Technical News Indicators

Predicting the future price levels, or the general price direction, technical news indicators act as a cornerstone of your Forex trading strategy. Some examples of common forex technical indicators include Relative Strength Index, Money Flow Index, Stochastics, MACD and Bollinger Bands.

Technical indicators in forex, often known as “technicals", are noted by the fact that they do not take part in analyzing any of the fundamental business, like earnings, revenue and profit margins. They are used most extensively by active traders to analyze short-term price movements in the market. Most technical indicators are of little value to a long-term investor. However, by analyzing the long-term trend, they help identify good entry and exit points for the stock.

What is challenging about technical news indicators is that with literally hundreds of technical indicators available, they can leave even the most advanced trader in wonder and confusion. No single indicator can be considered as best by all. In fact, a group of indicators may be applicable only under specific circumstances or certain technical indicators in forex may be useful for certain industries or certain stocks.

Technical news indicators are good at pointing which stocks are good for further analysis. Although they are poor predictors of exact timing, technical analysis can be viewed as a starting point.

Instead of trying to go through the exhaustive study of all of the forex technical indicators available, it is better to go over the most common groupings. New traders can experiment with different techniques, but at the end of the day, they should develop their own trading style, matching their investing knowledge. One should devote further research, education and practice, to develop a niche for them.