Forex technical indicator is a mathematical manipulation of a security price and volumes aimed at forecasting of future price changes. Trader is able to make decisions about how and when to enter or exit market, which position it is more suitable to open, on the basis of signals from technical indicators.
There are a lot of technical indicators although many of them have very slight differences.
According to their functions, indicators can be divided into three groups:
* Trend indicators help to assess the price direction and detect the turn moments synchronously or with a delay.
* Oscillators allow one to find the turning moments a little in advance or synchronously.
* Psychological indicators provide the information about the overall mood of market participants.
Technical indicators can be drawn up in a separate indicator window or they can be imposed directly into the price chart. For better forecasts several indicators may be used.
Metatrader 4 has a variety of built-in indicators. Use the menu at the top of the page to find out more about them.
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