The best indicator for Forex Trading can be your mind

The best indicator for Forex Trading can be your mind

What is the best indicator for trading Forex? Ask that question to the forum Forex and get consensus.
Everyone has their favorite indicator and has a lot to choose from.
Should I use an indicator when the trade? Should I use more than one indicator?
If you use more than one indicator of whether it gave us a greater chance of being right?
Many traders at some point in their trading experience try indicator. Many use more than one, and some develop their own. Is there more than one indicator to help?

John Jagerson who wrote, "Profiting from Forex" and whose Web site educates traders trade a variety of financial markets, says that if you have more than one indicator, the indicator that gives you the best results is the only one to use.

In other words, if you are using the RSI, relative strength index, and your signal from this indicator gives you a 55% trading edge and you are also using another indicator like MACD, which gives you success in 30% of RSI is a better indicator to use. And just because they both agree does not mean that you have a 85% chance of success.

Unfortunately trading does not work that way. If it is not easy to build a trading system that creates a 100% success rates based on several indicators agreeing with each other. Constance Brown in his book, all of Stuttgart, reiterated this point when she says: "My chances of being right does not rise, because only five oscillators all said the same thing." In fact, several indicators can all agree are wrong.

The best forex trading, indicator is an indicator that works best for your trading style. There are several things to consider when you develop your own trading style. Here are just a few:

1st When you can trade the Forex market? The best time to trade when the market has the most liquidity. This is the time the London market opens up to the New York market closes. The most liquidity is when both markets are open. Advantage: Less manipulation of markets and the best spread.

2nd The time frame that you want to trade. Many traders like to see quick results. This leads to trade shorter time frames are usually under an hour. This puts traders in the "price noise 'time frames and makes trading more difficult because the prices seem more random. My suggestion: Trade timeframe of one hour or longer, where the "noise" has less of an effect.

3rd Develop a system that can be formulated in an algorithmic form. This will allow you to test your system and it will give you statistical data that enhances your entry and exit locations. Advantage: It makes your system more empirical. You will have more confidence in your bills because they are based on real data.

4th Understand the fundamentals of the theory of price. You need to learn how the theories behind the price move in the currency markets or for that matter in any financial market. Prices are mostly efficient, which means that all price information is the price so the price is not going to move without any new information. That does not mean you can not find places where there is advantage in the market. This is the core of the idea of ​​successful trading. Advantage: You will better understand why markets move the way they do and make better decisions.

5th Use your own mind. The best indicator of the Forex is your mind. Technical analysis can alert you to situations where trade opportunity may exist. It requires great experience and insight to know when to enter and what size to get position in order to have the best chance to become profitable. This requires thinking and engaged mind. Advantage: You are in control of the final decision on trading.

Going through these steps will help you determine which indicator is best for you. It may take some experimentation, but once you decide, learn everything you can about an indicator that what your saying. Follow these steps and you will see yourself making consistent progress toward becoming a successful FOREX trader.




Previous Post

RSI trend lines
With the RSI trend line Forex traders are able to receive much earlier warning of upcoming trends change from RSI trend line breakout witnessed several candles from the table earlier trend lines.

The traditional use of the RSI indicator
But you bothered in forex trading as you should know by now that no indicator is to be used in isolation, you are also to consider the readings of other indicators, and an indicator that I use that I found to be very effective in combination with MACD and RSI is stochastic oscillator.

Formation gap.
A common scenario is witnessing a prolonged downtrend. A Doji appears, indicating that a sale can be stopped.

Dynamic Doji - Reversal clear trend signal
The trend may be ending. Just this fact alone creates a multitude of investment programs that produce inordinate profits.

Periods in the RSI calculation
Relative Strength Index