Goals Of Your Trading System
- Your system should be able to identify trends as early as possible.
- Your system should be able to avoid you from whipsaws.
1. Timeframe
- What kind of traders you are. (Swing or Day Trader?)
- Which timeframe you will use to trade.
2. Find Indicators that help identify a new trend.
- Use Moving Averages (MA) to identify a trend.
- Use 2 Moving Averages (1 fast & 1 slow) and wait until fast crosses slow.
3. Find Indicators that help CONFIRM trend.
- MACD, Stochastic, RSI.
4. Define Your Risk.
- The amount you're willing to lose.
5. Define Entries & Exits.
- Where to enter & exit to get most profit.
- Wait until candle close.
6. Write Your System Rules & Follow It.
Tags:
forex
accurate forex signals
reversal patterns
candlestick
currency trading
exchange rates
buy stocks online
trend
stochastics
oscillators
