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Forex Buy and Sell Indicators To Use

In this post, I am going to share with you several indicators that can be used as buy and sell signals when you are trading. Do note that you do not need to utilise all of these forex indicators in your trading. You just need to choose one or two that you think can fit […]

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    In this post, I am going to share with you several indicators that can be used as buy and sell signals when you are trading. Do note that you do not need to utilise all of these forex indicators in your trading.

    You just need to choose one or two that you think can fit into your forex strategy. In fact, the more indicators that you use in your trading, the harder for you to find an entry for your trading. For me, I will never use more than 3 indicators in any one of my trading strategies.

    Below are some of the buy and sell indicators:

    1) PSAR - This is an indicator that comes with dots that are produced either below or above a candlestick in your chart.

    When you see a dot being formed above the candlestick, it is a sell signal from this indicator.

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    When you see a dot being formed below the candlestick, it is a buy signal from this indicator.

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    2) MACD - The MACD indicator is also known as the Moving Average Convergence Divergence. This indicator comes with a MACD line, a Signal line and a histogram.

    However for those of you who are using the MT4 platform, there is only one line instead of 2 lines.

    When you see the MACD line crossing below the Signal line when they are above the zero line, it is a SELL signal. For those of you who are using the MT4 platform, what you should be looking for as a SELL signal is the line must be above the zero line and the histogram must flip from top to below the zero line.

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    When you see the MACD line crossing above the Signal line when they are below the zero line, it is a BUY signal. Similarly for those of you who are using the MT4 platform, your line must be below the zero line and the histogram must flip from below to top.

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    3) Stochastic – The stochastic indicator is also known as an oscillator. When you see the stochastic lines moving above the 80 mark and starts to curve down, it is a SELL signal.

    When you see the line moving below the 20 mark and starts to curve up, it is a BUY signal.

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    4) Moving Average - As for the moving average, you will need to draw the 20 Exponential Moving Average and the 50 Exponential Moving Average.

    When the 20 EMA crosses below the 50 EMA, it is a SELL signal. When the 20 EMA crosses above the 50 EMA, it is a BUY signal.

    Please do not trade simply from any one of these above BUY and SELL signal. You must have a reliable strategy on hand and then integrate these indicators into your strategy to further improve its winning percentage.

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