The challenge is to combine indicators in a smart way. This means that indicators should deliver different type of information about the market and confirm each other rather than duplicate signals. Forex traders call it “signal confirmation”, it is in reality could be the same type of data, and should secret of forex called “duplication”, rather than “confirmation”.
To control the situation traders need to choose only useful primary tools in order to avoid information overflow. Especially if you are a novice trader, we’d like to suggest you two most popular and widely used indicators to start planning your trades with. The third place goes to MACD. However, it’s not a secret that to many traders Elliott waves theory is one the most difficult studies whether it comes to understanding, using it or following someone’s forecast. Choose “Save as” or “Save link as” to download the indicator.
MACD historam staying above zero line — market is bullish, below — bearish. MACD histogram flipping over zero line — confirmation of a strength of a current trend. MACD histogram diverges from price on the chart — signal of an upcoming reversal. Forex brokers guide – brokers comparison and more! Forex Bonus – latest 2015 bonus offers! Any veteran trader will tell you that, and if you’ve been trading for a while, you know it to be true.
It’s inevitable for systems based solely on Technical Analysis to fail because they are trying to provide a perfect solution for an imperfect market, not mentioning that most technical systems are just dead wrong! Enter your name and email address to the form on the right to download this Free Fundamental Analysis Strategy Report immediately. Your email address will never be rented, traded or sold. We are professional money managers ourselves, and before we found Henry, were almost exclusively technical traders. As a longtime securities trader I have seen just about every system that promises to deliver results. Most of them fall very short on what is promised. Henry Liu’s service is definitely not one of those.