Using candlestick charting alone can be difficult, so many traders use well-known technical indicators that help to present more information. Technical indicators are algorithms that are created using mathematical calculations. They are often overlaid on top of the candlestick chart, to show patterns or present new information. Alternatively, they may be viewed on a chart without candlesticks present.
Many trading platforms have standard technical indicators included. On the MetaTrader 4 platform, you can find them under the Insert menu. Traders may create their own indicators to help find patterns or insight for their own trading strategy. These can be found under Insert > Indicators > Custom.
Do not use all indicators just because they are available.
Some of the best indicators are the simplest. As you’ll learn soon in trading psychology, the more traders that see a pattern emerging, the more likely it is to follow through. Therefore, using the simple indicators with the default parameters show the same story to all traders.
Below are the key indicators that you should learn, we’ll provide examples of each one in turn.