Many traders are including technology to take trading decisions also. They use various technical indicators so that they can arrive at right trading decisions. Even forex signals are now being provided by forex brokers where signals signify right entry and exit price of various currency pairs.
Indicators could be quite useful for making trading decisions since they provide additional information that helps traders to improve the quality of decisions taken. Actually, there are two ways to use indicators in trading: - as an additional cofirmation for chart pattern or setup, - as the main element of independent strategy. In the first case, trader makes his decision based on the signal provided by the particular chart or price action pattern. For example, it could be trendline breaching or one of the popular candlestick or price patterns. In this case, indicator helps to reduce the number of false signals by providing an additional confirmation. Sometimes a strategy could be build solely on indicators. For instance, trader could enter position using signals provided by one or several indicators. The most popular indicators used independently are RSI and various moving averages.
