Indicators are a cornerstone of technical analysis. There are hundreds available to you on your trading platforms. The key is to figure out which ones work for you and your personalised trading strategy. Each indicator is used for a different reason, however, if kept simplified then indicators are a powerful tool when seeking ‘high probability’ trading setups.
You can stress test different indicators on a demo account to see whether they are the one for you or not.
Lets have a look at how you would implement an indicator on your trading platform, below.
Left-click Insert > Indicators
Choose an indicator.
Leading indicators are grouped under ‘Oscillators‘, lagging indicators are grouped under ‘Trend‘ indicators.
Once you have chosen and selected your indicator, a pop-up box will appear and ask you to insert the parameters you wish that specific indicator to follow. Once you insert the parameters, left click OK.
For example, we have chosen to use Bollinger Bands with the following parameters:
Apply to: Close
Your indicator should now be applied to your chart. Check out our Bollinger Bands, below.