Top Four must-have Forex Indicators in 2017

Top four must-have Forex indicators in 2017

In the world of currency trading, great forex indicators alongside a solid trading plan can prove all the difference between being consistently profitable or falling flat. Here at Littlefish FX we work hard to bring you the very best indicators designed to enhance your profitability.

So read on as we pick out our four must-have Forex indicators for 2017, and explain just why you should be using them every day of your trading life. In no particular order, we start with…

1. Psych Indicator

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What It Does

  • Displays neat visual aid on your charts
  • Tracks market psychology to give clear trading signals
  • Measures percentages longs/shorts in a given period
  • Seeks to align with dominant market trend

Best Thing About It

  • Trades against retail sentiment and trades in line with Banks and smart-money flow.
  • Fantastic trend trading system
  • Can be used on all timeframes
  • Easy to understand, clear signals
  • Works extremely well with other indicators to improve entries or even with basic candlestick patterns

What It Looks Like

EURUSD-Daily-18_04_2014-19_11_2014

Above we can see an example of the Psych Indicator applied to a candlestick price chart.

The indicator has two key elements to it:

  • Firstly, the oscillator in the bottom panel, this oscillator is a pictorial representation of the extremes and mid points of the market psychology. Readings above 80 and below 20 suggest extremes in market participants psychology and suggest the potential for a turning point in the price action.
  • Secondly, the arrow alerts that appear on the chart, these arrows suggest a psychological pattern that gives a high probability of price action to follow the candle that the arrow prints above or below. So when a green arrow prints we anticipate bullish price action to follow and when a red arrow prints we anticipate a bearish price action to follow.

How To Use It

There are numerous strategies we can use based around the Psych Indicator and we go into these in great detail within our Forex Trading Course, but we will of course highlight some basic strategies here for you.

Performance

PsychPerformance1 PsychPerformance
Performance for the Psych Indicator was created using a combined portfolio of currency pairs using money management rules we teach in the course based on our own style. Currencies used in this portfolio are; AUDJPY, AUDUSD, EURAUD, EURGBP, EURJPY, EURUSD, GBPJPY, GBPUSD, USDJPY. Figures produced by finding favourable risk/reward settings for each currency pair under the conditions seen in the past 11 years. Maximum inter-month drawdown of 17.7%

Video – More Info

Get the Psych Indicator Here!

— The Psych Indicator is available free with our Forex Trading Course. To find out more or purchase the course, click here

2. LFX Order Flow Trader

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What It Does

  • Tracks orders in the market to anticipate price movements
  • Combines Order Flow techniques with trend following
  • Displays neat visual aid on your charts

Best Thing About It

  • Made OVER 39,000 Pips in 2014 across six pairs
  • Extremely easy to use and very powerful
  • Works on all timeframes
  • With minor tweaks and optimising per underlying asset, it can make 20% per underlying per year on low to moderate risk
  • Could be the only trading product you ever need

What It Looks Like

EURUSD-Daily-29_01_2014-01_12_2014

In the chart example above we can see how the Order Flow Trader indicator is represented on our price charts.

The indicator has two key elements to it:

  • The indicator creates a pictorial representation of the order flow positioning of the larger market participants It does this in two ways primarily it creates an arrow alert that alerts us to a change in flow green represents buying pressure and red represents selling pressure.
  • The second aspect of the indicator which serves as a continuous confirmation or filter is the shading and dot representation on the charts. Once a green/buying pressure arrow appears the next candle if it confirms the continuation of the current order flow will print a dot under the candle and a shaded area around the candle of the same colour as the order flow direction.

How To Use It

There are numerous strategies we can use based around the OrderFlowTrader Indicator and we go into these in great detail within our Forex Trading Course, but we will of course highlight some basic strategies here for you.

Performance

OrderFlowPerformance1 OrderFlowPerformance

Performance for the Order Flow Trader was created using a combined portfolio of currency pairs using money management rules we teach in the course based on our own style. Currencies used in this portfolio are; AUDJPY, AUDUSD, EURAUD, EURJPY, EURUSD, GBPJPY, GBPUSD, USDJPY. Figures produced by finding favourable risk/reward settings for each currency pair under the conditions seen in the past 11 years. Maximum inter-month drawdown of 15.1%

Video – More Info

Get the Order Flow Trader Here!

