Best Forex Indicator Combination
The group of indicators outlined here are the best Forex trading indicators in my view and any trader novice or pro should know about them. They are all simple to learn visual indicators which are very effective. . .No indicator is perfect but if you learn how to combine the best and practice, you can build a robust Forex trading strategy for success. Here are your best Forex trading indicators and how you can use them for bigger Forex profits.
The Bollinger Bands
Developed by John Bollinger this indicator has the use of showing the volatility of a currency from the norm. You can soon spot overbought oversold levels, as volatility rises and trade into them. The middle band is a simple moving average and you can buy and sell back to it, in strongly trending markets as this area indicates value and this simple strategy is one any trader should know.The Bollinger band maybe one of the best Forex trading indicators – but you must confirm moves and for this you need some momentum indicators to time your trading signals. Let’s look at some.
Relative Strength Index RSI
Developed by trading legend Wells Wilder this is a great indicator you can use to gauge the strength of a trend. If the RSI is in favor of the trend, you stay with it, when it diverges from the trend, then its time to either bank profits or enter contrary trades. Best Forex Indicator Combination
Average Directional Movement ADX
Another indicator from Wells Wilder and like the RSI the ADX attempts to determine if the market is in a trend or not. The ADX line is a great momentum indicator and will help you trade and stay with the strongest trends. It also acts as a great indicator in terms of warning when a strong trend may change. A great profit taking signal is when the ADX rises above 40 and turns now. When this happens you can bank profits or look for contrary trades.
Developed by George Lane this is probably the best indicator to help you get better market timing and execute trading signals. Stochastic crossovers can confirm any move, within a trend and also be used to take contrary trades. In contrary trades, a stochastic cross with bullish or bearish divergence (from over bought or oversold levels) against the prevailing trend is very effective. Best Forex Indicator Combination
Price spikes don’t last for long and prices will return to a longer term average. In existing trends this tends to be around the 20 day average and in longer term trends, you can trail a stop back behind the 40 day moving average. This is a simple tool and every trader should use them for setting up entry and exit points.
They Work and Will Continue to Work.The above are the only indicators I use and I have been using them for 25 years. There still as effective today as they ever were. These best Forex trading indicators if used correctly can improve profits and decrease risk and that’s what all Forex traders need in their trading. Best Forex Indicator Combination
The Best Strategy for FOREX
1. Temperament and Time Frame A key factor in matching your personality with a trading strategy is the main time frame used by a strategy. If you usually seek activities that provide immediate gratification, a strategy based mostly on a four-hour chart will not work for you–even if you see others making money with it. You will be more comfortable trading a strategy that is built around a lower time frame–15, 5 or 1 minute. These time frames demand your constant attention and participation.
2. Skill Level and Discretion Another factor to consider in strategy shopping is your current skill level. New traders will likely not be successful with highly discretionary strategies.
3. Trade Rooms and Signal Services Another way for beginning traders to find winning strategies is to join a trade room or signal service.
4. Creativity The best trading strategy if you have a creative streak is to “roll your own.” Learn about the fundamental tools of technical analysis and, especially, how price action seems to respond to them. Paper and demo trade your strategy for at least 2 months before taking it live,…… By Darrin Koltow to learn more about Forex please visit www.guideverygood.com
FOREX TRADING- What is the best way to remove money from my account while being taxed the smallest amount?
I am a Canadian individual who wants to know how to withdrawl money from the account while being taxed the least amount possible. Would it be best to leave it as a personal account or turn it into a business or private company account?