Identifying the best indicator combinations in Forex are not only simple and effective but they also serve various purposes. You as the reader are highly encouraged to add your opinion in the chat down below. There are certainly existing combinations which I have not mentioned. Please take a minute to let us and other traders know what your favorite mixture is.
In the first place, this post is only considering tools and indicators and NOT price action. Price action reading and candlestick patterns always have a universal importance, no matter what strategy or analysis is done. The below-mentioned indicator combinations are only considering indicators and tools, and price action and candlestick can always be added.
Second, of all, the post is only considering the best combinations of two 2 indicators or tools and nothing more. The chart is best served by keeping it simple, and it is important to avoid the paralysis of analysis via overcrowded charts.
The strike tool also clearly shows where the entries are located via a painted candle on the chart. Together, they help simplify the entry and exit plan with clear and concise rules and leave zero room for doubt.
You can learn more about this method here: Fibonacci tools are the best when a market is trending and NOT ranging and that is why trend lines are important. Trend channels help with identifying the trend, which help traders avoid using Fibs at the wrong times in choppy markets. Trend lines are also instrumental when identifying patterns, like flags and triangles.
The distance between the histogram bars and the zero line also indicate the strength of lack of momentum. The fractals indicate simple and quick visualization of support and resistance and can help indicate the breaking point for entry when trading with the trend and momentum of the awesome oscillator. A trend line is a discretionary tool which is added to the chart by the trader themselves, like the Fibonacci as well.
As a last note, the moving averages can be indirectly used for consolidation recognition when the indicator is angled flat lack of trend. By using the moving averages in combination with the Parabolic, traders are able to enter when a price has completed a consolidation and it is breaking for further trend continuation.
The largest risk is a false breakout or reversal. Both dangers can be somewhat limited when using candlesticks and divergence. A lack of divergence means that a trend has sufficient speed to maintain itself and trend lines can be used to take trends with the trend.
A chart where divergence is present means that trend trades are on hold and potential reversal trade setups are in the picture. Of course, the more divergence on a one-time frame and the more divergence on other time frames increase the likelihood of a reversal setup indeed materializing profitably. Also, be sure you are using the most accurate forex indicator. I am in new please help me about that.
I usually use parapolic. Thank you for your post! Identifying the best indicator combinations In the first place, this post is only considering tools and indicators and NOT price action. The value of any indicator or tool diminishes when they are used for the same goal. No matter what any trader says, the most important are that the indicators and tools make sense to you. Indicator Combinations in Forex The following are what I consider the best forex indicators.
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