LandOfCash Forex expert advisors, Trailing EA, Indicators.

Forex Trading Expert Advisors (EA or automated trading system) and Custom Indicators (CI) for MetaTrader Platform.

LOCTrailing With Partial Close Expert Advisor protect your orders profit. Trail stop level for manual and automatic orders with different algorithms, move stop loss into breakeven. Order now for only $129.95

LOCInfo Custom Indicator follow the simple rules and make the right decision when to buy or sell. View Moving Average, Stochastic indicators from multiple time frames in one place. Download now for FREE!


Welcome Guest! To enable all features please Login or Register.

Notification

Icon
Error

Options
Go to last post Go to first unread
painofhell  
#1 Posted : Thursday, October 12, 2017 12:31:42 PM(UTC)
painofhell


Rank: Advanced Member

Groups: Registered
Joined: 9/25/2016(UTC)
Posts: 770

It’s a great question since many traders, especially newer traders, literally become fixated on the indicator at the expense of everything else. When the indicator gives a buy signal they buy and when it gives a sell signal they sell…regardless of what is happening on the price chart.

Always remember that price action, the direction that the pair is moving, is our primary indicator…Indicator #1.

So, first and foremost, we need to determine the trend on the pair, the direction that the market is moving the pair.

Take a look at the Daily chart of the CADCHF below…
UserPostedImage

We can see that the pair is in a downtrend on the chart so we know that we ONLY want to find reasons to sell the pair. Knowing that and using the Slow Stochastics indicator on the chart, we will only take selling signals and ignore the signals which tell us to buy the pair. Each of the signals in the black circles would be the selling signals and a short position could have been taken successfully on each one.

The buy signals in the red boxes are to be ignored in a downtrend.

Keep in mind that a trader can still have a losing trade even when taking a higher probability entry. However, your likelihood of having a successful trade will be enhanced (not guaranteed) by entering trades in the direction of the trend.

Remember, the indicator has no concept of trend, it only reflects momentum. As traders, it is up to us to determine the trend and then use our indicator of choice to only take trades in that direction.
Open Account: Real / Demo
www.instaforex.com
Necy Merritt  
#2 Posted : Thursday, October 19, 2017 8:09:49 AM(UTC)
Necy Merritt


Rank: Newbie

Groups: Registered
Joined: 7/10/2017(UTC)
Posts: 8

Trading is my profession and I can’t take any risk in this. Choosing a good broker where my capital will be safe is my first priority. I have been scammed by many brokers earlier who blocked me withdraw but now I think my bad days are over. AvaTrade broker should be avoided. They got kicked out of the US due to several reasons. I have faced execution problem with them.
Rss Feed  Atom Feed
Users browsing this topic
Guest
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.