Indicator – is the signage in the market, the definition of some changes of trend. You can use different indicators of technical analysis if you work abroad or in stock exchanges, but it is not recommended to use more than three of them. For a better understanding of the indicators, it is worth referring to the formulas on the basis of which they are constructed. The formulas can be complex or easy.
The indicators in the first category determine the trend and show whether the market is overbought or oversold. Stochastics and RSI can be included in this category. It does not make sense to use both, you must understand that any signal must be determined by an indicator, it is not necessary to draw indicators of a type to define the movement of the market. The technical analysis indicators are necessary to determine the movement of the price or confirm the existing signal. Fractals can be included in these indicators, which confirm the crocodile signal in the determination of the trend. Traders often use three indicators: the amounts for support and the definition of resistance levels, the trend indicators, which will help you determine the movement of long-term price and oscillators. To choose the right strategy, it is necessary to use indicators with safeguard measures because they can not give a signal of one hundred percent.