Types of indicators for Forex technical analysis

Forex indicators significantly simplify the process of making trading decisions for traders. They allow you to assess the situation in the market and identify the most likely points of the price reversal. However, in order to effectively use these tools, you need to know which one is best suited for a particular situation. So, Forex indicators are divided into two main groups:

Trend - show the direction of the trend and reflect its characteristics (stage, strength, etc.). The peculiarity of these tools is that they reflect the correct information only if there is a clear trend in the market. If the asset is in the consolidation stage (flat), it is better to use the oscillators.Oscillators - usually represent a chart, limited to overbought and oversold zones. When the price approaches one of these zones, the probability of a reversal increases, as the indicator shows. Oscillators are often called advanced tools, because they allow you to predict at what point you should expect the formation of a new trend.Any of the leading or trend indicators can be downloaded on the MTDownloads website and tested on a demo account in order to understand in the future how it behaves in different market situations. This will help to avoid mistakes during real trading.