There are hundreds of different types of indicators found in this forex world. This indicator is basically a script or program written by the programmer. Here I will discuss some frequently used or commonly used "indicators". Indicators typically indicate market conditions overbought / oversold. The market will often reverse when the indicator shows OB or OS. However, such situations do not always apply. Here are the 4 types of commonly used Indicator: 1. Moving Average (MA) 2. Moving Average Convergence Divergence (MACD) 3. Bolinger Band (BB) 4. Relative Strength Index (RSI) Moving Average MA is one of the most popular indicators. There are several types of moving average. Simple Moving Average, or Exponential Moving Average (EMA), Weighted Moving Average (WMA). MA is the approximate market closing price for a set time. The MA is a line that will move up or down, according to market direction. Example: To calculate MA for 10 days (10MA) is as follows We will mix market cover prices for 10 days and divide up to 10 days. Below are examples of 100MA and 50MA. All calculations will be made by the program One of MA's main functions is to know which trend is going on. The MA is a type of lagging indicator. It means it moves according to price. So this MA does not predict anything, It's just "confirm" that a trend (uptrend or downtrend) is going on As in the above example, in an uptrend, Ma will be below the market price and it will leap over, and vice versa in the downtrend. For example, most traders will consider keeping their long positions longer when market prices are above a moving average. "Momentem" or trend strength can be changed by using a smaller MA, for example less than 20 days. The smaller the price estimate is stronger than her momentum. Often the MA less than 20 days can be classified in short-term, 20-100 medium term and 100 over long term trends. Traders usually use more than 1 MA to see the overall market movement, in terms of short, mid and long term MAs can also be used to determine the "level" that can be regarded as support and resistance. MA examples are used as resistance. Another MA function is to set our SL. The MA feature that can be a support or resistance is a "tool" that we can use to minimize our risk in our trade. In this example, we consider MA200 as a support, and have long open positions, what can be done is SL we can set it under this line support. One of MA's downsides is that it's useless when the market is consolidating or flat. Examples below illustrate MA's disadvantage when the market is not trending or not in trend, uptrend or downtrend conditions. Be careful with "lag" MA. Since all MAs are lagging, the signal is given by the MA is often slow, when the market has already made its move. Such a situation will always apply. The basic way to utilize MA for trading is "crossover". That is when the market moves from the bottom of the MA downwards, or moves from bottom to top. Another "crossover" method is to use more than 1 MA. This type of "crossover" applies when MA "shortterm" intersects with MA "longterm". This method is used to identify "momentum" or the strength of a market movement. The long signal is generated when the MA shortterm intersects the MA long term and the signal for short is produced when the MA shortterm intersects the MA longterm. The example below shows the signal for long result. "Triple crossover" is a method that uses 3 types of MAs. For example MA5, MA10 and MA20. By adding MA, fake signals can be reduced. Examples of buy signals. When MA5 intersects with MA10, and rises to the top, this indicates that buy signal has been generated. However, traders can wait until MA10 is traded with MA20 and goes up. MA10 intersects with MA20 can be used to confirm the buy signal produced by MA5 and MA10.