The forex market is extremely volatile and leveraged and therefore it might be dangerous if the cost moves against your position. It is therefore important to use key performance indicators that will help you maximize your profits. One of the performance indicators is the time of day. Many people end up not being successful in this business because they trading at the wrong time of the day. Those who are successful are reported to be trading during the late US and Asian or early European trading sessions.
Another performance indicator is range trading. To make profit in this business, you are required to buy low and sell high. In the event that a currency has fallen and it is trading at significant support levels, it will be the best time to buy it. In the event that the same currency trades higher, you can sell it. You however need to watch out for worst market conditions whereby the currency continues to trade within ranges that are relatively low.
The currency pair is another important factor to keep in mind. Not all currencies act the same in this market, so you will need to know which pairs are going to be more profitable to you. You will also need to know which time of the day a certain currency pair tends to perform well, for instance, the Japanese Yen is usually more volatile during Asian hours compared to the British Pound or Euro since these are business hours in in this country.
Another key performance indicator that most forex traders use is called the Stochastic. This is a forex market timing tool that helps you analyze the performance of the market, specifically the highs and lows. When the signal is more powerful, you can go ahead and make the trades but when it is not, you will need to wait.
Another key performance indicator that is popularly used is the relative strength currency trading indicator index. It helps you to know the strength of the trend so that you can have advance warning of any contrary move. You will be able to know when the trend is still up or when it down so that to know whether to place the trade or not.
The Bollinger brand is another key performance indicator to keep in mind. It allows you to know the volatility of the price as well as the best time to place a trade. You simply need to understand it in order to make more profit in the forex market. It also helps you to know the areas that are in line with support as well as resistance to trade in to.
Moving averages are also very important when it comes to knowing the performance of the forex market. They help you know the best time to sell back into the existing trends or load in new trades. During strong trending moves in the forex market, it is important to trail your stops behind the support or resistance levels if you want to stay long in the long term trend.