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There is an exorbitant amount of graphic indicators to evaluate the behavior of the Forex market which many of the investors and traders use them to evaluate and predict the value of an asset as part of their decision-making process.
However, not all decisions end up being successful, the Forex market lives in constant change and transformation, and many indicators end up inducing traders to make a mistake.
Thus, there are different types of technical indicators with different results in practice. In this occasion, we will show you the repainting indicators and the non-repainting indicators, their differences and which of them has a better chance of helping you to guess in a prediction.
What is a repainting indicator?
A repainting indicator is a technical indicator used in Forex trading that constantly repaints its values, that is, it keeps changing the signals in real time.
These indicators use future data to generate values and signals, in this way they ensure that the historical results are highly accurate.
What is a non- repainting indicator?
Unlike the repainting indicators, and as the name indicates, these technical indicators do not repaint their values once the price bar is closed.
Normally they use this bar to determine the values and never change once it closes. Once a new candle has been opened, the past values of the indicator will remain fixed until the next opening.
What is the best indicator?
There is a lot of controversy as to which indicator gives the best results. Most traders agree that despite remaining behind with the current price action, non-repainted indicators are more reliable and less problematic than their counterparts.
It is common that non-repainting indicators are valued more than repainting indicators because they do not change the information and signals once they have been formed. Because of this, a non-repainting indicator is usually less risky than a repainting indicator, although, naturally not as accurate or impressive in terms of its historical results.
This does not mean that the repainting indicators are completely useless and totally inefficient; many of them can be extremely useful, but only in the right hands and with the right knowledge.
Risks of a repainting indicator
The repainting indicators must be used with great caution, there is great controversy regarding them because the repainting makes the indicators look attractive with respect to a historical chart, but not so much in the case of real-time application and live trading.
In addition, they are often targeted by many scammers. They sell them as indicators that offer incomparable results, without taking into account the risks and problems involved.
A lot of investors in the Forex market think that the repainting of a graph rarely ends up showing an accurate interpretation of the current situation, therefore they need a thorough evaluation to determine the real value of what the indicator shows.
