When it comes to trading, technical indicators are some peoples pride and joy. They are what allow certain traders to make the bulk of their profits. Indicators are also what allow some traders to start out on their path to trading while they learn to analyze it themselves without indicators. Apiary Fund reviews many different indicators and their uses. Each one has its own shortcomings and its own benefits. Here are some of the most commonly used indicators along with some of their uses in the market.
The most common and arguably the most beneficial indicator that one can utilize is the Simple Moving Average (SMA). The SMA is discussed a bit in the ‘What Are the Best Indicators That You Should Start Trading?’ article. A recap of the SMA, however, is that is is the most widely used indicator. Most indicators use the SMA in some form or another. The most commonly used doesn’t mean the most complex. The Simple Moving Average is just that: simple. This is one of the many indicators Apiary Fund reviews on their YouTube channel. You can see the SMA video and more about its uses here.
The Relative Strength Index, or RSI, is another extremely common and useful indicator to use in your trading. This indicator shows the bought and sold power of the market. This value, the relative strength of the market, is what a lot of the big bank’s auto traders use in their application. Markets don’t like to remain overbought or oversold for long if they even enter that category. The RSI lets traders know how close or far the market is from being in that overbought or oversold situation and lets traders enter the trends and market direction a lot of the time before it occurs. The earlier you can get into the direction of the trade, the more you are usually able to make on the trade. The Apiary Fund review video of the RSI indicator can be found here.
The third most common FOREX indicator is the Exponential Moving Average, or the EMA. The EMA is similar to the SMA in that it takes the price average over time; how it varies, however, is that the EMA puts importance on the most recent price movement more than previous price action. This allows for a more reactive movement to price action and the ability in some cases to catch entry triggers earlier than with the SMA. The EMA is also used in multiple other indicators, the most notable being the MACD indicator. For more uses and information on the EMA, Apiary Fund reviewed the indicator here.
Indicators shouldn’t be solely relied on when trading. They are there to help in analysis and entries. Some traders are able to visualize everything the indicator would display as long as they know the functionality and equation of the indicators. Other traders may need them as a guide. Regardless of why you have them, knowing how they work is vital to their success in trading. To see more of the indicators Apiary Fund reviews, you can go to the Apiary Fund YouTube channel and find a plethora of videos on different indicators. Watch our playlist here.