Currency trading can be profitable for both short-term and long-term traders. A large issue of the short-term traders will almost inevitably blow up their trading account at some stage, whilst the more controlled long-term forex traders will often do a great deal better. That’s not still the case of course. However, there are two technical indicators that can be invaluable to you if you do want to be a successful long-term trader.
The first indicator of these indicators that I want to discuss is the EMA (200)-or the 200 day exponential moving average in other words. This is a very popular indicator amongst long-term traders because it gives you an instant impression of the prolonged-term trend when applicable to a daily price chart.
In this forex training on trend following forex indicators, we will start with using crossover techniques that are specifically aimed and recognizing new trends that are developing. Some of the most popular are using the MACD and moving averages.
I really didn’t know!
This is important, as it basically lets you know which direction you should be trading in. So for instance if the EMA (200) is rising then you should only be looking for long positions and if the EMA (200) is falling then you should obviously be thinking about opening short positions.