Friday, December 19, 2014

Reliable Forex Trend Indicators

May 15, 2012 by  
Filed under Fx Indicator


I bet that most of you must have heard of the phrase, the trend is your friend either from a forex book, forex website or a forex course that you have taken.

Indeed being able to ride the trend is a great way to profit as such trade always produce high risk reward ratio. Therefore in this post today, I shall be sharing with you several reliable trend indicators that I have been using so that you can try them out on your trading strategy to see if it works for you as well.

MACD Indicator – The macd indicator is a great tool if you want to trade the trend. It can gives you a good entry signal simply from its crossover.

You just need to use the default setting of 12, 26, 9 provided by your trading platform.

When you are in a strong uptrend, your macd lines will be above the zero line most of the time. Therefore what you should look for is when the histogram flips to the direction of the trend.

For example:

When you are in an uptrend, what you should look for is when the histogram flips upward and you can enter a trade. It is very important that the macd lines has to be above the zero line when this happen.

If you are in a down trend, you will need the macd lines to be below the zero line and you will enter a trade when the macd histogram flips down.

Parabolic SAR – This is another indicator that can gives you buy and sell signal in a trend. When you are in an uptrend, you will enter a trade when the PSAR produces the first dot at the bottom of a candle.

When you are in a downtrend, you will enter a trade when the PSAR produces the first dot at the top of a candle.

200 Exponential Moving Average – The 200 EMA is basically an indicator to tell you the current trend of the market. When the 200 EMA is sloping upward with steep gradient, you are in a strong up trend.

Therefore the main purpose of this indicator is to tell the trend of the market.

As a whole, the 3 trading indicators above are reliable trend indicators that I often used when I am riding the trend. You guys can try it out on your demo account to see if it fits into your trading plan.

Do feel free to ask any question by commenting below or if you have anything to share with us, do feel free to give your comments below as it will be beneficial to all of us traders here.

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

 

 

Comments

21 Responses to “Reliable Forex Trend Indicators”
  1. Goh says:

    Hi Kelvin,

    I live in Singapore and can only trade at night after I return from work. Can i still use your scalping and day trading strategies during that period? I am not sure if missing the first half of the London session is an issue

    • Kelvin says:

      Hi Goh

      Not an issue at all. You may have miss out some trades but with good risk reward, you will still be profitable.

      Most new traders started out trading part time and some of them are pretty successful and that is how they turn into full time trader.

  2. Shy says:

    Hi, your site is really great, as others have mentioned I also wish I as found your website before.

    I am currently trading with markets.com. wanted to know your review on them.

    Please let me know

    Thank you

    • Kelvin says:

      Hi Shy

      I cant give you any comment for market.com as I am not using it myself. really sorry about it.

      I am very happy to know that you like my site.

      Do keep in touch.

      • Shy says:

        Hey Kelvin,

        Thank you for your reply. I am looking for a company which is reliable. Could you please suggest me one so that I dont get scammed.

        Its hard earned money you see.

        • Kelvin says:

          Hi Shy

          If you are looking for a broker, then I will recommend FXCM or GFT as I have used them before. They provide very good chart.

  3. Hugh Brooker says:

    With regard to 200 day EMA I have found it of limited use as it only changes direction about once a year. I take my trends from the relative positions of the 100 EMA and 20 EMA. 100 on top go short. 20 on top go long. The trend will change about once a month.

  4. Floyd says:

    I found your blog here after watching a video on youtube. I only regret that I hadn’t found this sooner :(

    Your style of explaining various indicators with examples of their uses is fantastic! Thank you for what you do.

    • Kelvin says:

      Hi Floyd

      I am glad that you like my explaination.

      All these videos and articles took me a long time to record and write and now it seems that everything is worthwhile.

  5. jane says:

    Thanks you sharing , l was lose on forex trading last few month . your vedio is good for newbie like me . because my english is poor so l need to listen few time . you video is really good to encourage me to continue learning , thanks Kelvin . By the way, can I know what is time frame that is good for newbie?

    • Kelvin says:

      Hi Jane

      I am glad that you like my videos. There is no such thing as specific time frame for newbies. It all comes down to your own trading strategy and time availability.

      If you are a scalper that enters and exit a trade within minutes, then you should be using the 5 or 1 minutes chart. If you are a day trader like me, you will be using the 15 minutes and 1 hour chart. By the way, do you have a strategy on hand to use?

  6. Micheal says:

    Since I started to read your blog I feel so much more confident now trading forex. Yes I did loose some money but that was before I found your blog. Your blog site is an inspiration to me. I look forward to start making money full time soon trading forex and many thanks to you. One last thing could you please recommend to me a charting platform other than metatrader. I do not have the money to open a live account and the demo version will not update. The date is still saying April and its frustrating. Please recommend one where I can install the indicator with the arrow that you suggested.

    • Kelvin says:

      Hi Micheal

      You can try fxcm as they have pretty good chart. As long as you persevere, you will be able to make consistent income for yourself one day.

  7. Zulfiqar says:

    Hi,Kelvin

    I have find this detail about Macd indicator. I have attached it to the chart but I found only one red color line. There was not any other ( Blue ) line. Is there any mistake by me? Kindly help me.

  8. Brian Mullan says:

    Hi Kelvin,

    I have stumbled across your Forex Blog on You Tube and I very impressed with your sincerity. I have extremely limited knowledge of Forex. I will use your Forex Blog as my only resource to become a successful trader. Are the default parameters correct on MT4 for your Indicator setup?

    Thank you

    Brian Mullan.

    • Kelvin says:

      Hi Brian

      I am not using MT4 plaform but I believe that the default setting for all indicators are the same irregardless of platform.

      Take you time to learn forex and please do not rush into trading live with your real money. Practice your skill on a demo account first.

  9. Dhananjay B says:

    i always used to ignore MACD indicator but thanks to you i have learned its importance

  10. raja says:

    Your article is very good. It is very helpful to identify newbies and experienced also. These three indicators combination can help to make profits consistently. Please tell other good indicators and usage also.

  11. Shakeel Murad says:

    Excellent article.My concept about trend identification has become very clear.

    Thanks

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