The goal is to pick the best indicators set. The challenge is to combine indicators in a smart way. This means that indicators should deliver different type of information about the market and confirm each other rather than duplicate signals. When two or more indicators provide identical information about prices, it hardly ever helps trading better; and while Forex traders call it “signal confirmation”, it is in reality could be the same type of data, and should be called “duplication”,rather than “confirmation”.
When money is at stake, the problem becomes serious… If you are randomly choosing indicators for technical analysis, chances are you’ll pick some with similar studies. How to avoid this? First of all traders should know what type of indicator they use. There are general categories of indicators:
- Momentum indicators
- Volatility indicators
- Cycle indicators
- Trend indicators
- Volume indicators
Traders should avoid using too many indicators from the same category. There is also a simple method of identifying similar indicators. By setting up chosen indicators on a chart, you will be able to basically see a similar pattern of indicators behavior. If they rise and fall in almost similar intervals, they are most likely identical in the type of data they provide.
The best of MT4 indicators
There thousands MT4 custom indicators available for Forex trading. Which MT4 indicators are good? Which one to try out first? Many custom MT4 Forex indicators need further
explanation and trading instructions before anyone can actually use them. Others are simple and intuitive. Testing all 1000+ MT4 indicators is challenging.
Reviewing a list of preferred MT4 indicators, tested by someone else is much easier! To test indicators you’ll need forex MetaTrader 4 platform.
Support Resistance indicators
Price Support & Resistance is the basic most fundamental part of trading Markets react to natural Support and Resistance levels more than to any other signals or indicators imaginable! Many traders after years of research would eventually stripe their charts from all indicators and leave only Support and Resistance lines to guide them through.
Forex charts with proper Support
Resistance levels offers advantage of taking low risk entries, finding proper timing, defined targets, keeping overall confidence in your
position – it’s the very best scenario for any trader.
Learning how to identify Support & Resistance levels takes time and practice. While you practice, don’t
forget to take advantage of specially designed indicators, which help to SEE those S&R levels.