Thursday, December 15, 2011

How to choose the best combination of Forex indicators?

Of the most important things that must be traded in the Forex market that it is aimed at selecting the best set of indicators of Forks, and the challenge is to integrate these indicators in an intelligent way. This means that the indicators should give different types of market information and to confirm each other and not to return to each other.
When the availability of two or more indicators Forex matching information on prices, this does not help to improve circulation, and while Forex traders call this "confirmation signal", you may be in fact the same data type, and must be called "repeat" instead of "confirmation." When there is a risk with money, it's important ...
If you choose the technical indicators are random, it is likely that you will choose some of the indicators are based on similar studies. How can you avoid this? For a start, the traders to know what are the types of Forex indicators they use. There are general categories of indicators are:
Indicators of the style.Indicators of size.Indicators of activity.Volatility indicators.Signs of rotation.Traders should avoid using a lot of Forex indicators of the same category. There is also a simple way to identify similar indicators, as it is during the installation of the selected indicators on a particular table, you will be able to see a pattern similar to the behavior of indicators, so if your rose and fell almost the same intervals, it is likely to provide similar data.
This is an example Forex indicators that provide the same data:
Note that the index of Momentum and RSI is an oscillator final and both acting in a distinctive pattern is similar. For signs of quality, you must choose one of the three indicators and exclude the rest.
This is an example Forex indicators that provide different data:
Index RSI is an indicator of Momentum (activity), and the MACD indicator of the pattern, while the volume index belongs to a class size indicators. And represents each of these price indicators from a different perspective, the study provides a vehicle for the market.
Use these simple rules on the selection of the best set of indicators Forex, by experts in the trading in the Forex markets to study the market and trading of high quality.

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