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How Forex Indicators Work?

August 16, 2011 by

There are many Forex indicators available to the traders nowadays. It’s pretty impossible to know how they all work, but there are also the indicators that are usually called “standard”, which are often included into various trading platforms (like MetaTrader or Web Trader). These standard indicators are very popular among traders, but it looks like not many traders know how their indicators actually work, where do they get their data and what fundamental meaning they represent. While, it’s quite easy to understand what the moving average (the most popular Forex indicator among this blog’s readers) is and how it is calculated, less people would be acquainted with the inner mechanisms of RSI (the second-most popular indicator) or MACD (the third-most popular one).

Lately, the only technical indicator that I’ve been using was the ATR (Average True Range) — it’s not a very complex indicator and I have a good idea of how it works. And how about you?

Do you understand how your Forex indicators work?

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If you want to share your thoughts or ask any questions regarding how various Forex indicators work, please feel free to reply using the form below.

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