Best Forex Trading Indicators a Combination

Forex trading indicator combinations

What is the Most Accurate Forex Indicator?

Identifying the best indicator combinations in Forex can help your trading strategy immediately improve. Technical indicators help traders analyze currencies, stocks, and other tradable assets. With the right combination of technical indicators, you can predict whether a speculative asset is likely to increase in value.

In today’s blog post we will discuss which indicator and indicator tool combinations are in my opinion the best in the field of Forex trading.

You, as the reader, are highly encouraged to add your opinion in the chat down below. There are certainly existing combinations that I have not mentioned. Please take a minute to let us and other traders know about your favorite indicator combinations. We also have training for the ADX Indicator.

Identifying the best indicator combinations in forex

For now, we’ll focus on technical indicators–later we’ll focus on price action trading strategies. Price action reading and candlestick patterns always have universal importance, no matter what strategy or analysis is done. The below-mentioned indicator combinations are only considering indicators and tools, and price action and candlestick can always be added.
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Second, of all, the post is only considering the best combinations of two (2) indicators or tools and nothing more. The chart is best served by keeping it simple, and it is important to avoid the paralysis of analysis via overcrowded charts.

Some trading strategies will utilize three technical indicators, or even more.

How to use Forex Trading Indicators

The best trend indicator combinations in forex share the following characteristics:

  • Use an indicator and tool that provides information about trend & momentum, patterns, and support & resistance (read more here).
  • Use indicators and tools that have a different purpose. The value of any indicator or tool diminishes when they are used for the same goal. If you place 2 medium speed EMA’s on the chart and also the Ichimoku indicator, then this is using 2 indicators for the same purpose: trend identification.
  • Use indicators that support each other, have meaning and value for you and keep your charts clean and understandable. No matter what any trader says, the most important is that the indicators and tools make sense to you.

What is the Best Forex Indicator Combination?

The following are what I consider the best forex indicators.

Accurate Forex Indicator Combination that works for any trader.

Strike (entry, trend) & ATR (exit, momentum):

The strike indicator is a great method of identifying the trend and spotting situations where the price is making a pullback and continuation. The strike tool also clearly shows where the entries are located via a painted candle on the chart.

The strike is a great combination with the Average True Range (ATR) because the latter defines the exit zone and spot. Together, they help simplify the entry and exit plan with clear and concise rules and leave zero room for doubt.

You can learn more about this method here:

Accurate Forex Indicator

Fibonacci (S&R, entry, exit) & trend lines (trend/patterns):

The Fibonacci tool is very multifunctional as it can be used for entries, exits, support & resistance, and even some patterns (Gartley). Fibonacci tools are the best when a market is trending and NOT ranging and that is why trend lines are important.

Trend channels help with identifying the trend, which helps traders avoid using Fibs at the wrong times in choppy markets. Trend lines are also instrumental when identifying patterns, like flags and triangles.

These very same indicators can be the best technical indicators for day trading.

indicator combinations in forex

Awesome oscillator (trend/momentum) & fractals (S&R, entry, exit):

The awesome oscillator is a method of analyzing where the trend is by checking where the histogram bars are positioned in comparison to the middle line (on a one-time frame higher than entry).

The distance between the histogram bars and the zero lines also indicates the strength or lack of momentum.

The fractals indicate simple and quick visualization of support and resistance and can help indicate the breaking point for entry when trading with the trend and momentum of the awesome oscillator.

forex trading indicators

Forex Trading Indicators: A method for precision entries.

Fibonacci (S&R, entry, exit) & moving averages (momentum/trend/patterns):
this particular combination is similar to the Fibonacci & trend line pairing. The main difference between a moving average and the trendline is that a moving average is automatically plotted on the chart and the moving average is ‘dynamic’ as it adjusts its level with each new bar.

