Every savvy trader knows the forex market is volatile and ever-changing. These changes are due to several unprecedented factors, such as unstable currency exchange rates. As such, getting ahead of the market and other traders through game-changing tools, indicators, and plugins is pertinent. Keep reading to learn more about some vital tools you must know as a forex trader.
Price spike and crash indicator
This tool is available as a plugin on MetaTrader 4 and 5. It’s a reliable and fast indicator of price crashes and spikes in the market. The plugin is made up of a complex algorithm that instantly sends potential price changes to your mobile phone. It also brings up a sound alert or pop-up notification whenever a sudden price change occurs.
Economic calendar
An economic calendar is a tool that assists traders in staying abreast of all important economic events in a given week. The tool typically contains the date and time of the brief to know which details are outdated. Additionally, it shows the report type and the currency affected by the report.
The tool shows the anticipated volatility, analyst consensus, and value of previous releases. The information provided by the calendar helps traders know which reports have great effects on currency pairs. Besides, it helps to plan appropriately against periods of elevated market volatility. If you work with the calendar judiciously, you’ll also be able to create ideas that’ll affect your trade positively.
Currency Conversion Calculator
Every trader must also be equipped with a currency conversion tool. This is particularly true as many traders work with currencies different from their local legal tender. Hence, before you put more money into any trade or withdraw your profit, you can use a conversion tool to see how much two currencies are worth. This tool is paramount for forex traders and everyone involved in all foreign exchange or investment.
Pip Calculator
Since currency increments when trading is usually small and slow, they’re often quoted as a percentage in points, or PIP. It’s pertinent for every trader to know their PIP value, which depends on the value of the base and counter currencies. Knowing your pip value will help you manage trade risks effectively. Thankfully, specific calculators can help you with this value without hassle.
Trend Screener
A trend screener helps traders monitor all market trends with a single chart. This tool gives a birds-eye view of all major events like currency strength, profit analysis, and trend reversals. It’s also a valuable tool for crypto traders and ensures investors can quickly link to the complex foreign exchange world.
A final word
Trading is complex even for experts. However, trading tools can help reduce the complexity. These tools only serve as indicators, and when used properly, they can make a huge difference in your overall profit margin. In addition to these tools, it’s pertinent for every trader to stay abreast of critical financial tips. You can visit Finansya.com for these guidelines and trading tools.
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