Economic Indicators to Watch for Forex Trading in India

By admin_mutual | Aug 01, 2023

Investors are always looking for the best opportunities to invest in foreign exchange so that they can rake in maximum profits. To achieve this goal, they make use of a number of indicators that can help them to determine the nature of the market that they are looking to invest into at any particular given point. With the help of these indicators, it is possible for a forex trader to understand when they should buy and/or sell within the market. Such indicators play a crucial role in the investment practices within the forex market and thus traders, investors and analysts must be knowledgeable about such indicators.

Here is a look at some of the most important economic indicators to watch for Forex Trading in India.

Moving Average (MA)

The main goal for the moving average (MA) indicator is to point to the average price value for a particular period of time that has been taken into consideration. So if the current price trades are found to be above the MA or moving average, it shows that the buyers are in control of the price. On the other hand, if the price trades fall below moving average, that would mean that the sellers are in control of the price. Thus, the trader must focus on buying when the price stays above moving average.

Fibonacci

The Fibonacci indicator is based on the Fibonacci sequence and it is considered to be one of the most important forex indicators. It has the golden ratio of 1.618 and it helps to determine the direction in which the market is moving. One of the best things about the Fibonacci indicator is that it helps traders to identify areas and the possible reversals where it is easy to make profits. The Fibonacci levels are calculated and computed when there has been a major up or down movement within the market and it seems that it has somewhat flattened out at a specific price level. So the Fibonacci retracement levels helps in determining the trajectory in which the market may retrace and go to its original direction.

Bollinger Bands

Bollinger bands indicator helps to chart the points of entry and exit for a trade when it becomes important to calculate the price volatility and trends of some particular security. There are three bands associated with Bollinger bands, namely lower, middle, and upper. Such bands help in determining overbought and oversold situations.