What Is a Forex Indicator? Estimated reading: 1 minute 67 views A Forex indicator is a tool that analyzes market data to help traders identify price patterns, trends, and potential trading opportunities. Indicators process raw price movements into structured information that guides decision-making.Types of Forex Indicators:Traders use various indicators, categorized into four main groups:Trend-Following Indicators – Identify market direction (e.g., Moving Averages).Trend-Confirmation Indicators – Verify existing trends (e.g., ADX – Average Directional Index).Overbought/Oversold Indicators – Detect potential reversals (e.g., RSI, Stochastic Oscillator).Profit-Taking Indicators – Assist in timing trade exits (e.g., Bollinger Bands).While forex indicators do not predict future prices, they provide valuable insights when combined with strong money management strategies. Traders often use a combination of indicators to improve decision-making.
