forex trading indicators

[gaminig 10]

which combination of indicators are best for swing trading in forex ?

[torero 10]

gaminig, check out this post here:

 

http://www.traderslaboratory.com/forums/24/cable-musings-793-new-post.html

[Reaver 10]

I'm not a huge fan of indicators, even though alot of times you can mess around with one and find a use for it, I find that they distract me from what's happening for the most part. My setup uses a 60 period wma and a parabolic sar (just for back up s/l plotting and confirmation) on standard settings. I'd say get amongst it and find what works for you....just watch the charts, try MT4 out and go through a few years of data and see what the indicators do if you'd like to see them in action. I did, and came to realize I like my simple set up the best. Best of luck man.

[cowpip 10]

which combination of indicators are best for swing trading in forex ?

 

Good day, Gaminig. The answer you seek will undoubtably vary from one person to the next. Many people like moving averages (20, 50, 100, 200, etc). Others like MACD. Others use these in combinations with other indicators (RSI, etc).

 

But all of the people I know who are very successful in forex KEEP IT SIMPLE. Too many indicators and you'll likely just confuse yourself. It is interesting that most people who start out in forex use lots of indicators, or try just about every indicator they can get their hands on. Yet as they mature in trading, they drop most of them and end up watching price action patterns instead (i.e. triangles, breakouts, pull-backs, continuation formations, reversal formations, etc.). Eventually, you end up with just a few major trend lines, a few horizontal support/resistance lines (such as from major fibonacci ranges), and a whole lot of respect for simple pattern setups at those important S/R zones.

 

Almost every swing trader I know of (with just a few exceptions) usually start out their trades as intraday trades. Once their intraday trades bust important barriers, they become swing-trades and can be managed differently than a typical intraday trade. Those who don't start out as intraday trades usually have the funds to afford much larger than normal stop-losses (> 50 to 100 pips) and can trade strictly from the larger daily time-frames. For most of us with smaller funds, this is not possible, nor perhaps wise.

 

By far, the most important indicator I use is price action alone in combination with the dominant (most important) support and resistance zones. Keeping it simple is the most successful strategy I have found.

[Dr Who 10]

Price combined with an indicator can allow the price to be the indicator if one wants to be creative.

[gaminig 10]

Hello friends

Thank you for the helpful answers. Kindly explain "What is price action"?

 

gaminig

[Kiwi 16]

Price action is watching what price does (or maybe price with volume) and judging your trades based on that. Usually without indicators or maybe support and resistance indicators like:

 

emas

volume profiles

market profile

lines thru significant prior highs and lows

[momentom 10]

IMO, trading is not about indicators but a "structure". A trader needs to create a structure in which to trade so the trend can be seen as well as whether price is cheap or expensive. Indicators are part of this structure. Price action can then determine entries.

 

Exits are a separate matter and need the structure to be able to be relevant.

 

Market Profile attempted to do this but is not quite precise enough for very short term trading.

[torero 10]

Hello friends

Thank you for the helpful answers. Kindly explain "What is price action"?

 

gaminig

 

 

Read this article and let us know if you have further questions:

 

http://www.traderslaboratory.com/forums/f43/price-action-modern-tape-reading-771.html#post4435