When it comes to making use of indicators properly, most traders get it wrong. This is where these traders fail to get their expected treasure from this global money chest. It’s pretty simple- an ideal concoction of two indicators gives the best results when trading. So, to instil awareness concerning the best combinations, here’s highlighting Forex top 10 indicator combinations.
However, there are a few things one needs to know before-hand. So stick around, information conveyance is only starting.
Straightening out characteristics of top indicator combinations:
For those new to this venture and learning a thing or two about indicator combinations they
• Should always choose a pair which tells them about momentum, trend, certain market patterns, Support and Resistance levels
• Must make use of a pair which serves different purposes such as one helping to find the entry point and the other aiding in determining the exit
• Ought to use a pair which complement each other and add value to a trader’s market analysis! Plus one should opt for a pair which also keeps their trading charts clean.
Now, as these pointers are clear, let’s get back to highlighting Forex top 10 indicator combinations.
10 best combinations to use for trading:
1. Strike Trades and ATR
Strike is a straight up instantaneous trade basing completely on entry and exit positions. ATR is an indicator which aids in spotting exit points and the momentum of the existing market. Find a proper exit point, enter into a position and profit.
2. Awesome oscillator and Fractals
This serves traders similarly as the above combination. Awesome oscillator is a top market trend and momentum identifying tool while fractals account for easy identification of Support, Resistance and trading entry and exit points.
3. Trend lines with Fibonacci
Fibonacci as an indicator aids in determining entry and exit traders and Support/Resistance trend lines. It’s simply perfect for this format of trading.
4. Moving Average and Fibonacci
MA helps determine patterns and trends. Fibonacci serves the role of trade entry, exit and Support/Resistance
5. Parabolic SAR and Moving Average
The former is a Support and Resistance indicator which also states entry and exists. MA straightens the patterns and existing market trends.
6. Trend Lines and Divergence
With this combo, one can easily identify, momentum, trend entry, exists and also Support and Resistance points.
7. MACD and Swing
MACD is easily one of the most common indicators around. It’s picture perfect for swing trading. 9 day MACDs help in gauging the range and extent of price action on the basis of similar historical patterns.
8. SMA + EMA and scalping
Simple and Exponential moving averages analyse currently market trends and patterns. Considering that scalping is all about price action happening straight up every single second, this is a match-made-in-heaven.
9. 29 Day MACD and Carry
MACD can also come in use on larger time periods just as effectively. Carry trading is all about finding out a currency pair which is perfect for interest differentiation. If this MACD shows minimal buy and sell signals and an overall stagnant market condition, the carry’s good to go.
10. SSI+ Bollinger for Day Trading
SSI is for denoting overall trader sentiment and Bollinger band helps in determining the range of transaction along with its effect of price action. Day trading gets simpler with a proper forecast on market sentiment and upcoming price action.
Get the drift? Forex Top 10 can be anything. If it comes to indicators and strategies though, this is as good as it can get.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.