Home Forums Trading Discussions What are the best indicators of trend direction? Reply To: What are the best indicators of trend direction?

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kattie
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To me i think the best indicators are the trend following indicators. For instance; a Moving Average, Parabolic SAR and Bollinger Bands. With these indicators you can easily tell whether the trend is moving up or down. It is also clear to see that the trend in getting in a congestion or it is about to change course. Normally when such scenarios happen, you are likely to see the indicator get close to the price movement or candlesticks or at times crosses over the candlesticks. When this happens, it gives a signal that you should actually open your eyes wide.

However you should not rely on them as confirmations because they are not 100% perfect. Depending on your trading strategy, there are certain things that your consider to generate confirmations for your trades. Follow your trading plan and choose an indicator that fits your strategy and easy for you to use.