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Home Forex Terms

Forex Indicator

by Miracle Admin
December 29, 2020
in Forex Terms
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Definition – What does Forex Indicator mean?

A forex indicator is a statistical tool that currency traders use to make judgements about the direction of a currency pair’s price action. Forex indicators come in many types, including leading indicators, lagging indicators, confirming indicators and so on. Popular forex indicators include moving averages, relative strength index (RSI) and average true range (ATR). A forex trader must choose the indicators that fit his or her trading strategy.

ForexTerms explains Forex Indicator

Most forex indicators are built right into online trading platforms and forex trading software. Because there are so many indicators, trading charts can quickly become cluttered with them. To avoid this, a trader has to identify a few key forex indicators that can be traded on, while removing the rest. By carefully selecting indicators, currency traders can avoid being overwhelmed by all the data.

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