Just discovered this website & forum - what a great resource.
I have just started trading. Currently I have been playing around with MA/MACD and RSI Indicators as the basis for my trades. My Question; is this sufficient or do I need to be using more? If so, what else should I be doing?
Any tips/advice would be appreciated.
Rather than suggesting more indicators, can I ask why you’ve chosen the ones listed first?
Simplicity and popularity based on research. Interested in your thoughts!
I would recommend using Moving Average as well. What is most important, however, is to experiment with different indicators until you find the ones you feel suit your trading style the best.
I cant comment on how many or what type of indicators to use but I didnt see support and resistance listed so I would start there. Also dont use to many oscillators and they are for basically the same thing so its pointless.
Like what dianajs said, you gotta experiment. Sure, you might have picked up MA/MACD and RSI as your go-to indicators for technical analysis but are they the thing that works for you tho?
I started with Ichimoku and that kinda bite me back. So gotta keep experimenting with different indicators and parameters to find what works. This, and also lots of backtesting (as early as 3 years ago til today) and see if the experimental strategy works.
Many indicator already available on default mt4, and as trader can choose indicator that needed, and also important, will need understand with rules indicator to help learn discipline in trading
But might not all trader they like use indicator and some of them learn simple analysis based on naked chart pattern combine with price actrion but they push about risk management strictly
After trading two years I have selected only one indicator to use on my charts. I am using only Bolinger Band with it’s default settings
For starter traders, Macd is a great indicator to use. Its a very powerful indicator that generates strong signals but you need to be very patience in order to use this indicator properly.
TD Ameritrade has an excellent webinar on MACD see if this will get you to it
I use it as a confirmation tool along with RSI - together they can tell you a lot.
My friend with some experience in trading told me that simple strategy is the best one so I decided to follow his offer and to use support and resistance levels with MACD. That’s all. I doubt if it’s enough, cause people use lots of other oscillators and trade with bigger profit.
I always use indicator which are freely available in meta trader. In my view, having simple strategy with simple learning is best as a trader in Forex. if you use so many things in one chart then it will be complicated, and you will confuse about your right trade for profit.
There are too much indicators in the platform, and you need to read about and try them all. So test and use them in your strategy, after all you will come to the decision that you do not need more than 1-2 indicators for your own strategy.
How much experience does your friend have? It sounds good really.
I use support and resistance levels with price action patterns: Pin-bar, doji, inside bar, outside bar. And it’s quite enough for successfull work.
I agree. I found learning about things like this more helpful, overall, than additional indicators.
Might some trader after they in desperation when they seeking good and profitable indicator but can’t found it hence some of them back to nature with learn simple analysis based on support and resistance as trigger decision and this also need patience
I agree as well. I do use indicators, but they help me confirm what I have already learned from candlestick analysis, rather than using them as my main guide when I make trading decisions.
Technical indicators are a great help for newbie traders but you shouldn’t use too many of them. Only a few simple indicators are enough for you to get some assistance from them. RSI and Macd are good for starters.
That is a good point - too many indicators at once can give conflicting signals that will only lead to confusion and that is not a good thing.
RSI is the best indicator for the newbies but I would like to suggest all the newbies that they should learn using this indicator as if anyone will use RSI with proper understanding then surely he can earn huge amount from his trading.