Forex technical indicators consist of mathematical calculations that forex traders often use based on the exchange rate, volume or open interest of a currency pair. Technical traders who operate in the stock market typically look at the price of a stock, but forex traders look at the exchange rate of a currency pair.

As indicators are an important part of Forex trading, every technical and fundamental analyst should know the structure and use of mostly used mt4 indicators.

Indicators also provide you with information that you can combine to create an investment plan. Your investment plan may dictate that you, for example, sell off stocks when Bollinger Bands squeeze, indicating increased volatility. Investors are often quite attached to their indicators and their investment plans. Continue studying different indicators and investment models to find the best method for your portfolio.

Trading indicators are used under the assumption that the Forex market is not random, as some economic theories contend.