Combining indicators with one another can help you to find other perspectives on price movements. This design can also create indicator "complement each other". This kind of thing commonly referred to as "trading systems". For example, a moving average which is basically equipped with trend indicator stochastic oscillator lines to determine the timing of buy or sell.
In this chapter, you will see examples of the use of indicators that are used in conjunction with other indicators. We will not discuss too much, we will discuss only the simple and popular system only, as the basis for building trading systems.
Usually, traders combine two or three different indicators in their trading system. The decision to buy or sell is taken when the three indicators have been "confirmed" the same signal.
Well, without the need of-width, we begin our adventure.
1. the utilization pattern
This is a very simple system. You only need to recognize patterns that appear to predict further price movement. Of course, to be able to recognize the emergence of a pattern, you must reproduce the exercise so that your observations more observant.
2. Fibonacci retracement + price/candlestick pattern
This technique can be said quite simply. All you need is the trend line and a little help from Fibonacci retracement and a little help from the candlestick and/or price pattern.
This system is based on trends. Therefore, it is of course a good understanding of the trend itself is absolutely necessary. This system also uses a strategy that leverages trading bounce reference Fibonacci retracement level.
First you should do is determine the trend. The next step, pull Fibonaci retracement based on last swing you can see in the chart. Then, note the reference the Fibonacci retracement area, i.e., 38.2%, 50% and 61.8%.
Next, look for the bounce (bounce) from the area of reference Fibonacci had said.Confirm that you can use is the candlestick patterns or pattern.
So you have to wait for a short-term pullback to areas of reference of Fibonacciand seek whether there was confirmation of a bullish/bearish pattern.Pattern/pattern can be candlestick (morning/evening star, engulfing, etc.) or aprice pattern like a double top, double bottom, and others.
3. Fibonacci retracement stochastic oscillator + CCI +
Still with Fibonacci retracement, but this time we are going to combine that withstochastic and CCI. Its use is also quite easy. We wait until a short-term pullbackoccurs to the underlying area and signal the waiting Fibonacci buy/sell ofstochastic and CCI. Signals should emerge from these two indicators are to obtaina strong signal confirmation.
OK. Trading systems described above are just a few examples that you can use.You can experiment to integrate some indicators to be trading systems that fityour trading style.
0 komentar