Some of the very best forex trading tools are not advanced models or software, but rather simple standard indicators that you can draw automatically on your charts. These standard indicators have been used for years, simply because they work. Two of the best tools for trading Forex are the moving average indicators and momentum based indicators. They may seem basic and remind you of high school math, but they work and in the long run they can prove very profitable.
Before you sign up for a forex broker, make sure that they have the option to draw moving average indicators automatically (standard, exponential, weighted). Most brokers should offer this. I personally trade with Ava FX and they have very easy and intuitive charting. It should be easy to turn moving average on and off on the charts.
Moving averages have been around for decades and are used for many things besides trading Forex. The most commonly used moving average indicator is the simple one. Moving averages are used to ‘smooth’ the price lines, which lets you spot trends easier. Trend idenfication is the most important skill for a trade to have. You want to know which direction the trend is headed before you place a trade.
