One of the key things to being a success in Forex trading is the ability to learn how to apply the different Forex trading indicators that are there at your fingertips. Even though this kind of trading is mostly speculative it still doesn't hurt to try and apply the different indicators that are available and sometimes these indicators actually can enhance your ability to make some good returns on your money.
You need to make sure that you are familiar with the two different kinds of indicators that are available for Forex trading. You have leading indicators and you have lagging indicators. The leading ones will indicate a buy single that is triggered before a new trend or a reversal happens. The lagging indicator is one that will give a signal after a trend has happened or changed.
You will also need to come up with some sort of trading plan. This is essential because it will enable you to stay consistent when you are trading. Having a plan will help to stop you from making some not so good decisions and this is easily done when there are so many emotions flying around when it comes to Forex trading. A good plan will take into consideration the kind of market you will trade in.
You should make sure to do your research on which indicator seems to work best in each market. This is probably best done by using a demo account that many Forex trading sites offer. Even though on the surface a leading indicator seems to be the best bet since they lean towards the trend change before it happens, they can really be inaccurate if a market has a lot of fluctuations. So if a market has a lot of fluctuations then the lagging indicator is going to be better.
Another good thing to do is to go ahead and try out combining the indicators. By doing this you will then be getting a variety of different results. When you do this you can come up with consistent results that are based on prevailing trends in the market.
It's probably a good idea to use the demo account often to get plenty of practice using the different indicators and see how they work alone, in conjunction with one another as well as against each other. It is best that you know how to use these extremely well before you go off completely on your own and try using them to make your trading decisions.
Note: If you are working in a sideways market, which is a market that seems to have no pattern or trend, you should probably not use a leading indicator in this kind of of a market. And never use a lagging indicator in a trending market.