How Do You Generate Indices Signals with Trade Strategies?
Only method of Indices trading is through signals, It is best to learn how to generate these Indices signals for yourself, this way you don't have to rely on other Stock Index traders to generate them for you.
Generating Stock Indices signals is not easy & requires you to have a lot of technical analysis knowledge and experience, but the earlier you begin practicing how to generate these Indices signals for yourself the better it is for you.
A good method of how to practice generating Stock Indices signals with trading Strategies is to open a free practice Indices demo account & test your signals on this practice account risk free without risking your money, then once you have tested your strategies & they are profitable you can then use them on a live Indices account.
The method of how to practice generating these Indices signals as well as how to back test them on the demo account using the MT4 trade software is discussed below:
So, How Can a Trader Generate Stock Indices Trade Signals?
The best method of generating Stock Indices signals is through Stock Indices Strategies, You can Learn how to create Stock Indices Strategies from the lesson how to create Strategies on the right navigation menu under the topics Indices Key Concepts.
A Stock Indices Strategy is a combination of one or two or more technical indicators with written Indices rules of how these indicators will generate these signals.
Take an example of the simplest Indices Strategy or strategy known as moving average crossover method. A buy or sell is generated when there is a crossover of the two moving averages: either a buy for an upward crossover or a sell for downwards trend.
Trade Strategies For Beginner Traders with Example
Example of Generating Stock Indices Trade Signals Using MA MA Cross-over Method
The Indices Strategy example below shows a Indices Strategy using the above moving average strategy combined with the RSI & MACD indicators to generate buy & sell trades.
Trade Strategies For Beginner Traders - How to Trade Indices
Example of Online Indices Trade Strategies & Strategies
In generating buy & sell Indices signals, Indices traders should use simple Indices Strategies to generate these.
Strategies For Beginners - Day Trading Stock Index Strategies
Generating a Indices Trade Signal - Buy & Sell Signals
Trade Strategies
An example of a simple Indices Strategy that works, is one that is a combination of:
- Moving average crossover strategy
- RSI
- MACD
The written Stock Indices rules are:
Strategies For Beginners - Day Trading Stock Index Strategies
Trade Rules:
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
Strategies For Beginners - Day Trading Stock Indices Strategy
Generating Buy & Sell Indices Trades - Trade Strategies For Beginner Traders
Exit Signal
Exit signal is generated when MA, RSI & MACD indicator give a signal in the opposite direction.
The Indices trade chart time frame to use is 1 hour timeframe or 15 minutes chart time frame depending on what type of Stock Indices trader you are.
For a beginner trader the above written Indices rules will give goodbuy & sell Indices trade signals, only thing that a trader needs to do is to have the discipline to follow the written Indices signals rules the exact way they are, & wait for a buy or sell Indices trade transaction to be indicated by your strategy & trade after the signals have been generated, not before they are generated.
