your choosing. Just look when price is Overbought or Oversold according to the Stochastic how price on your chart is over extended from the Moving Average the vast majority of the time at the same point in time.

Other Forex technical indicators (other than the Moving Average), having spent a great deal of time using them, I find, just cloud judgement.

King for me is Price action, Price action (around a Moving Average if necessary) should provide sufficient information to make trading decisions. At most one of the industry standard oscillators can be used for supporting confirmation.

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