What is the Best Technical Indicator in Forex? Now on to beste forex indikator good stuff: Just how profitable is each technical indicator on its own? After all, forex traders don’t include these technical indicators just to make their charts look nicer. Traders are in the business of making money!
If these indicators generate signals that don’t translate into a profitable bottom line over time, then they’re simply not the way to go for your needs! In order to give y’all a comparison of the effectiveness of each technical indicator, we’ve decided to backtest each of the indicators on their own for the past 5 years. Backtesting involves retroactively testing the parameters of the indicators against historical price action. You’ll learn more about this in your future studies. For now, just take a look at the parameters we used for our backtest.
Cover and go long when daily closing price crosses below lower band. Cover and go short when daily closing price crosses above upper band. Cover and go short when MACD1 crosses below MACD2. Cover and go long when daily closing price crosses above ParSAR. Cover and go short when daily closing price crosses below ParSAR.