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 create their own trade strategy that they will use to determine when to open a buy or sell trade position.
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 Signals?
The best method of generating buy & sell signals is through systems, You can Learn how to come up with systems from the tutorial Systems on the right navigation menu under the lessons Learn Key Concepts.
A system is a combination of one or two or more trading indicators with written trade rules of how these technical indicators will generate these trade 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 percentage% ratio is one that is a combination of:
- Moving average cross-over trading method
- RSI
- MACD
The written rules for buy & sell trade signals are:
Generating Buy and Sell Signals Strategy
Forex Rules - for Buy and Sell Signals:
Buy Trading Signal is Generated when:
- Both Moving averages going up
- RSI value above 50
- MACD above centerline
Sell Trading Signal is Generated when:
- Both Moving averages going down
- RSI value below 50
- MACD below centerline
Generating Buy and Sell Trades - How Do You Know When to Buy or When Sell in Forex?
Exit Signal
Exit is generated when MA Moving Average, RSI and MACD give a signal in the opposite trend 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 and 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/sell signal to be indicated by your strategy & trade after the buy & sell trade signals have been generated, not before they are generated.
Study More Tutorials & Lessons:
- Chandes Dynamic Momentum Index Gold Indicator Analysis
- What is 1 Pips Equal to for UsTec100 Stock Index?
- How Can I Trade US 500 Stock Index?
- MT4 Grid, Volumes, Auto Scroll & Chart Shift in MetaTrader 4 Platform
- Profiles & Saving a Profile in MetaTrader 4 Trading
