Forex Technical Analysis based on experience and research.

Preferred indicators

In this article I will summarize the indicators I use. The indicators with the highest value are the Ichimoku, MACD and the Parabolic SAR. The most important for placing the trades are the Bollinger Band and the Parabolic SAR.

Reference article
In this blog I will regularly publish chart analysis of currency pairs so it is a good idea to review the indicators I use. This article can be used as a reference.

Software & hardware
The chart that you see on the left is a screenshot from my mobile phone with 6 inch screen. The software I use is TradeInterceptor.

Screen and history details
I do not need a large history on the screen for my trading so this chart provides me all I need to know. However for my research I also use the desktop version with larger history.

Price itself, Candlesticks
Candle sticks are colored green and red. Just the default as on many other charts.

DeMark Trend lines
These trend lines are colored orange.

The indicator shows blue and orange arrows at the top and bottom of a candle.

On my chart I am using Fractals with the default settings. The nice thing with Fractals is that it can show where prices make excessive moves which can be seen more as acting on sentiment being stopped by technical or psychological factors, like round numbers. This makes Fractals a very good indicator together with e.g. DeMark trendlines which can show these resistance areas more clear, see image.

Parabolic SAR
This indicator has white dots.

Pivot points
I use the weekly pivot points. These are displayed on the right and with colored dotted lines, orange, gray and green.

I use Fibonacci based on the daily and weekly charts.
The light blue horizontal lines are the daily and the yellow horizontal lines are the weekly.

Bollinge Bands
The upper band is green and the lower band is red. The middle line is dotted.

Donchian channel
The lines are yellow and dotted.

Ichimoku indicator
This indicator has several lines and a cloud.
  • Tenkan-Sen is light blue (MA 9)
  • Kijun-Sen is dark blue (MA 26)
  • Chikou span is yellow
  • Bullish cloud is gray
  • Bearish cloud is red

MACD indicator
This indicator is separate on the bottom pane.
  • MACD is green and beige
  • Delayed signal line is white and dotted
  • Histogram is blue and red

Short description of use
  • Prices displayed as candlesticks providing a lot of information and I try to use it all. There is a lot of information on the internet about price action and candlesticks.
  • Fractals to see at a glance the most important temporary tops and bottoms.
  • Bollinger Bands in combination with the Donchian channel because this way I have a reference of the latest highs and lows.
  • Bollinger Bands in combination with the Parabolic SAR to identify temporary tops and bottoms.
  • Fibonacci and Pivot points to identify support, resistance, tops and bottoms.
  • DeMark Trend lines for support and resistance.
  • Ichimoku indicator provides a lot of information and I try to use all of it. It goes too far to go into detail here. There is a lot of information available on the internet.
    I use the MA's as support and resistance and for defining the trend.
    The cloud is an important support and resistance area.
    The Chikou span is for trend direction confirmation.
  • MACD is also an indicator that provides a lot of information and I try to use all of it.
    It provides information about trend continuation and trend reversal and it also shows the momentum.
    It is important to give a good interpretation in the context of price development. There is a lot of information available on the internet.
When using the indicators the right way they are of great value. Everybody has his/her own preferences and what works for one person does not necessarily work for another person.

I use the indicators all together and depending on the market situation I give more importance to specific indicators. I also use them in the context of multiple time frames so their signals are of more value.

Although the explanation may seem simple and clear there is always risk involved. I added a disclaimer to my blog for this purpose.