The forex market can be traded in a number of different ways. Trading system and techniques tend to vary from traders to traders in the forex market. If you look at the professional traders then you will notice that every single one of them is using their own trading system in the market to execute high-quality trades in the market. Indicators are one of the most powerful tools that the traders can use to filter the false signals in them market. If you look at the professional traders in the United Kingdom then you will notice that every single one of them is using one or two indicators to filter the false signals in the market. But in order to filter the best trades by using the indicators, you need a professional trading platform like SaxoTraderGo offered by the high esteemed broker Saxo. In this article, we discuss how to use the oscillators like the pro trader.
Figure: Robust trading platform offered by Saxo
What are oscillators?
Oscillators are nothing but indicators. They are often considered as the leading indicators in the forex market as they give early trading signals to the professional traders. The expert in the forex industry use these indicators to find the overbought and oversold condition of certain assets in the financial market. If you are relatively new in forex trading then you should use demo trading account to find out how this indicator works in the market. The most popular oscillators in the forex market are RSI and stochastic. But when you use these two indicators in the forex make sure that you use the higher time frame in the market.
Overbought and oversold conditions
The price of certain financial assets tends to fall after the oscillators become overbought reading to the trader’s in the market. Similarly, when it becomes oversold, the price of certain financial instrument rises up in the global market. Most of the professional traders trade the key support level by using the oversold conditions of the oscillators in the market. Just like the oversold conditions the overbought readings of the oscillator helps the traders to execute sell orders in the market at the critical resistance level. However, if you are relatively new n in for trading then try to learn the use of oscillators by using the demo trading account offered by professional broker like Saxo. It’s true that in the very beginning it will be extremely difficult for you to use the different readings of the indicators but if you trade with an extreme level of discipline then you can easily execute high-quality trades in the market.
Different settings of the indicators
Every single indicator in the forex market can be used with customized value. Most of the professional trader use their demo trading account to develop their own trading strategy by using the modified value of the indicators. But when you use the indicators in the forex market make sure that you are not trading with too many indicators on your trading chart. Try to trade with a clean chart because if you load up your chart with tons of indicators then it will be extremely difficult for you to find the best possible trades in the market since you will not be able to see the price action signal in the market.
Summary: indicators can help you to execute high-quality trades in the market but in order to do so you need to learn the use of the oscillators perfectly. Indicators should be used as helping tools and it should never be considered as prime trading tools. When you filter the false signals in the market by using the indicators make sure that you use the higher time frame in the market to increase your winning edge.