There are thousands of indicators that are used to find opportunities in the market and profit from them. However, most of them do not give good signals and will get you in the market late. In this article we will present several indicators which are the most accurate and give the biggest trading edge. The Bollinger Bands The Bollinger Bands were developed 20 years ago by John Bollinger, and were designed to show the volatility of the market on the screen in an easy-to-comprehend manner.
When price touches the lower band it is oversold, and when price touches the upper band it is overbought. The trading method for the Bollinger Bands is basically to look for price-action support and resistance levels, and confirm them with bounces on the Bollinger Bands themselves.
This results in very high win rate and consistent profits. Welles Wilder, and is considered a powerful trading indicator that also has a predictive edge in the markets. It is a very accurate indicator that we highly recommend. Most traders use it as a trend-following indicator to enter trades after a trend has been established, however we use it in an entirely different way. The most accurate and predictive way to use the SMA is in the bounce method: Once a reversal signal is given we enter a trade in the direction of the trend with stop loss right below the moving average, thus entering at a tactical point with small stop loss and huge reward.
The 3 indicator described above are the most accurate indicators for trading Forex and stocks, and have proven themselves in countless opportunities. Michael Wells is a trader and author, that focuses on Forex indicator trading and price-action to generate daily trading income. We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.
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