Friday, July 25, 2014

Most Popular Forex Indicator In My Chart

May 19, 2011 by  
Filed under Fx Indicator


I have people asking me which are the most popular indicator in my chart and therefore I decided to share with you guys this information today in this post. However I must say that what I use is based on my personal experience and strategy and do not represent the mass. What I think is the most popular indicator may be pretty useless in another person strategy.

Therefore you have to try out any indicator before using them in your real trading as what works for one strategy may not work for another.

Below are the most popular forex indicators in my trading chart

1) MACD Forex Indicator – This is by far my most popular indicator as it never failed to appear on any of my trading chart. Personally I find this indicator very reliable as it can be integrated into various different trading strategies.

Forex MACD Indicator

 

In fact, I have written several articles on this MACD indicator and you can read them out in this blog. I bet that most of you will start to ask me about the setting for this indicator, the setting is based on default setting of 12, 26, 9. However  I also trade with a Modified MACD on my chart as well which can help me to identify strong trend as well as when the price is going to reverse.

2) Slow Stochastic Indicator – This is another indicator that I love to use especially for my entry and exit. Similarly, I use this indicator with the default setting of 5, 3, 3. You can read more about how I make use of this indicator from the below blog post that I have written sometimes back. Similar to the Modified MACD, I also trade with a Modified Stochastic which has lesser noise and therefore can help me to get more precise entry.

Forex Stochastic Indicator

 

3) 200 Exponential Moving Average – If you have been reading my blog, you will know that I love the 200 EMA as it is a very powerful support and resistance level. In fact, this 200 EMA has been voted as the most popular forex indicator by traders over the world in a trading magazine.

200 EMA Indicator

 

With the 200 EMA, you can tell the trend of the market and the strength of the market. At the same time, you can use it for entry and exit of your trading position as it is a strong level of support and resistance.

The above 3 indicators are my personal most popular indicators and I hope that you can share your most popular indicator with us by giving your comment below. This information will be very useful for fellow traders out here in this community.

In fact, I have created a course to share with you how I modified the MACD and Stochastic Indicators to increase my winning percentage for all my strategies. To find out more about them, you can click on the link below.

Notes

For those of you who are currently in any forex courses, I will suggest that you focus on learning it and then put it to practice on a demo account before trading live. Please refrain from getting into my Forex Street University Course as I do not want you to get into the problem of information overload.

I understand that a lot of you have been very cautious when looking for a forex course as there are a lot of lousy courses that are created by marketers trying to make money from those of you who are interested in trading. These people are not real traders and this explains why those strategies that they teach do not work. In fact, I have purchased several low quality courses when I am new to trading and therefore I understand your concern. You can take a look at my course but do not rush into buying it, have a feel of the way I teach in those articles and videos in this blog before you decide if this course is for you.

For those of  you who are not in any forex course and are still struggling in your trading, you can take a look at my Forex Street University Course below

If you will like to learn how to trade from me, you can take a look at my Forex Street University Course below

Click here for my Forex Course

If you will like me to trade your account for you and help you recoup back your previous losses or help you grow your trading account, you can take a look at my Forex Signal Service below

Click here for my Forex Trade Copier Service

 

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Comments

14 Responses to “Most Popular Forex Indicator In My Chart”
  1. zack says:

    hi kelvin,
    I think macd and stochastic indicator are lagging indicator, it only telling u the past price but not the future, it not safe to trade using those indicator but I love the 200 ema

    • Kelvin says:

      Hi Zack

      Indeed the stochastic and MACD is a lagging but there can be a very good indicator if you know how to modified them.

      As for the MACD, the divergence is a leading indicator which is pretty useful at times.

  2. John says:

    Hi Kelvin, I am a beginning FX trend trader and use the 1min time frame…..Often times..when I enter a trade using the MACD since it has lots of followers..the price jumps on a golden cross or dead cross..and I end up purchasing or selling at the highest or the lowest point on the candle…and often upon an entry..I see an immediate loss..and due to fear… I often close out my transaction quickly realizing a loss…only to find out afterwards that my entry point was perfect and was actually a start of a trend…I guess my fear is greater than my faith in these indicators. Do you have a cure for this stupidity? ..and also I would like to know if you ever take a long position with MACD golden cross BELOW 0 or if you ever short MACD dead cross when it’s ABOVE 0? Backtest shows it may work..but I wanted to hear your take on this…Thanks..

    • Kelvin says:

      Hi John

      The best way to solve your problem is to do a backtesting. You can go through your chart for the past 6 months and check the results of your strategy. If it is making you profit every single month without fail. You will then have more confidence in the strategy and therefore will not have any fear in your trade. Another way you can solve this problem is to log out of your platform once you have entered your trade and set your stop loss and target profit.

      You just like the trade run by itself and this will prevent you from exiting it due to fear.

      I don’t trade based on 1 indicator signal alone. I will always trade with at least 2 indicators plus some trading conditions that tells me when to enter and exit a trade.

  3. Dan says:

    Where can I learn how you use your three indicators?

    • Kelvin says:

      Hi Dan

      I have written posts on these indicator in this blog. You can read them at the forex indicator category.

  4. SIDDIQUE says:

    U HAVE NOT WRITTEN TIME FRAME

  5. aizat says:

    i am 18 years old, want to start playing forex, which indicator is the most simplest and recomended to beginers like me ?

  6. Randy says:

    Kelvin,

    Your settings for the Stochastics indicator are absolutely perfect. I realize there are no perfect indicators (supposedly) but when using the full/slow Stochastics w/your 5,3,3 settings in conjunction with a 10 and 30 day moving average…WOW!!!!!!!! I have been tinkering with indicators and settings for about 3 months now and yours is the cats meow. Thank YOU very, very much.

    • Kelvin says:

      Hi Randy

      I am glad that you find it useful for you. Do feel free to share with us any trading information by giving your valuable comment.

  7. Van says:

    Kelvin,
    I was wondering if these indicators you use is for long term trend trading or daytrading? By you using the 200EMA, I would assume it is not for dayrading or scalping. Thank you.

    Van

    • Kelvin says:

      Hi Van

      All my indicators can be used in long term and day trading. If you are going for long term trade, you will plot them on the higher time frame like the daily, weekly chart. If you are planning to trade intraday, you can plot them on the 15 min, hourly and 4 hourly chart.

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