Indicators are a type of statistic that may be used both to evaluate the present state of affairs and to make predictions regarding future financial or economic developments.
An indicator is also a calculation that is based on the price or volume of an asset, and the results of that calculation are used in the context of technical analysis to make predictions about future prices.
In the realm of finance, an indicator is most commonly understood to relate to a certain pattern on a technical chart that is derived from the price, volume, or open interest of a particular asset.
Benefits of Forex Indicators
The main benefit indicators offer is that they simplify the understanding of price movements. For beginners in trading, grasping the simple movements of an indicator may be simpler than deciphering the complex changes on the price chart.
Just because it simplifies trading doesn’t necessarily mean it increases profitability. Indicators are helpful for identifying when a price trend is weakening or strengthening, making it easier to spot changes in direction. Indicators can also be a great aid in recognizing patterns in price movements, like identifying when prices are rising or falling.
Best Forex Indicator for 15 Minutes Chart
Using the Super Trend indicator along with the 5 EMA and the 20 EMA is the most effective strategy for maximizing profits on a 15-minute chart. A Super Trend indicator works much like moving averages by being plotted on price and identifying the current market price trends.
Likewise, EMA is an exponential moving average that evaluates trend direction by giving greater importance to recent market data. By bringing together all of these trading terms, you will have access to an excellent trading strategy that can greatly increase your chances of being successful.
The Best Trading Strategy for 15 Minutes Chart
Now that we’ve identified the best indicator for a 15-minute chart, let’s understand how to put it to use as a trading strategy. First, you should know that a Super Trend indicator changes color.
It becomes green when the indicator is below the price and red when the indicator is above the price. Keeping this in mind, we place BUY and SELL positions in the following cases:
Buy Position
To initiate a BUY position, the Super Trend indicator must change to green.
This indicates that it is priced lower. Next, the 5 EMA must be higher than the 20 EMA in a cross. Once all these criteria are met, a BUY signal will be generated.
Sell Position
Likewise, to open a short position, the Super Trend indicator must change to red.
This implies that it is higher than the cost. In the next step, the 20 EMA must cross above the 5 EMA. You will receive a SELL signal once all of these requirements are met.
Final Verdict
There is no doubt that there are countless forex indicators on the market that will help you in your forex trading. However, only you know what indicator works best with your trading strategy. Remember to always practice proper risk management no matter what strategy you use.