Hi,
With so many indicators to understand and learn I’ve started going through a few and put them to a test on my demo account. See which I feel best with and how well I do, then move on to try some others.
At the moment I’m going to stick with MACD at default (12,26,9)
And instead of SMA I’m going to use EMA at 10 and a 20, with a 50 which I’ll use for Res & Support.
With this also some candle stick reading.
Whats your thoughts and feedback?
Thanks
Waz
I often trade PA with just three ema’s (21, 50 & 200) and some S&R that I have drawn onto the chart, I am not much of a fan of indicators. I used to use MACD but got to the point where I realized that I was trading without looking at it and was still consistent, so I dropped it, I just prefer a cleaner screen. So you will get shades of opinion but yes, I think that that approach sounds good. As with anything, demo trade it and see how you do.
Each market and each time interval have different “ideal” indicators and indicator settings to use. On the EURUSD 30-Minute interval, I like and trust the MACD more than most indicators. However, on a longer term chart (4-hour, Daily, etc) I would not use the MACD. EMA is also better than SMA in the smaller time frames, in my opinion.
It will take a very, very long time to figure out your standard indicators, and they will change many times.
It might sound strange, but Forex trading is actually a very personal issue. There are traders that need many indicators and multiple confirmations before they pull the trigger, where others draw just a trendline and two S&R levels.
In both cases demo trading your system for a few months is necessary.
Personally I would think of adding the RSI on that screen.
Not strange at all - that is one of the reasons that it can take so long to learn Forex. A piece of quality advice for one trader can lead another in the wrong direction entirely. Trading is a very personal thing, you have to find your own style. Two people who disagree can both be right.
LOL, I expect you’ll get about as many opinions as there are indicators. I glance at MACD as a trend indicator and sometimes stoch as a ranging oscillator. Of course, all indicators lag price action, and I like to stay as simple as possible. There are no perfect indicators to my understanding. Some would say the MACD is way too slow to be helpful, but that’s OK since I’m not into speed trading. I like trades that last for days. Some would say that oscillators like the stoch are no good in trends since they saturate at one end or the other of the range. It doesn’t bother me. As long as that’s the end I’m trading with, I just move up a time frame. Some would say price action is most perfect, since each tick represents an actual trade, but even so, I can’t say it’s 100% predictable, for me at least. I’d say if you get direction right 80% of the time, that’s good enough with proper money management. I try not to throw away the good in search of the perfect. Just my own humble opinion.
You might think about playing around with the MACD settings and customizing it. The moving averages (at least for me) are good for SR levels, but all the indicators balance “noise” and aggressive entries/exits with more stable lines (generally derived from the time frame used to calculate the specific indicator). Also, 100 and 200 MAs are very strong SR lines, why wouldn’t you use those? I have busted before by missing the forest by seeing the tress, and daily/weekly charts are much much stronger indicators for support and resistance.
Back testing is great, hindsight is 20/20 but it can help you hone and personalize your trading strategy.
Hi,
it’s just impossible to say whether it works or not. Every trader has different views on indicators and analysis. Some don’t use none of them. Some use as much as possible. For me, at different time frames, on different currency pairs -different indicators work. MACD is a good one. Classic 
I really like using MACD and candlestick patterns, support and resistance and trend lines. So to answer the questions, yes - it’s enough, if it works for you :]
I completely agree! What works is what works. You can’t argue with results. I use 100ma and 200ma and a macd indicator for the most part. Break out trading I don’t use anything though, well except for support and resistance. The circled are points of entry long. When the macd is below the zero on an up trend and crosses up I go long. Vise versa on a down trend. I always look at the 4h to see if macd is crossing against the 1h or 30m view trend.
