This review is about indicators in the forex market. As usual, I will answer the most popular questions. What is the most accurate forex trading indicator? Does forex exist without indicators? What are the best forex indicators? What are forex trend indicators? How do forex indicators work? How to use forex indicators? You will find answers to these and many other questions in my article.

In this review, we will analyze in detail such indicators as moving average, a stochastic, momentum indicator, relative strength index, Bollinger bands, as well as the famous alligator Bill Williams.

### Introduction

As we already know, there are two main types of analysis of price fluctuations on the exchange – this is technical analysis and fundamental. Both types of analysis were derived and described in detail at the dawn of the formation of financial markets. The structure of each species includes various subspecies. So, one of the subspecies of global technical analysis is mathematical analysis. Nowadays, mathematical analysis has become so popular that it is almost put on a par with fundamental and technical. The essence of mathematical analysis is to predict future price fluctuations based on signals from indicators that use mathematical laws in their work. The basic law that 99% of mathematical indicators use is the law of averaging historical data. In other words, These indicators take as basic data on average price values for a certain period of time in the past and based on these data make assumptions about the average price in the future. In this sentence, I immediately said the main rule of all mathematical analysis, which most traders either do not understand or interpret incorrectly – “make assumptions about the average price in the future”. Remember – the indicator does not give you the exact actual quote, it only gives the value of the average estimated price, or rather, the price range in which the true price may be located. However, if you approach the use of indicators with knowledge of the matter, even this will be enough to get the maximum income in the forex market. or interprets not quite correctly – “they make assumptions about the average price in the future”. Remember – the indicator does not give you the exact actual quote, it only gives the value of the average estimated price, or rather, the price range in which the true price may be located. However, if you approach the use of indicators with knowledge of the matter, even this will be enough to get the maximum income in the forex market. or interprets not quite correctly – “they make assumptions about the average price in the future”. Remember – the indicator does not give you the exact actual quote, it only gives the value of the average estimated price, or rather, the price range in which the true price may be located. However, if you approach the use of indicators with knowledge of the matter, even this will be enough to get the maximum income in the forex market.

### What is forex indicator

As I said above, the indicator in technical analysis is a certain mathematical formula, on the basis of which a program is written that calculates this formula, and produces the result in the form of a graphic image (lines, points, columns, areas, geometric shapes, and so on). According to the formula, which is the basis of the indicator, the values of prices, volumes, areas on the price chart and other parameters that are necessary for traders to make assumptions about the future movement of the price of goods in the future are calculated. There are many methods and laws in the technical analysis itself, but all of them are divided into only 2 groups, depending on what the trader needs to know at the moment: what trend is on the chart and how long it will last, or how to determine the point in which this trend will change. Mathematical analysis, and therefore indicators, also answer these two questions.

So, there are indicators:

- Trend indicators are indicators based on the calculation of price values to answer questions about the direction the trend is operating in the market at the moment and when this trend will end;
- Oscillators are indicators based on the calculation of price values based on the construction of an oscillogram to determine the points of change of trends in the market.

In general, if you want to determine the points at which one trend changes to another, you should use an oscillator. And if you want an understanding of the strength and duration of the current trend, then use the trend indicator. I will say right away that the basis for almost any oscillator is the calculation of the parameters of a trend indicator. This happens for the reason that to determine the point of a trend change, we need to know the parameters of this trend, that is, strength, duration, direction. Without a trend indicator, we cannot calculate this data.

### Conclusion

Of course, this is not a complete list of popular mathematical indicators. But these indicators should be enough to create a trading strategy. Speaking of my opinion, I believe that indicator strategies have more minuses than pluses. The biggest drawback of any indicator is the constant delay, which can not be avoided. It is for this reason that I prefer strategies without indicators.