Best Combinations of Trading Indicators

Is there a foolproof way to always combine tradingview indicators correctly? Answer is no. Are there any rules to follow to get a good combination of trading indicators? The answer, in this case, is yes. By following a few simple tips you can effectively combine trading indicators. Among these rules the most important concerns the scope of the combination. It is true that to do trading it is not enough to use a single indicator but it is equally true that even placing as many indicators as possible is not a good idea. Which path to follow then? That of the middle ground. According to some novice traders, the more indicators you use the higher the possibility of understanding which direction the markets will take. Unfortunately this is not only not true but, often, many errors derive from the fact that too much indicators have been used and without following a logical sense. The first rule to follow to get a good combination of indicators is to not overdo it. Then there is a second rule concerning the types of indicators.

How many types of indicators are there in trading? Despite the extreme variety present, it is possible to identify 4 main groups. I invite you to take into account the importance of this step as knowing the differences between the various groups of indicators is crucial to knowing how to build a good combination. The indicators are divided according to: trend: as the name itself implies, these indicators follow the graphic trend of the asset prices. Based on past performance, they photograph the price trend and its strengthvolume: useful to understand the potential strength of the price trend, the indicators that fall into this type highlight the volume of the traded assetvolatility: they photograph the level of variability of the asset price in a given period. The higher the volatility, the greater the risk the investor takes. Attention because at the same time it is the volatility that creates the conditions for investing. Especially in CFD Trading, price fluctuations are important to have good entry opportunities.momentum (and in this case we are talking about oscillators): they allow you to identify the overbought and oversold levels, near which a trend reversal or a simple pullback could be triggered.

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