A Good Indicator for Predicting Accurate Trend Direction - Have you ever heard the term Trading? Many are still confused and curious about what exactly Trading is? The term Trading is generally widely known by the general public who often messes with cyberspace. Those who use gadgets everyday certainly know what trading is even if they only hear it.
Trading is an activity of exchanging goods or services from one party to another party. Here there will be benefits derived from the exchange of goods or services carried out by someone. But as a Trading must dare to spend capital first in order to exchange goods that will be exchanged again and produce more profits.
Trading is also divided into several types such as Index Trading, Commodity Trading, and forex trading. One of the most widely used by people is Forex Trading. Forex Trading is the same as forex or currency trading, where Forex Trading is one of the trading instruments with the largest volume in the entire world. It's no joke, the results have been recorded from the value of forex trading transactions reaching USD 5 trillion worldwide.
Seeing that, Forex Trading has become one of the best forms of online investment in the world. Where everyone can use it to supplement their income in meeting their daily needs. Not only that, Forex Trading is arguably more flexible when compared to other types of trading. Inside is a demo account that can be used by novice traders. So, it will be an opportunity for anyone to use Forex Trading even though it is still common.
One of the biggest legal brokers in Indonesia also offers a demo account that can be used for Forex Trading. With the demo account provided, you can access trading for 30 days using virtual money. That way, you will experience Forex Trading in real time directly through the demo account provided.
On the other hand, as the largest legal broker in Indonesia also provides many benefits for novice traders. Monex also provides many complete trading guides and tutorials. Monex also issued an ebook about trading that can be learned by beginners in running Forex Trading. That way, surely you will master Forex Trading quickly.
Indicators That Can Predict the Direction of Trend
In trading there are indicators that you must know to predict the direction of the trend. To do this also requires a high degree of accuracy so that errors do not occur when predicting the direction of the trend. Here are some trend indicators that can predict the direction of the trend!
1. Indikator Trand Overlay
The first Trand Indicator you can use is the Trand Overlay Indicator. This type of indicator appears piled on top of the Candlestick. This Trand Overlay indicator can provide information on where the next trend will go. This indicator will really make you comfortable and not bother in determining the direction of the trand.
The Trand Overlay indicator is divided into two types, as follows!
a. Moving Average
Moving Average is one of the most basic indicators in carrying out trading. Moving averages are often relied upon as a reference for daily technical analysis. Moving Average is perfect for beginners who are just familiar with Trading. You will easily understand how the movement of the direction of the right trend in Forex Trading.
b. Bollinger Bands
The next Trand indicator is Bollinger Bands. This indicator is a development of Moving Average (MA). In this case, the middle line on Bollinger Bands is a Simple MA 20, while the upper and lower lines are the deviations from the midline. This Trend Indicator is generally used to determine the strength of the latest trend. When facing a Restance in the Upper Band or Support in the Lowwer Band, the strength of the trend to continue in one direction will be easily tested.
2. Indikator Trend Oscillator
The second Trend Indicator that you can use next is the Trend Oscillator Indicator. This type of indicator has a different display with Overlay Indicator. The Trend Oscillator Indicator appears on separate price movements. So. The Trend Oscillator indicator can help provide important information to traders to determine the direction to go.
Trend Oscillator indicators are divided into two types, as follows!
This indicator is one of the mainstay indicators used by traders. Where MACD is fairly easy to use as a tool to show the strength of trends. In the signal line at point 0 indicates the ongoing uptrend and if both lines are below point 0, the downtrend momentum is still quite dominant.
In this case it means that if the uptrend condition is higher then the price will go up, the stronger will the pressure to decrease the price. Besides relying on the movement of the two MACD lines below or above the number 0, you can also use divergent techniques that can be used to determine the direction of Forex Trading easily.
The next type of Trend Oscillator Indicator is RSI. This indicator is almost the same as the use of MACD. It's just that the difference is in the reference numbers. For the RSI is set at the numbers 30 and 70, while the MACD indicator uses the reference number 0. In the use of Forex Trading is also the same as the MACD indicator in determining the direction of movement of the trend.
3. Indikator Trend Price Action
The indicator that you can use next is the Trend Price Aciton Indicator. This type of indicator is different from Overlay Indicators and Oscallator Indicators. This indicator is more subjective, where traders can exercise freedom when they want to place charts on the charts as they wish.
The Trend Priece Action indicator is divided into three types, as follows!
a. Fibbonacci Retracement
Fibbonacci Retracement is one indicator that is often used by professional traders. Most people use Fibbonacci Retracement as a reference to determine the direction of movement. By using this indicator, you will get important information at what level the price starts to move.
Trendline is no less popular used by traders. This indicator is really simple but can provide maximum results. Traders use this Indicator to anticipate when a breakout or bounce can occur while testing the Restance level.
c. Elliott Wave
The next indicator is Elliot Wave. For traders who use the Elliot Wave indicator requires high foresight. Elliot Wave has a very complicated difficulty level. Traders must determine for themselves where the fractals are on the chart provided therein.