The best indicators for MT4 (part 2)
We continue our review of the best technical indicators for Forex. In the last article, we examined two relatively good strategies that, albeit not without a flaw, are nevertheless quite effective. And most importantly, they allow you to understand the principle of entering and exiting the market, which is important for novice traders.
Best Forex technical indicators
The effectiveness of the indicator and strategy largely depends on the settings and the “ability to feel” the instrument. To find something of your own, sometimes you have to revise dozens of indicators. If you can immediately see in history that every second signal is false, then we change the settings or the indicator itself. Even additional filters will not help here.
3. CCI, RSI and Stochactic
You can criticize these oscillators as much as you like, but together they give a result close to ideal. In most cases, individually, these instruments are used as a confirmation signal. But due to the different approach to the construction of the formula together, they constitute a separate working system. Therefore, we believe that these best technical indicators should be combined into one group. In a combined form, you could already get acquainted with them here. For beginners: just add the following indicators from MT4 to the chart:
- RSI. Leave the period at 14, but narrow the levels to 65 and 35.
- Stochactic. The optimal settings are 14, 1, 3. Apply – to the closing price.
- CCI – period 14.
Timeframe – 15 minutes. The essence of the strategy is simple – all three indicators should exit their channels into overbought and oversold zones and reverse. It is important that the signals of all three oscillators coincide. If one is just leaving the corridor, and the other is already returning to it, it is better to ignore the signal. Moreover, the signals of the stochastic in this case are secondary, it gives more error, therefore we focus on the first two indicators.
The screen shows two clear signals that turned out to be effective. If one of the indicators only slightly touched the border of the zone, the signal is ignored. If before the signal one of the indicators has been in the overbought or oversold zone for a long time, the signal is ignored. You can experiment with timeframes.
And we will briefly describe other useful and best technical indicators, without describing the details of the strategies, as they have already been discussed in the corresponding section of the FxCash blog:
- MA… Moving averages remain the best technical indicator. They complement strategies, and other tools are based on them – isn’t this proof of their practicality? Sliding ropes with different periods are one of the strategies.
- Seedus… Convenient switch based on RSI and MA. Does not redraw, gives accurate signals. Delivered to MT4 additionally. An example of a sidus strategy is here.
- Dots. Another switch operator that allows you to make money on relatively short timeframes. If the sidus is more suitable for H1 and higher intervals, then you can work with Dots on M15-M30 timeframes. False signals – no more than 20%, but signals are not very frequent, the second drawback is that the indicator is redrawn. An example of a strategy is here.
- “Darvas Corridor”… Or a Darvas box. One of the variations of channel indicators that really works. The indicator is proprietary, therefore the principle of its construction is not disclosed, but nevertheless it is available for free. An example of a strategy is here.
We will send all these indicators to you for free if you write your email address in the comments. And if you have any questions about indicators or strategies, ask – we’ll figure it out together!