If you have been online for more than a few minutes, you have probably noticed that there are a lot of companies offering Forex analytics. The reason for this is simple - there is a huge market out there waiting to be catered to. Analytics is becoming a big business with companies all over the world, and many Forex brokerage firms are making it their bread and butter by providing this service. There is software to install on your computer that will collect the information for you. From here, you will be able to see where your money is going, what currency pairs are doing the best, and which pairs look to be in trouble.
Of course, not everything you see will be accurate. You will need the right kind of software to make sense out of all the data. Don't get a cheap software package that you really have to pay for because it gives you indicators that are just fancy labels on a map. Those fancy indicators may tell you that a currency pair is doing well, but they won't tell you how. What you need are those simple indicators that tell you that currency pairs are doing well and doing right at the same time.
When looking for Forex indicators, keep in mind that it doesn't matter if they are fancy or not. What does matter is whether or not they are helping you make the right decisions. Trading isn't an exact science, so there isn't one precise set of rules that can be followed to trade correctly. Some traders think that indicators are the way to go, but that isn't exactly right. In fact, it's better to have the wrong indicators than none at all.
For instance, some people think that the MACD (Moving Average Convergence Divergence) is a great indicator of price change. However, it's not even close to being accurate at the long-term level. It just moves around too quickly to catch-up with the real time price movement. There are better ways to determine the health of a currency.
If you're going to use any indicators at all, look for them to be long-term based. Ideally, you want to look at what a particular currency has done in the past three months. Anything that has been consistent and reliable over that period should be a good indicator of its future performance. There are plenty of technical indicators out there, but if you want the most reliable information affecting your trading decisions, stick with the basics.
Don't fall into the trap of trading the "insider's best friend". There is no indicator that is perfect. If it told you which currency was going to do well, that isn't a sign of a successful trading strategy. If there was such a thing, you wouldn't need any indicators in the first place, because you would know exactly what to trade.
Use the basic rule of thumb: When it comes to trading, it's always better to buy when it's low and sell when it's high. This is a simple principle of economics that you should be aware of. You can't afford to lose money on currency trading if you don't learn how to read price action.
Once you've got a decent grasp on how to interpret price action, you can start using advanced analytics for more detailed and analytical information. However, if you're still a beginner, stick with the fundamentals. It can take a while to become accustomed to the new lingo, so stick with the basics until you feel confident in your abilities. You may also find tutorials and educational material available online that can help. There is no reason to feel intimidated by Forex trading.