Selling Forex indicators is a comparatively new business as it could only flourish once personal computers and internet became publicly available and affordable to the wide masses. Yet “new” is not the word to focus on from the previous sentence, but “business”.
With its virtually immediate commodity liquidity Forex is as close to the ideal market as possible and it is quite obvious that such a facility would appeal to anyone looking to invest their money against an expected ROI of tens, hundreds and even thousands of per cent per year. It is estimated that almost 200 million people are trading on the Forex market and what is not an estimate here is the average daily turnover of already 7 trillion USD!
Well, that is a market that would attract a lot of attention. Merchants can sell virtually anything to the forex traders – virtual private server accounts, forex brokerage services, rebates, forex robots, expert advisors, forex signals, forex managed accounts and of course – forex indicators.
There is nothing wrong with using these indicators, of course. As long as nobody has convinced you to spend money on a particular indicator promising that this is the “Holly Grail” and it will tell you exactly when to open a trade and when to close it. Such “ultimate” solutions are only possible in a world where a perpetuum mobile exists. If it was possible in the first place it would mean that it was possible to foresee the future! Not guess it, but see into it. Guessing is possible, however it is based on statistical dependencies and as such its results are not 100 per cent correct.
What does a forex indicator generally represent? There are thousands of them, all using different methods to recalculate the price action data and present it in another way to the trader – but they all have something in common, and it is that they all run statistical processing of the price action, which is the bar open, bar close, bar high and bar low. Nothing else. Simply a different way to present to you what you already see on your screen when looking at the currency rate chart.
If you still have doubts about, let us dive into another very simple logical reasoning of what was said so far here. If a particular Forex indicator was so capable of foreseeing the future, than why did its inventor started selling it? Selling is always for money and with such a powerful weapon he or she would make any amount of money trading themselves.
Trade wisely, buy nothing on the basis of promises, test everything and question your own motivation as well.