Best Leading Forex Indicators

When a beginner forex trader starts to using metatrader4 trading chart, usually they only find forex technical indicators like a Bollinger bands, stochastic, MA, MACD, or RSI that gives how the prices move bullish and bearish. The basic calculation of these technical tools is that they only calculate the past candlestick bar data like an open, high, low, or close to determine the next market price movement.

All of these is OK with finding at the past trading periods in the price to define whether the prices are moving in trend or moving in sideways. This system usually is the best strategy to have the trend of the market prices. In other words, opening a trading position can be good to be done through market price fluctuation or sentiment with a leading indicator.

Leading indicator
There are so many forex leading indicators in Forex trading, and it is very helpful if we understand the best ones so that we can use one that can works good with our trading system. The main purpose of a leading indicator is to assist us to define the next market movement.

Pivot points
Pivot points is the most popular one, this system is the most accurate leading indicators. Pivot points is built from calculation of last open, high, low, and close price and then the result is attached on the trading chart platform to bring us critical levels like a support and resistance.

Elliott Wave
Elliott wave is a trading system about the price in how the market move in trends and reversals. The main structures are that movement divides into 5 trend waves and 3 reversal waves.

Trading indicator assists you to see or read the market movement more easier. These leading indicators can be a handy tool after you understand how to use them correctly.