There are a large number of indicators of several types, depending on what tasks they are designed to solve.
Forex trend indicators help to analyze market price movements over a selected time frame. They define the main direction of the trend.
Reversal indicators analyze price movement and indicate points of possible price reversals. It is possible to open buy or sell orders at the highs and lows of price patterns.
Channel and level indicators quickly identify support and resistance lines. The trader can navigate in the price range and can open orders near the price range boundaries.
How to choose the best Forex indicator
The best Forex indicator is one that is helpful to your trading style and psychology. This means that there is no universal Forex indicator that would appeal to all traders.
Indicators work differently in different market sentiments. For example, there are Forex trend indicators that show overbought and oversold areas and also help predict price bounces. But this kind of indicator works well only in trending markets, while oscillator indicators work better during price movement in a range.
It may seem like there is no surefire way to know which market you are in right now until it is too late to accumulate large profits. This makes it difficult to choose which indicator can be used now to open an order with a higher profit. You must understand that no indicator always gives correct results because the market is always changing. As market trends change, you must change the parameters of the indicators.