— The Order Flow Trader Indicator is available free with our Forex Trading Course. To find out more or purchase the course, click here

3. Pin Bar Indicator

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What It Does

  • Automatically highlights Pin Bar on your charts
  • Neat, clear visual aid
  • Marks entries, stop loss and reward targets on your charts automatically

Best Thing About It

  • Scans markets for pin bars so you don’t have to spend hours scouring the screens and ensures you don’t miss any trades
  • Fully customisable so you can find and set the parameters for your optimum pin bars
  • Works brilliantly with other indicators for high-probability trade setups.
  • Extremely effective on all timeframes

What It Looks Like

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$USDJPY (Daily) 01_12_2014 - 18_03_2015

There Are Two Key Elements To This Indicator:

  • In the first chart above you can see the Pin Bar detector highlighting Pin Bars with Red arrows for bearish pin bars and green arrows for bullish pin bars.
  • In the second chart above you can see the Pin Bar detector markers highlighting the Entry, Stop Loss and reward levels for the Pin Bar.

How To Use It

There are numerous strategies we can use based around the Psych Indicator and we go into these in great detail within our Forex Trading Course, but we will of course highlight some basic strategies here for you.

Performance

PinBarIndicatorPerformance1 PinBarIndicatorPerformance

Performance for the Pin Bar Indicator was created using a combined portfolio of currency pairs using money management rules we teach in the course based on our own style. Currencies used in this portfolio are; AUDJPY, AUDUSD, EURAUD, EURJPY, EURUSD, GBPJPY, USDJPY. Figures produced by finding favourable risk/reward settings for each currency pair under the conditions seen in the past 11 years. Maximum inter-month drawdown of 25.93%

Video – More Info

Get the Pin Bar Indicator Here!

— The Pin Bar Indicator is available free with our Forex Trading Course. To find out more or purchase the course, click here

4. COT Indicator

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What It Does

  • Automatically downloads weekly COT data from C.F.T.C report
  • Displays clear and easy-to-read measure of positioning both current and historical
  • Maps the direction of market participants

Best Thing About It

  • Used within many funds and hedge funds to generate consistent annual returns
  • If used on 4 or 5 key underlying assets on basic 182 day settings, you can easily return 10% per underlying on low to moderate risk per year. As a retail trader you can use leverage and easily multiply this.
  • Means you don’t have to spend time deciphering the weekly data which can be daunting
  • Gives you a clear directional guide of where Banks & Institutions are trading
  • Allows you to track historical positioning against historical price movement to build profitable trading strategies easily.

What It Looks Like

GBPUSD-Daily-21_04_2014-28_10_2014

In the above chart we can see the COT indicator represented in the 6 panels featuring blue and green lines. Each panel is tracking a different measurement

  • Index – A normal stochastic on net positioning
  • Strength – Simply the net long position over the total net position, indicating the strength of the movement in overall positions
  • Momentum – Represents the difference between current Index and same Index 6 periods ago to provide a reference for trends reaching an end point
  • Net Position – Shows how the three types of market operator (Commercial, Non-Commercial & speculator) are positioned
  • WILLCO – An adjusted variation of the Index measure giving a slightly smoother reading
  • Open Interest – A volume tool showing the amount of open positions in the market

The Indicator Has Two Key Elements To It

  • The green line shows the Non-Commercials (Banks & Institutions) that we look to align our trades with and the blue line shows the Commercials ( Corporates, Multi-Nationals) that we want to trade against
  • In the chart above we only use green and blue lines for Non-Commercial & Commercial positioning but there is an option in the settings to turn on red lines showing speculators ( leveraged funds & other reportable)

How To Use It

There are numerous strategies we can use based around the COT Indicator and we go into these in great detail within our Forex Trading Course, but we will of course highlight a few basic strategies here for you.

Performance

COTPerformance

Performance for the COT Indicator was created using a combined portfolio of currency pairs using money management rules we teach in the course based on our own style. Currencies used in this portfolio are; AUDUSD, EURUSD, USDCAD, USDJPY. Figures produced by finding favourable risk/reward settings for each currency pair under the conditions seen in the past 11 years. Maximum inter-month drawdown of 15.67%

Video – More Info

Get the COT Indicator Here!

— The COT Indicator is available free with our Forex Trading Course. To find out more or purchase the course, click here