Hi, im new here. I have been struggling to identify which combinations of indicators to use in identifying setups. Ive been demo trading for three months now and I feel i should know but dont.
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Its a decent question.
There are problems with all indicators. They are all derived from price but they are not price. So its like checking whether petrol for your car is expensive or cheap based on the length of queues at the pumps. Maybe the price was cheap when the queue started: or maybe there isn’t any cheap petrol around so the queues means nothing. And maybe all the petrol stations have identical queues, so what does that prove?
The best indicator is the one that answers a question your strategy absolutely must have an answer to. And there isn’t any better way to get that answer.
I mean, it depends.
But as few as possible indicators is better than as many as possible. And the simplest indicators will trip you up less often than the complex ones.
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Candlestick s , even though they are nt totally reliable ,you might aswell learn sometime.
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Here is a simple method. Experiment with it. See if it makes any difference. No guarantees.
EMA 20
EMA 50
EMA 100
When all three line up in order, buy above, and sell below. Use the Daily or 4hr Time Frame. Set a S/L at 35 pips (350 points) and do what you usually do for taking profits.
Best of luck.
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Based on your trading results, which indicator seemed most useful?