How Do You Know When to Buy or Sell a Currency in Forex? - Buy Sell Signal MT4 Indicators
For a beginner trader wanting to know how to determine when to buy or sell currencies in the market - you should come up with a strategy or a system that has a set of rules that determine when you open a buy or sell trade in the market and when you close the buy or sell trade - this system will use indicators - Buy Sell Signal Indicator MetaTrader 4 Indicators.
An example of a strategy is shown below: traders can use this example system template to come up with their own strategy that they will use to determine when to open a buy or sell trade.
How Do You Know When To Buy or Sell a Currency? - Buy Sell Signal Indicator MetaTrader 4
So, How Can a Trader Generate Buy & Sell Trade Signals?
The best method of generating buy & sell signals is through systems, You can Learn how to come up with systems from the lesson Systems on the right navigation menu under the lessons Learn Key Concepts.
A system is a combination of one or two or more indicators with written rules of how these indicators will generate these signals.
Forex Systems - How Do You Know When To Buy or Sell a Currency?
An example of a FX system that works, and has a high win percent ratio is one that is a combination of:
- Moving average cross over strategy
- RSI
- MACD
The written rules for buy & sell signals are:
Generating Buy and Sell Signals Strategy
Forex Rules - for Buy and Sell Signals:
Buy Signal is Generated when:
- Both Moving averages going up
- RSI value above 50
- MACD above center-line
Sell Signal is Generated when:
- Both Moving averages going down
- RSI value below 50
- MACD below center line
Generating Buy and Sell Trades - How Do You Know When to Buy or When Sell in Forex?
Exit Signal
Exit is generated when MA, RSI and MACD give a signal in the opposite direction.
The chart time frame to use is 1 hour time frame or 15 minutes chart time frame depending on what type of trader you are.
For a beginner trader the above MT4 Indicators Buy Sell Signals written rules will give very good buy & sell signals, the only thing which a trader needs to do is to have the discipline to follow the written rules the exact way they are, and wait for a buy or sell signal to be indicated by your strategy & trade after the buy & sell signals have been generated, not before they are generated.
