Forex indicators - the best settings

Technical analysis indicators (pot. Forex indicators) are mathematical formulas most often presented in a graphical manner, which are based on the price of a financial instrument or its derivatives. By analyzing this parameter from various angles, investors try to obtain signals to conclude or complete a trade. By adding more, or simply creating analytical combines from them, they try to filter them out so as to conclude only the most "certain" transactions. There are a whole lot of indicators, followed by their various versions and variances. In addition, most of them give the investor the ability to configure any parameters. This makes the possibilities of price analysis almost limitless.

Which indicator settings are the best?

Such questions can often be found on internet forums. Someone heard about the new indicator that he liked visually and decided to implement it in his system. Huge mistake. Let's start with the fact that there is no such thing as "best settings". It is different if we say that these are the best settings in a given trading system, for a given financial instrument, in a given time period on a given interval. Then you can still agree, if practice confirms the theory.

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Know the forex indicator well

Just knowing the name of the indicator, a friendly appearance and clear signals that it generates is definitely not enough. Why use an indicator that gives us signals but we don't know how it works and what it is based on? It is worth finding out based on what and how it generates a signal for us. Knowing its strengths and weaknesses it will be easier for us to use it. In sensitive situations, we will know that at the moment we should limit confidence in his indications. In addition, when implementing it into the transaction system, it must make sense. If we add three oscillators based on something else, whose main goal is to catch points of sale / sell out, and we will try to use them to trend setting this action has no logical sense.

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Standard settings

Standard settings are usually those recommended by the author of a given analytical tool. According to his research, they proved to be the most optimal. The question is only at what interval, on what market, on what characteristics the research was conducted. Each instrument moves in a different way and has its own specificity.

Therefore, after all, it is recommended to observe the forex indicator, how it behaves in a given market in which we want to use it. Possible changes in parameters should also consist of close observation of the indicator's behavior relative to the instrument's price.