In the beginning, most of you will try out different system and indicators. This is the process of learning. Some people may have up to 20 indicators on screen but in the end those indicators will be cut down to maybe just 3-5.
This happen because the human brain is the best processor there is. With experience we will learn the behaviour of forex and reduce the need for indicators. I have a few friends that finally develop their own trading system and they are profitable up till today. How do i know they are in profit? That is because they have been trading forex for more than a year now.
In forex there a lot of indicators available on the internet. In order for you to create your own trading system, you must understand that less is more. The less indicators you use the easier it is to trade. Lets start on how I created my own trade system.
Of all the indicators that you have tested, take the best 5 and list them down from the best to the worst. Load all the indicators on screen. Look at how the interect with each other. The best indicator is your main signal. This where your buy or sell decision comes from. Your 2nd best indicator is your filter. 3rd your target entry or exit. 4th trend indicator.
Personally nowdays i need only 1 indicator if im scalping. The most simple system is the best. In order to do long term trade i need a few indicators since finding the best entry point is a bit tricky. Below are the list of indicators im using. Maybe could give you some ideas:
- William %R
- MACD
- EMA
- Kijun Sen
Those are my indicators. Only 4 listed from best to worst. Btw William %R is a really good one if you know how to use it. Happy trading
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