What is Forex Robot? Differences between Robots and Indicators

It is very important to make accurate price predictions and take a position accordingly in order to increase your earnings rates in the Forex markets. In order to make accurate price predictions, it is necessary to follow the expert analyzes of the market and to investigate the reasons that bring the price to that point. You can also use different tools to support your price estimates. Importance of Using Indicators in Forex?

Indicator Concept in Forex Markets

Indicators, also called ‘mathematical indicators’ in Forex; It is graphical data that makes predictions for future price levels by averaging the price history with statistical calculations. There are many indicators, oscillators and helpful tools to support your price predictions in the Forex markets. Indicators are auxiliary indicators in technical analysis and are very useful for predicting the price change that your investment instrument will experience in a certain term. Forex indicators can send you positive or negative data about the points where you will open a position. Thanks to these mathematical data, you can open your positions in the most appropriate way or update your opened positions.

Forex Robots and Indicators

Another tool widely used in Forex markets is Forex robots, also known as Expert Advisors. Forex indicators and forex robots are two concepts that should never be confused. While the Forex robot is automatic software that is authorized to open or update positions on your behalf, indicators are analyzes that provide you with healthier information and allow you to make price predictions. The use of forex robots, also known as Expert Advisors, is prohibited due to negative reasons such as forex robots not providing the same benefit to everyone, the large size of losses caused by software, and the transformation of robots into a commercial earning system. Since the strategies of Forex robots are automatic, a robot that does not match your investment strategy may cause you to experience big losses, but you can be more successful in your investments because you determine the whole strategy in the indicators.

Using Indicators in Forex

Just as each instrument has a different value in the markets, price predictions for each instrument are made using different analyzes and indicators. For this reason, it is very important that you know the content of the indicators you will use and learn the details. Because variables such as moment, trend, power, trend, volatility, cycle may also differ in your instruments. If you use purposeful and correct indicators, your success will increase at this rate.

Types of Indicators in Forex

There are many indicators for your needs in the markets. We have listed the most commonly used ones for you below.

MACD (Moving Average Convergence/Divergence): It is an indicator that creates moving averages depending on the convergence and divergence of the changing values ​​of the currency parity in the market.

Bollinger Bands: It is an indicator used to determine the price movements of instruments with a high volatility rate.

RSI (Relative Strength Index): Developed by J. Welles Wilder, the Relative Strength Index (RSI)- is a momentum oscillator that measures the speed and change of currency movements.

Moving Average: If you assign this indicator to the parity you have chosen, it takes the average according to the time period you are on and creates linear graphs accordingly.

Momentum: It is the indicator that indicates the fluctuation rate of the currency parity in the market.

SEE ALSO; The Importance of Inflation in the Forex Market

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