Saturday, 6 July 2019

Indicators that are often used by traders

The use of technical indicators like complementary foods for the main course, is often ruled out by traders because for them it is confusing because in the end it gives false signals. Well, most of this is probably caused by an inability to use indicators that traders often use.

In fact, this error can occur because Trader A uses X indicator exclusively (without the help of other indicators), for example when the indicator raises signals for buy or sell positions, it is already saturated market conditions (overbought or oversold) so that the trend corrects against trader predictions A earlier.

Up to this point, you might ask, "If only one indicator is not enough, then you have to use indicators?"

Here are some popular indicators that are often used by traders and you deserve to learn, with the hope that these indicators can sharpen your analysis of market trends:

   Moving Averages

It can be said that Moving Averages are "first love" for beginner traders, so impressive and hard to forget. Simplicity in its use is the main reason why this indicator is a favorite choice.

Just use a few MA lines (Moving Average), where one long period MA (100, 200) will be a benchmark for traders to read when an uptrend or downtrend occurs.

For example, when an uptrend occurs, add a few MA lines with a short period (10, 20), watch the position of the MA with a short period, if the position starts to intersect with the long period MA, get ready for a long position.

Also Read :   An explanation of the Momentum indicator

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