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Best Forex Trading Indicators – Forex Indicators Every Trader Should Know
If you want a Forex trading strategy for success, then you will need some Forex Indicators, to help you achieve better marketing timing with your trading signals…
Here we are going to look at the best Forex trading Indicators; you can combine for bigger Forex Profits.
There is no one indicator that works all of the time, you need to combine a few that compliment each other. here we show which ones to use and how to combine them.
The Best Forex indicators below, are all easy to learn as there visual, you don’t need to know the calculation behind them, just the set up to look for.
Bollinger Bands
Measure the volatility of price. The indicator consists of three bands the middle band is a simple moving average and there is a band either side which show how volatile the market is – so what use is that?
When volatility is high and prices are at the outer bands, you will probably get a retracement back to the average (the mid band) so you can look to take contrary trades against on high volatility. Also the mid band acts as value in strong trends, so you can buy and sell back to it; this simple strategy is very effective.
Bollinger bands give you trading set ups – but you should not execute your trading signals without confirming them with some momentum indicators.
The Stochastic
This is a great momentum indicator for market timing and one every trader should know. It can be used to show if momentum is weak, strong, or a market is overbought or oversold.
A simple strategy is to trade crossovers of the two stochastic lines and these can be for contrary trades or trend following. It’s a very simple Forex trading indicator to use and very effective.
Relative Strength Index RSI
Developed by trading legend Wells Wilder, this indicator gives you an indication of how strong a trend is which you can see at glance.
If the RSI Supports your perception of the trend, you stay with it, when the RSI diverges from the trend you have a potential trading opportunity, to trade the other way, or lock in some profits.
Average Directional Movement ADX
Another great Wells Wilder trading indicator. The ADX gives an indication if the market is in a trend or consolidating. The ADX line will also help you stay with all the best trends and also acts as a great profit taking indicator:
As soon as the ADX line rises above 40 and turns down you have a profit taking signal, this has made me and saved me tens of thousands of dollars over my trading career!
Moving Averages
Simple moving averages have gone out of fashion but there one of the most effective indicators you can use – Why?
Because all short term price spikes are temporary and come back to averages or value, one of the most effective averages for this is the 20 day MA. In long term trends, trailing a stop behind the 40 day MA is very effective.
Combine them for Big Profits
I have used the above best Forex trading indicators for over 20 years and made a lot of money with them.
I simply use the Bollinger Band and support and resistance to isolate potential opportunities and use the RSI and stochastic to confirm the moves. The ADX helps me without determining the trend and acts as a profit taking signal and moving averages help me with stops and targets.
Learn these best Forex trading indicators and they could help you make bigger profits too!
mr.hint@yahoo.com
Selasa, 31 Ogos 2010
Khamis, 25 Mac 2010
Rujukan Hebat - Tapi Tak semestinya tepat..ok oklah...
http://www.fx360.com/techAnalysis/3053/pm-analysis.aspx
Site ini beri signal PERCUMA dan Recomended Trades untuk kita guna pakai jika nak
Hebat jugak, tapi signal selalu jugak tak tepat. Kita perlu buat analisis and search sendiri.
Site ini beri signal PERCUMA dan Recomended Trades untuk kita guna pakai jika nak
Hebat jugak, tapi signal selalu jugak tak tepat. Kita perlu buat analisis and search sendiri.
Tentang Swing Highs and Lows dr Mr Strat FF
Dave, many people get swings wrong because they are not using CONFIRMED swings. Unless a swing is CONFIRMED it is not valid and is about as much use as a crack in a glass eye!
To answer your questions:
“”I see three possibilities for confirmation here;
1) Marked candle has a higher high and has closed lower than the previous bullish bar or,
2) Price breaks below the marked bar's low or,
3) Price breaks below the last bullish bar's low since the swing high””.
Unless my eyesight is failing me, Dave, your 1) statement is incorrect because (i) it is neither lower or (ii) closed lower than the prior bar.
At the end of that week that your marked candle closed, it was an UNCONFIRMED swing high.
For confirmation of a swing, the OPPOSITE end of the candle must be taken out (exceeded). So, for a CONFIRMED swing high, the highest candle must have its LOW taken out and Vicky Verka for a CONFIRMED swing low.
Therefore, your marked candle is CONFIRMED as a swing high the following week when it’s LOW is taken out.
See also attached examples
“”Should you wait until the swing high is confirmed on the weekly chart before you look for a shooting star or other entry candle on the daily chart?””