Trend Line Indicator

A trend line is a discretionary tool that is added to the chart by the trader themselves, like the Fibonacci as well. Also, the trend line is more ‘stationary’ as it will not change its angle due to a new candle. As a last note, the moving averages can be indirectly used for consolidation recognition when the indicator is angled flat (lack of trend).

most reliable technical indicators

Ichimoku Indicator

Ichimoku indicator (all):
the Ichimoku indicator clutters the chart substantially, but it does provide many purposes in one overview. Quite remarkably, the indicator can be used for spotting trends, momentum, S&R, and some patterns. This is another one of those simple
indicator combinations in forex

that will really make a difference in your trading if you use it correctly.

best combination of indicators for day trading

Parabolic Indicator

Parabolic (momentum, S&R, entry, exit) & moving averages (trend/patterns):
the Parabolic indicator is a method of identifying setups that are showing a potential break; whereas the moving averages can help identify the trend. By using the moving averages in combination with the Parabolic, traders are able to enter when a price has completed a consolidation and it is breaking for a further trend continuation.

best technical indicators for swing trading

The largest risk is a false breakout or reversal. Both dangers can be somewhat limited when using candlesticks and divergence.

The parabolic SAR indicator is one that we believe is the most
accurate forex indicator
because it helps you get in right when the price begins to change.

That is an extreme advantage.

Divergence Indicator

Divergence (momentum, trend) & trend lines (S&R, entry, exits):
a divergence indicator like the RSI, MACD, or AO, provides valuable information on whether the trend and momentum have sufficient power for a trend continuation. A lack of divergence means that a trend has sufficient speed to maintain itself and trend lines can be used to take trends with the trend.

A chart where divergence is present means that trend trades are on hold and potential reversal trade setups are in the picture.

best combination of indicators for day trading

Of course, the more divergence on a one-time frame and the more divergence on other time frames increase the likelihood of a reversal setup indeed materializing profitably.

Divergence is a great indication that a price move is getting tired and that a change could be coming soon.

Forex Trading Indicators FAQ

What are the 4 types of indicators?

In technical analysis, all types of indicators fall into one of these 4 categories:

  • Trend indicators (moving averages, Bollinger Bands, MACD, etc.)
  • Momentum indicators (RSI, Stochastic, ROC, etc.)
  • Volume indicators (OBV, Money Flow Index, etc.)
  • Volatility indicators (ATR, Bollinger Bands, etc.)

Which indicator combination is best for intraday trading?

VWAP + pivot points are the best combination of technical indicators for intraday trading. The best technical indicator for day trading is the volume-weighted average price VWAP which represents the mean price based on both volume and price. At the same time, pivot points are a useful indicator to determine dynamic support and resistance levels.

What is the best combination indicator with RSI?

The RSI indicator together with short-term moving average crossovers is a powerful indicator combination. For example, using a 10 and 20-period EMA crossover plus the RSI momentum readings can confirm the overbought/oversold conditions and the potential reversal.

Which forex indicator is most profitable?

The Volume Weighted Average Price (VWAP) is considered and praised by many traders to be the most profitable forex indicator. The VWAP puts emphasis not just on the price but also on volume, especially the higher volume periods.

What is the best indicator for forex trading?

There is no single best forex indicator because each indicator serves a different purpose. The profitability of a technical indicator lies in the hands of the trader and his abilities to make the best out of the indicator’s readings.

Is Parabolic SAR a good indicator?

Yes, the Parabolic SAR is a good technical indicator, especially in trending markets. The Parabolic SAR indicator is mostly used for placing trailing stop-losses or to find the general market direction.

Final Words – Best Indicators for Trading Forex

When trading it is always a good idea to get the best forex trading indicators that you can and understand the top indicator combinations in forex. Also, be sure you are using the most very
accurate forex indicator. Also, be sure to read this article for the Best Combination of Techincal Indicators for other markets.

Thank you for reading!

Please leave a comment below if you have any questions about
The Indicator Combinations!

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Best Forex Trading Indicators a Combination


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