two technical indicators can increase your profit if you understand well, let me explain it for you:
bollinger band: it is a fantastic indicator in forex trading world, if you know how to use bollinger band, it is a plus point. Open 1 hour candlestick chart with bollinger band indicator, second best indicator is parabolic sar , use this together. Sell when market reach upper band corner keeping eyes on parabolic dot, if market break it then open 4 hour chart sure the next step will be that upper band, sell anything with confidence and sure you will make some good profit, same strategy when you are going to buy.
Great observation. However, while personally I prefer using few indicators to decide my trades, most of the time they are different combinations. In other words, I have found little success in using the same indicators on multiple trades. Sometime I combine the Bollinger bands with the Parabolic Sar, in others I use Elliot’s Wave and customized moving averages. etc. My point, it is proven that what worked the other day may not work tomorrow so it is important to consider other combinations. Good to hear you are experiencing success though. Happy Trading!
Thanks to share your knowledge and comments, I am making good profit with my strategy and the result is 95% positive. As u know that u need to make your own trading strategies by using various indicators. or for further you can visit my home page.
Bollinger Bands reflect direction with the 20-period SMA and volatility with the upper/lower bands. As such, they can be used to determine if prices are relatively high or low. According to Bollinger, the bands should contain 88-89% of price action, which makes a move outside the bands significant. Technically, prices are relatively high when above the upper band and relatively low when below the lower band. However, relatively high should not be regarded as bearish or as a sell signal. Likewise, relatively low should not be considered bullish or as a buy signal. Prices are high or low for a reason. As with other indicators, Bollinger Bands are not meant to be used as a stand alone tool.
To be frank it is the traders market price knowledge which ensures them the success in the forex market. Thus, having good knowledge regarding the forex market price action is critical for traders success. For me using two moving averages also helps.
Try observing BB with Sar behavior in trending markets and in ranging markets and accordingly you will discover ways to use them differently depending on market behavior. So many diverse tactics and strategies out there as many as the number of people on earth. Whatever works best for you is a reflection of who you are. Enjoy!!
If I remember right from listening to him in the late 80 s I think he said he used to gauge volatility.
I could be wrong though it was many years ago and I used to use it often for stock trading back then, I havent tried it with forex.
Every built in technical indicators of mt4 works but it depends on how we are using it. It will be if you can share some images of your strategy so that we have better understanding about your strategies.
when we add more indicator. we need understand it. some indicator can’t combine with your strategy. you will lose money. the best way is a keep your strategy and adjust it.we will improve our signal. we can maek money with it.
i use the SMA 200 to identify strong trends, and BB with slow schotastic to identify entry points. i use Parabolic sar sometimes but i cant rely on it…it messes me up, its not gonna identify strong reversals, and the whole game is less risky entries, especially if you day trade. my 2 cents are make the trend your friend by identifying strong trending movement and have patience then use BB and very slow schotastic for entry and enjoy the profits. not losing any money is as good as gaining money to me lol
the only thing Ive really found parabolic sar good for is identifying those “pressure release” points on overbought/sold markets where the price will suddenly jump down a couple hundred pips and the reverse in the next bar
ie the major trailing stop break points
real conditions happen in 1 out of every 100 bars, but hey free money is free
It would take you almost no backtesting, almost no reading of trading textbooks, almost no discussion with a successful trader, or almost no real experience to determine that no simple, two-indicator trading-method can possibly produce results that are “95% positive”.