Remember that although the higher time frames determine the direction of the lower time frames, they lag at turning points. This is because the lower time frames are faster and therefore respond faster.
If you do what you suggest above then you are trading the BOSS chart and not the Worker.
When you see a classic shooting star at resistance as you show in your EURAUD Worker chart with a bearish BOSS then, providing everything else is equal and you are not trading into an immediate area of strong support, you would place a sell order below the low of the Worker shooting star.
“”Would this SS be considered a bond candle because there had not been confirmation yet, therefore would have been a low probability trade? Or would this have appeared to be a likely winner at the time because it appeared near a resistance area and worth trying to get in before confirmation by the weekly?””
Maybe you need to read again what happened to my mate Bond – he thought he had pulled a gorgeous chick but when he got down to the nitty gritty, he found the meat and two veg – in other words, a “she male”. So, a Bond candle is something it is not and is trying to “fool” you.
It can be a correctly proportioned candle but nowhere near S&R or, it can be an incorrectly proportioned candle at S&R or any combination of both.
In your example, the shooting star is correctly proportioned, the open of the candle was at resistance, the close was not only below the prior candle but also within the body of the candle before that. The wick of the shooting star is also rejected by resistance. As if that wasn’t enough, the shooting star was also a BEOB! This was a trade to die for!
Don’t get confused with how to use the BOSS to trade the Worker. The BOSS gives us our direction and sentiment – the Worker gives us our timing. When you see the BOSS signaling an opportunity, start looking at the Worker for PASR to trade in the direction of the BOSS.
Also, don’t waste your time looking at Worker pairs when their BOSS is not signaling an opportunity – this is a sure way to losing trades.
If you are still confused, ask more questions – we’ll get you there!
To answer your questions:
“”I see three possibilities for confirmation here;
1) Marked candle has a higher high and has closed lower than the previous bullish bar or,
2) Price breaks below the marked bar's low or,
3) Price breaks below the last bullish bar's low since the swing high””.
Unless my eyesight is failing me, Dave, your 1) statement is incorrect because (i) it is neither lower or (ii) closed lower than the prior bar.
At the end of that week that your marked candle closed, it was an UNCONFIRMED swing high.
For confirmation of a swing, the OPPOSITE end of the candle must be taken out (exceeded). So, for a CONFIRMED swing high, the highest candle must have its LOW taken out and Vicky Verka for a CONFIRMED swing low.
Therefore, your marked candle is CONFIRMED as a swing high the following week when it’s LOW is taken out.
See also attached examples
“”Should you wait until the swing high is confirmed on the weekly chart before you look for a shooting star or other entry candle on the daily chart?””
Remember that although the higher time frames determine the direction of the lower time frames, they lag at turning points. This is because the lower time frames are faster and therefore respond faster.
If you do what you suggest above then you are trading the BOSS chart and not the Worker.
When you see a classic shooting star at resistance as you show in your EURAUD Worker chart with a bearish BOSS then, providing everything else is equal and you are not trading into an immediate area of strong support, you would place a sell order below the low of the Worker shooting star.
“”Would this SS be considered a bond candle because there had not been confirmation yet, therefore would have been a low probability trade? Or would this have appeared to be a likely winner at the time because it appeared near a resistance area and worth trying to get in before confirmation by the weekly?””
Maybe you need to read again what happened to my mate Bond – he thought he had pulled a gorgeous chick but when he got down to the nitty gritty, he found the meat and two veg – in other words, a “she male”. So, a Bond candle is something it is not and is trying to “fool” you.
It can be a correctly proportioned candle but nowhere near S&R or, it can be an incorrectly proportioned candle at S&R or any combination of both.
In your example, the shooting star is correctly proportioned, the open of the candle was at resistance, the close was not only below the prior candle but also within the body of the candle before that. The wick of the shooting star is also rejected by resistance. As if that wasn’t enough, the shooting star was also a BEOB! This was a trade to die for!
Don’t get confused with how to use the BOSS to trade the Worker. The BOSS gives us our direction and sentiment – the Worker gives us our timing. When you see the BOSS signaling an opportunity, start looking at the Worker for PASR to trade in the direction of the BOSS.
Also, don’t waste your time looking at Worker pairs when their BOSS is not signaling an opportunity – this is a sure way to losing trades.
If you are still confused, ask more questions – we’ll get you there!
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