Forex indicators are essential tools for the trader. Indicators are a series of data points used in an attempt to predict a currency pairs movement. Forex indicators come in two formats – leading and lagging.

Most Forex indicators are lagging as these will be based on algorithms taken from historical prices over a defined period. These are still important as the Forex market tends to repeat itself – often stalling and retracing around the same price points. Leading indicators such as the CCI will oscillate between two horizontals with the extreme points being the most important for a trader to watch for.