After knowing the previous the best indicator characteristic that is easy to understand, let’s continue our discussion about another the best indicator characteristic.
Not complicated
Furthermore, a good indicator feature is related to the signal reading flow and its application in trading. Sometimes, some indicators are easy to understand and easily know the flow of mathematical calculations. Unfortunately, it is difficult to use. If so, then it can’t be categorized as a good indicator. You have to remember that the selection of the best indicators for forex trading is not determined by the level of complexity of its use, but from the ease in helping to find the best signal.
Using complicated indicators is a waste of time. You will only focus on understanding the characteristics of these indicators without obtaining clear benefits. Finally, it will take up a lot of your time. Yet if you think logically, looking for other indicators that are easier will be far more efficient and useful.
Indicators are just tools, not a determinant of profit
The use of forex trading indicators will not determine your trading results. It should be underlined, the indicator is just a tool to help traders in reading signals. Thus, data processing analysis and absolute decision making are in the hands of each trader. Loss or profit depends on how reliable the trader is in utilizing momentum to open positions. Additionally, personal skills and psychological management expertise also influence the profit. In conclusion, the indicator is not the main factor causing loss when trading forex.
According to My Trading Skills, finding the best Forex indicators can be quite hard. However, you can try to recognize the characteristics of a good indicator to increase the chances of success. In this case, you can see from two sides. First, you can see from the ease of understanding indicators. Second, you can see from the level of complexity of the application and reading of the indicator signal.
Read more: What is Technical Analysis in Trading?