Forex Trading Style: 7 Essential Indicators You Need
When
developing your own forex trading style, there is a danger in becoming
fascinated with indicators.
The
newer trader experiments with one, finds it doesn’t work
so well, then switches to another, then another, etc.
The
list below highlights 7 key indicators that can be woven into your
forex trading style. You may not need to go any further than this.
Stick with the 7, practice them, get to know them inside out, and
get the satisfaction of developing your own successful forex trading
style.
Indicator
1
Candlesticks –watch for a hammer, doji, head and shoulders
pattern, 1-2-3 formation, double top or bottom.
Indicator
2
Trendlines –draw common sense trendlines across the highs
in a downtrend or lows in an uptrend. Watch for price to break the
trendline and come back and test it.
|
|
Untitled Document
Amazing!
Forex Killer Software
from Andreas Kirchberger - Professional
Trader
Click
Here |
|
Indicator
3
MACD –Watch for a difference between the highs and lows
of MACD and price. When there is divergence watch closely for a good
entry point once price has shifted in the direction of the divergence.
Indicator
4
200 EMA –this indicator is an all time favorite for traders
across the board. On higher time frames (1 hour, 4 hour, daily) take
note whether price is above or below the 200 EMA to give you the
sense of price direction.
Indicator
5
Pivot points –take note of previous support and resistance
lines as price will come back to retest these levels time and time
again.
Indicator
6
Fibonacci –learn how to use this tool well and take particular
note of the 50 and 62 retracement levels, especially when they coincide
with trendlines or previous support/resistance.
Indicator
7
Price itself –let price prove to you where it wants to
go by setting entry orders rather than market orders when entering
a trade. By setting an entry order, price has to reach the target
you specify before pulling you into the trade.
Related
Articles:
Develop Your Forex
Strategy: Every Candle Tells A Story
Forex
Day Trading: Top 7 Checklist When Using Support And Resistance
Pivot
Point Trading: 7 Guidelines For Success
This article
may be used under the following Terms & Conditions:
It must be taken from ezinearticles.com using this link:
Forex Trading Style: 7 Essential Indicators You Need
The article may not be altered in any way and must include the
Resource Box
as
it appears in the article directory above |
