I think that you don t really need a combination of indicators to trade the forex market instead let me introduce you to my own trading indicator which i have developed to help traders maximize their returns by taking just high probability setup. Some of the best technical indicators to complement using the relative strength index rsi are other momentum indicators such as the moving average convergence divergence macd and moving averages. Lets discuss about these 2 indicators.
Like using rsi leading indicator with macd lagging indicator can be an ideal combination for trading in technical analysis 2. One should always a leading and lagging indicator 1 together. At most use only one from each category of indicator to avoid unnecessary and distracting repetition.
Regardless of whether you re day trading stocks forex or futures it s often best to keep it simple when it comes to technical indicators you may find you prefer looking at only a pair of indicators to suggest entry points and exit points. Everything else is a matter of own preferences and education on forex trading you re going to get. Then at your choice opt for macd adx or bollinger bands.
Add 200 ema 20 sma definitely add stochastic indicator. Start with moving averages. What are the best indicators to use.
However by combining different indicators to different timeframes a trader can take advantage of their strengths and reduce fake signals to a minimum. Finding the best combination of forex indicators for day trading can be quite hard a trend indicator says buy when an oscillator says sell and vice versa. Furthermore all of the indicators led to substantial drawdowns of between 20 to 30.
Surprisingly the rest of the technical indicators were a lot less profitable with the stochastic indicator showing a return of negative 20 72. Over 5 years that gives us an average of just over 6 per year. It generated a total profit of 30 341 or 30 35.
Now let s take a look at six winning in our opinion combinations of forex indicators in order to wrap up this subject.
Best forex technical indicator combination. However if you follow our best combination of technical indicators you can improve your chances of winning more often than losing trading the market. You have to keep in mind that all indicators are based on the past price so only a multi indicator strategy can help you predict the future. Identifying the best indicator combinations in forex can help your trading strategy immediately improve. Technical indicators help traders analyze currencies stocks and other tradeable assets.
With the right combination of technical indicators you can predict whether a speculative asset is likely to increase in value. You learned about the technical indicators and saw examples of how they work individually. But as we mentioned in the previous lessons in this course the best way to build a forex strategy is to combine indicators.
But as we mentioned in the previous lessons in this course the best way to build a forex strategy is to combine indicators. You learned about the technical indicators and saw examples of how they work individually. With the right combination of technical indicators you can predict whether a speculative asset is likely to increase in value.
Technical indicators help traders analyze currencies stocks and other tradeable assets. Identifying the best indicator combinations in forex can help your trading strategy immediately improve. You have to keep in mind that all indicators are based on the past price so only a multi indicator strategy can help you predict the future.
However if you follow our best combination of technical indicators you can improve your chances of winning more often than losing trading the market.
