If you want to make money trading Forex, then you need to follow the trend of foreign exchange, here we will look at the best foreign exchange trading indicators to eliminate them, once the trend of movement into the trend of the best risk return.
A simple moving average is the best indicator, and working with trend lines will help you discover and maintain trends and pick valuable areas.
Here, we will look at these advantages and the best use time period
Mobile rates have a single goal:
They identify price trends for specific periods and smooth daily price fluctuations caused by short-term fluctuations.
The equation for the move is simple:
The closing price is added up divided by the period of the moving average.
This means that the moving average will lag behind the actual market price.
The reason for its work is that human-driven prices are much higher or lower than the moving average, but prices will return to the average level after a surge in sentiment.
You should only use mobile rates for long-term trends - they are useless in day trading, foreign exchange stripping or swing trading.
The best time period is of course subjective judgment - but we like 40 days and 20 days.
We have a stop-loss point behind the 40-day moving average to protect us against long-term trends, and to buy back dips to the 20-day moving average to enter the current trend and have the largest The return risk..
important point!
Moving interest rates is a lagging indicator that cannot be used to enter where they are just defining trends and giving value areas, and is very suitable for this - does not apply to entering trading positions.
Many traders only see a moving average and buy - but this is prediction and guessing, and you will not be rewarded for this.
You must use some leading indicators based on price power to calculate your trading signals and ensure that the likelihood of price increases is far from the average.
Good indicators of power are Relative Strength Index (RSI) and Stochastic - they were discussed in other articles, so check them out.
Many traders ignore simple moving interest rates and they make a mistake because mobile rates work and will always work because all temporary prices rise short-lived.
Moving interest rates can help you capture these falling and segregate value areas, combine them with some momentum indicators, and you have a strong combination to seek forex trading profits.
Trying to move interest rates, you will find that they are the best foreign exchange trading indicators to improve trends - simple? Yes, but very effective and profitable.
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Orignal From: Define the best foreign exchange trading index for foreign exchange price trends
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