selection

Tips To Selecting Forex Indicators For Your Strategy

If you are new to trading, you must be overwhelmed by the number of forex indicators available on your platform. Worst of all, you do not know which are the ones you should use for your trading as it will be impossible for you to use them all. Therefore I decided to write this post […]

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    If you are new to trading, you must be overwhelmed by the number of forex indicators available on your platform. Worst of all, you do not know which are the ones you should use for your trading as it will be impossible for you to use them all.

    Therefore I decided to write this post to share with you some tips in selecting forex indicators to use for your trading.

    Understand The Nature of The Indicator

    First of all, you will never be able to pick the right indicator to use if you do not know the nature of the indicator.

    Some of the indicators are leading in nature while some are lagging in nature. Leading indicators are those that are able to give you an advance notice of the market movement like the Fibonacci extension and MACD Divergence.

    Lagging indicators are those that gives you a visual indication based on historical data like the moving averages. Each leading and lagging indicator itself has its own usage and therefore you must really spend sometime to understand it.

    That is why I decided to set up a forex indicators category on this blog to share with you the various features of each individual indicator. So I will suggest you to spend some time to go through them and then decide on which one to use on your strategy.

    Less is More

    When selecting the indicators to use, most new traders tend to think that the more they have on their chart, the better their strategy is. This is completely wrong as less is more effective in trading.

    For all my forex strategies, I will never use more than 3 indicators in a strategy as it will be very difficult to trade and it will have very little trades every month.

    Therefore I will suggest you to choose between 2 to 3 different indicators to use on your strategy.

    Learn Those Proven Strategy

    If you find it very hard to select indicators, I will suggest you to learn strategies that are already proven to work by real traders by taking up their courses.

    In those courses, they will already have chosen the right indicators to use as well as how to use them. All you need is to follow their teaching and then you will have a working strategy on hand.

    I hope that you find this post useful for you. If you have any question or you have anything to share with us, do feel free to give me your comment below.

    If you are interested to find out how I modified the Stochastic and MACD indicator for better trading results, you can find out from the link below.

    Click Here To Find Out More

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