A free forex indicator is used by the traders for trading and also to maximize their profits. Basically these indicators provide signals in order to buy or sell a trade and also indicate when to trade and when to stop trading, based on the fluctuations in the market. Some of the best features of these indicators are that they have easy to follow instructions, one can quickly learn how to trade with forex signals and they give assured profits. These indicators like CCI indicator are used to calculate the movements of trade in the market and guide the trader accordingly. MACD (Moving Average Convergence/Divergence) is one of the very popular indicators used by the traders for trading, so as to confirm trends by buying or selling the trades in the market. Some of other three popular indicators that are must for the traders to use include:
Moving average lines (MAL): This is very popular and best indicator which demonstrates if a trend is bullish, bearish or nonexistent. These lines will also show the support and resistance levels. When the line is at the support level, it means that the price is moving towards higher level and in the same way when the line reaches the resistance level it means that price is falling. 20-period moving average line is considered to be a consistent line for currency traders.
Bollinger bands: These are the trading bands which are positioned around an exchange price and the 20-period MAL. These bands will display if a currency is trending and also the point at which a currency movement may reverse. These play an exceptional role in describing the support and resistance and also the level of variation in cost of a currency. Support will be at lower level and resistance will be at the higher level.
Average Directional Index (NYSE:ADX): This ADX will work well when it is combined the above two indicators and this indicators basically displays the strength of a trend. When the trend is powerful, it continues and if the trend strength is weak, it will reverse. In ADX below 30 is considered as weak and above 40 levels is considered as strong.
The CCI indicator is a flexible indicator which is used to recognize the new trend of extreme conditions. This was designed by Lambert in order to recognize cyclical turns in products. This CCI basically calculates the present price level with the average price level and in short it can be described as the indicator used to recognize the overbought and oversold levels. Commodity Channel Index most commonly known as CCI is one of the popular forex indicators, with simple instructions and it is very easy to use.
This indicator is one of the forex indicators but it is not included in the list of free forex indicator. A few of the free forex indicators are TCCI, thesecret trend reversal indicator and supply and demand indicator.