The forex market has always shown unpredictable and chaotic behavior. Even professional traders, not to mention the novice, sometimes cannot predict where the quote will go next. This is where Forex technical analysis indicators can come in handy.

What are Forex indicators?

Forex indicators are instruments for analyzing and forecasting price changes in the forex market. They are calculations based on the volume of a particular financial instrument and its price. Today, every trader can use Forex indicators online. For market participants who prefer to keep their trading instruments on a computer or tablet, there is the option of downloading Forex indicators on any device.

Indeed, we cannot tell you about all the Forex indicators in one article, but you can find them on the InstaForex website. Today, we will discuss only the most profitable and effective technical indicators.

Alligator indicator

The main function of indicators is to determine the direction of the trend. The essence of a trend is quite comprehensible. When the lines on the chart are heading upward, it is a bullish trend. Otherwise, when they are moving down, it is a bearish trend. Most market indicators are trend trading indicators. The leading indicator of the trend is a moving average. It reflects the average price over a certain period of time.

Alligator indicator developed by American author Bill Williams is probably one of the most popular Forex tools. The alligator works by plotting various moving averages (MAs) on a chart. The technical indicator has two main stages – sleeping and waking up. When the alligator is sleeping, its lines are intertwined, and the trend is too weak. However, it wakes up when the lines uncross and start moving, and the trend becomes more prominent.

Scalper Dream indicator

Scalper Dream is the most widely-used Forex indicator for scalping – short-term trading where trades are closed when a small profit is made.

The main task of this indicator is to determine as many favorable entry points as possible. Owing to built-in algorithms, it detects the likelihood of a reversal of the upward or downward trend. As an analysis tool, Scalper Dream is a histogram of bars reflecting changes in the price movement.

The bars, as well as the indicator’s projections, help traders determine the future trend and overbought and oversold levels.

Super Point Signal indicator

Super Point Signal is one of the most favorite Forex indicators among traders. It is used for confirmation of trading entries. The indicator is so popular thanks to its clear signals and the best possible entry levels.

Besides, Super Point Signal is a typical no-repaint Forex indicator. The lack of repaint when switching, as well as opening and closing, time frames allow traders to study the accuracy of indicator signals based on trading history. Thus, they can be more confident when they enter the market. On the chart, indicator signals are displayed as entry points of a certain color, below or above the main candlestick after the close.

Today, Super Point Signal is one of the most popular and profitable no-repaint Forex indicators.

Remember that the indicated value is approximate and may vary depending on a time period.

Equity Chart indicator

Traders sometimes need to know the maximum drawdown in their trading account. At the same time, they do not want to waste time connecting it to monitoring services. It can be problematic and time-consuming because such services often update slow. This is when the Equity Chart indicator can help. This tool is used to show equity and balance in a trading account.


The Equity Chart indicator uses your trading history to plot equity and balance charts. Thus, you can scroll back and track the amount of equity at any time. Apart from that, each closed trade is provided with additional information, such as balance, margin, profit, and drawdown.

The Equity Chart indicator will be especially useful for newcomers to the forex market who just start choosing an effective trading strategy. Using the Equity Chart while trading, you can see how successful your trading strategy actually is.

Summary

Indeed, Forex technical indicators greatly simplify the decision-making process for traders. At the same time, they are not the only thing responsible for success and profits in the market. Today, the size of a profit depends on many factors, including the latest news, quality of brokers’ activities, the speed of order execution, etc. InstaForex has been one of the first to offer traders scalping. Meanwhile, many intermediary firms still do not allow their clients to trade using this popular strategy.

You should carefully consider which of the following indicators to use to succeed in forex trading.