Forex
Learning: In a previous matter has been discussed the basics of
technical analysis such as support / resistance and trendline. In the previous lesson you have studied a variety of technical indicators. You also have to learn the types of candlestick patterns and price pattern. Now we are going to continue the adventure with the various tools of the technical analysis.
Blending indicator to one another can help you to find a different perspective on price movement. Can also make the integration of indicators of "complementarity". Things like this commonly referred to as "trading system". For example, the moving average is basically equipped with a stochastic trend indicator which is an oscillator to determine the timing of buy or sell.
In this chapter, you will see examples of the use of indicators that are used together with other indicators. We will not go too much, we will discuss only the simple and popular system, as a basis for building a trading system.
Typically, traders combine two or three different indicators in their trading systems. The decision to buy or sell is taken when these three indicators have been "confirmed" the same signal.
Well, without further ado-wide, we begin our adventure.
1. Utilization pattern
This is a very simple system. You just need to recognize a pattern that appears to predict further price movement. Of course, to be able to recognize the emergence of a pattern, you must multiply the training to be more observant of your observations.
2. Fibonacci retracement + candlestick / price pattern
This technique can be quite simple. All you need is a little support trend line and Fibonacci retracement and a little help from the candlestick and / or price pattern.
The system is based on the trend. Therefore, of course, a good understanding of the trend itself is absolutely necessary. The system also uses bounce trading strategy that utilizes the reference Fibonacci retracement level.
The first thing to do is determine the trend. The next step, pull Fibonaci retracement is based on the last swing that you see on the chart. Then, note the Fibonacci retracement area of reference, namely 38.2%, 50% and 61.8%.
Blending indicator to one another can help you to find a different perspective on price movement. Can also make the integration of indicators of "complementarity". Things like this commonly referred to as "trading system". For example, the moving average is basically equipped with a stochastic trend indicator which is an oscillator to determine the timing of buy or sell.
In this chapter, you will see examples of the use of indicators that are used together with other indicators. We will not go too much, we will discuss only the simple and popular system, as a basis for building a trading system.
Typically, traders combine two or three different indicators in their trading systems. The decision to buy or sell is taken when these three indicators have been "confirmed" the same signal.
Well, without further ado-wide, we begin our adventure.
1. Utilization pattern
This is a very simple system. You just need to recognize a pattern that appears to predict further price movement. Of course, to be able to recognize the emergence of a pattern, you must multiply the training to be more observant of your observations.
2. Fibonacci retracement + candlestick / price pattern
This technique can be quite simple. All you need is a little support trend line and Fibonacci retracement and a little help from the candlestick and / or price pattern.
The system is based on the trend. Therefore, of course, a good understanding of the trend itself is absolutely necessary. The system also uses bounce trading strategy that utilizes the reference Fibonacci retracement level.
The first thing to do is determine the trend. The next step, pull Fibonaci retracement is based on the last swing that you see on the chart. Then, note the Fibonacci retracement area of reference, namely 38.2%, 50% and 61.8%.
Next, search bounce (reflection) of the Fibonacci reference area earlier. Confirm that you can use is a candlestick pattern or pattern.
So, you have to wait for a pullback to Fibonacci reference area and find out if there is confirmation pattern bullish / bearish. Pattern / could candlestick pattern (morning / evening star, engulfing, etc.) or price pattern like a double top, double bottom, and others.
3. Fibonacci retracement + stochastic oscillator + CCI
Still with Fibonacci retracement, but this time we will combine it with stochastic and CCI. Its use is also quite easy. We waited until the pullback occurs to the Fibonacci reference area, and then wait for a signal to buy / sell from stochastic and CCI. The signal must come from the two indicators to obtain confirmation of a strong signal.
OK. Trading systems described above are just some examples that you can use. You can experiment to combine several indicators to be a trading system that fits your trading style.
So, you have to wait for a pullback to Fibonacci reference area and find out if there is confirmation pattern bullish / bearish. Pattern / could candlestick pattern (morning / evening star, engulfing, etc.) or price pattern like a double top, double bottom, and others.
3. Fibonacci retracement + stochastic oscillator + CCI
Still with Fibonacci retracement, but this time we will combine it with stochastic and CCI. Its use is also quite easy. We waited until the pullback occurs to the Fibonacci reference area, and then wait for a signal to buy / sell from stochastic and CCI. The signal must come from the two indicators to obtain confirmation of a strong signal.
OK. Trading systems described above are just some examples that you can use. You can experiment to combine several indicators to be a trading system that fits your trading style.
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