You want to make money in the forex, right? Then you need to use the indicators that professional traders use. Some people want to make trading so difficult. They have in their mind that professional traders have all of these secret indicators and formulas that give them an edge in trading. They suppose that is how profitable traders make their money.
While most professional traders do have certain advantages over everyday Joe and Jane, the truth is that their biggest strength is knowing how to use common indicators properly. We have the majority of the tools professional traders have, we just need to learn how to use them to make money.
One of the basic indicators that most successful traders use is moving averages. Moving averages help smooth the market price so you can more easily see the trends. Also watching how the market reacts around moving averages can provide excellent trading opportunities. Look at it this way – if you see what profitable traders see and trade the way they trade, you will make the money they make.
So what are the most common moving averages that you should use? The first 2 you should look at are the 100 and 200 SMA. SMA stands for simple moving average. Simple averages are the simplest and most basic. Bring up any chart you want on any timeframe and add the 100 and 200 SMA. Pay attention to the markets. See how they react. You will soon fall in love with this most basic indicators, and once you learn how to use them, you will become a very good trader.
Source by Lane Bryant