Main indicators are defined as the things you need to know before you trade. Most of the people I know use the candlestick method most of the time. I prefer to use moving averages.

Moving averages are another great tool that can help you to spot forex trends. The candlestick is a more main indicator but it does not stand alone.

Let’s take an example. If you want to sell EUR/USD, you should find the market sentiment more bearish. Now the reason behind this is that there are more bears than bulls. If you use the candlestick method, you will get a confirmation signal from the candlestick bars. This is something that cannot be done with the MACD.

The one thing that cannot be done from the MACD indicator is that it cannot determine the direction of the trend. However, there is a way to be confident that the trend is moving in a certain direction.  You can take the EMA ( exponential moving average) as a way to find the trend.

Here is an example. You spot a large upward movement, say, the weekly or monthly trend. You will need to consider your average and calculate the EMA. Now you watch for a small short movement say, 20, 30, or 40 pips. When you see this, you will want to have the EMA 20, 30, or 40 like 100, 150, or 200.

So you are looking for an early, intermediate, or later reversal to continue in the trend. However, you will not necessarily trade exactly when you calculate the EMA.

For instance, if you are trading at the EMA (5), you will want to trade a currency pair that has a strong short-term trending movement. However, you will not want to enter the trade if the currency pair is in a solid short-term trend. This is because the EMA (5) is derived from the EMA (20), so if the currency pair is solid and you trade through the EMA, you will lose the prevailing large upward movement.

For this reason, you should never eliminate the need to calculate the EMA from your trading routine. You should always use it though as a possible point of support or resistance for entering a trade.

If you use the EMA (5), you will want to trade a currency pair that is in a short-term trend. However, you will not want to enter the trade if the currency pair shows signs of a reversal. This is because the EMA (5) is derived from the EMA (20), so if the currency pair is solid and you trade through the EMA (5), you may lose the prevailing short-term trend.

The best use of the EMA (5) is to enter a trade when you see a small move (20-30 pips). If you trade at this level, you will lose the majority of the move but if you are patient and look for a reversal, you will be able to ride the reversal and exit the trade at the most opportune times.