Discovering the best indicator for the forex market is a common question among traders; there are thousands of indicators with similar formulations, but the overall attitude of the market can only be observed through personal interpretation. Indicators offer a sense of market conditions and can provide signals to buy or sell, but they are not the ultimate solution for making successful trades. Indicators are just tools that traders must understand how to utilize best, depending on market conditions. Therefore, one must judge what makes sense for them and have faith in their preferred tool.

write 1000 words and add headings article based on this youtube scriptIn this video i’m going to take a look  at the question that i get quite a bit   what is the best indicator for the forex market  this is a question that we hear a lot in the   industry as traders are trying to figure out  the best way to trade the markets in general  

The biggest problem of course is there are  literally thousands of indicators that you can   use but at the end of the day most of them are  very similar similar mathematical formulations   most of them are also considered to be lagging  indicators meaning they’re calculating what has  

Already happened the indicators can give you  a sense of the overall attitude of the market   but they’re also going to be a very personal  thing and this is because it’s uh trading is a   very personal journey there there are different  ways that you can interpret the chart it’s not  

As straightforward as you would think in the  sense that people will observe different things   for example on this chart i could make an  argument for support and resistance showing   up at this level several times but there are  other people that would make the argument  

That we have broken above this downtrend line and  it’s only a matter of time before we break out   so they are looking to buy at the same time  i am looking to sell which one is right well   you just don’t know until what happens now  people will use indicators on top of something  

Like this to kind of get an idea of what’s  going on so let’s take a look at for example   let’s go ahead and put up the rsi now the relative  strength index can give you an idea of when  

A market is overbought or ever sold and in this  case it’s above the 70 so it’s overbought so that   would lead credence lin credits to the support  resistance area my original thought that hey maybe  

I could short this but the other person is going  to look at this and say well okay that’s fine but   we’ve changed the trend anyways and you’ll notice  that we didn’t reach the bottom so uh you know it   shows that we are strengthening regardless  and then you get into that whole argument  

Other traders will look at uh an indicator like  a moving average so this is a 200 week uh ema and   you can see that the market is struggling right  here and you can see that it’s been important  

Several times but there’s been other times it’s  just been sliced through and go down to the day   you can see 200-day ema has offered nice support  offered resistance but notice how we went sideways   there it is starting to tilt to the upside but  quite frankly it doesn’t take a lot of imagination  

To notice that we have been in an uptrend at  least since uh the last several months you   don’t really need an indicator to tell you that  and then finally you know some people will look   at something like fibonacci and they will say well  see look it bounced directly from the 50 percent  

And we’ve returned here this is exactly as  planned this is exactly what should have happened   well the ironic thing is 50 is not actually  a fibonacci number it’s just a throwback to   the old stock trading days so that really  isn’t fibonacci and furthermore you can  

Make an argument and a very strong one that  fibonacci works because it’s a self-fulfilling   prophecy but do you know is it 23 is it 38 is  it 50 is it 61. uh on and on there are other  

Ones that aren’t even listed here that’s going  to work and well that’s part of the problem   it comes down to what you have faith in there  is no best forex indicator out there a lot of it  

Is really how you see the market and what  makes sense for uh for you you know you   should also be able to address the fact  that market conditions change continually   that’s just a facet of the market that makes it  both interesting and challenging so uh you know  

Clearly there were signals to buy on certain  indicators the entire time this was going down   this isn’t to discourage you from using indicators  but it is to give you a heads up to let you know  

That indicators are not to be all end-all they’re  just a tool and like any other tool you have to   understand how the indicator is calculated what  it does best in so for example uh stochastic   oscillator is very uh effective in a range-bound  market but in a trending market it’s almost  

Useless um that type of thing so the answer to  your question what’s the best indicator in forex   is it depends unfortunately there  is no more clear answer than that