2 Technical Indicators Every Long-Term Forex Trader should Use

Forex trading attracts both short-term and long-term traders. Short-term traders will invariably destroy their trading account at some stage, whilst the more patient long-term trader will often generate some decent profits. That's not always true of course, but there are two technical indicators that will certainly help you achieve your long-term profit targets.

The first of these indicators is the 200 day exponential moving average, or EMA(200) for short. This indicator is used by a large number of long-term traders because it instantly shows you the long-term trend when applied to a daily price chart.

It also tells you which direction you should be trading. For example 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 looking to open short positions.

The second indicator you should use is the supertrend indicator. Now most people won't have heard of this indicator because it's not one of the more common ones. However it is certainly one of the most effective, and well worth downloading onto your charting platform if you do not already have access to it.

This indicator will also highlight the overall trend in much the same way. If the indicator is green, then the price is in an upward trend and if it's red the price is currently trending downwards. So by looking at this indicator on both the current time frame and the longer time frames if you want additional confirmation of the trend, you can instantly determine which way you should be trading.

If you apply both the supertrend indicator and the EMA(200) to your daily charts you should always be on the right side of the trend, which will therefore increase your chances of success. Of course you will probably want to use additional indicators such as MACD, stochastics or short-term EMAs, for example, to pinpoint exact entry points.

However the main point I want to get across is that if you are serious about becoming a profitable long-term forex trader, I recommend you start off by using the two indicators I've mentioned in this article. Once you become familiar with them and are able to instantly recognize the trend, you can then start creating a trading strategy that helps you generate maximum profits from this long-term trend.

Best Forex Trading Course
Find out which forex course gets our highest recommendation.