Best Forex Trading Indicators Every Trader Should Use - TopAsiaFX

010, Dec 2021


This overview gives a general description of the top Forex indicators suitable for investors and traders: both newbies and professionals. In this article, you will find indicators for scalping, intraday, and long-term trading strategies; for trending and flat markets. Each section contains a link to the detailed description of the indicator with the explanation of signals and examples of practical application.


Technical indicators can be divided into two major groups:

  • Custom Forex Indicators. Custom indicators are original indicators written in the programming language by individual traders. These technical tools are designed for specific tasks or individual trading systems. There are several thousands of custom indicators, and every year there appear new tools or old versions are upgraded.

  • Standard Forex Indicators. Standard indicators are the basis of technical analysis. They are considered the best tools since standard indicators have been tested and brushed over several decades of application in the commodity, stock, and foreign exchange markets.


Technical indicators are the basis for most beginner trader strategies, which are explained in textbooks, trader blogs, tutorials, etc. MT4 includes 30 standard indicators of technical analysis; MT5 – 38. There are more than 60 technical tools in the LiteFinance terminal, and the developers constantly add new tools to the indicator list.

What is a Trading Indicator?

Technical analysis analyzes statistical trends gathered from trading activity, such as price movement and volume, to forecast future price movements and evaluate trading opportunities.

Components of technical analysis:

  • Trading indicators. They are algorithms based on mathematical analysis and formulas, which calculate price values for a particular period. Based on these data, technical indicators project the average price in the future.

  • Levels, trend lines. These are strong levels where a correction could start, or the trend could reverse. These levels can also serve as the consolidation zone borders. Such levels also include support and resistance levels (S/R levels), which could be horizontal, diagonal, dynamic, and Fibonacci levels. The nature of the levels is also of a psychological nature, which is taken into account in forex predictions.

  • Patterns. These are recognizable price chart formations that often reoccur. There could be candlestick patterns also. Patterns usually signal either the continuation or the reversal of the trend.

An important element is also the mathematical analysis of the Forex pattern. Continue reading on Litefinance.