| I am forever looking for new indicators that work | | | | It's easy enough to figure out that when both lines |
| well together and confirm each other. Indicators can | | | | are green you want to be long. When they're red, |
| show that either a trend is in place or that price | | | | you're short. I have found these are as effective in |
| direction is changing and a new trend is starting, or | | | | shorter timeframes as in long. You can trade the M15 |
| there is no trend and prices are rangebound. | | | | or the H4 equally well. If you're fortunate enough to |
| Early in my trading career I often fell prey to 'analysis | | | | be able to sit in front of your computer for a while |
| paralysis'... being so overwhelmed with information | | | | during the London and New York trading sessions, |
| from many different indicators that it was nearly | | | | great. If not then you'll have to devise a plan to |
| impossible to reach any kind of decision that I could | | | | trade when you can't be staring at your computer |
| act on with confidence. As I've matured in my trading | | | | screen non-stop. |
| career I've come to appreciate simplicity. More is not | | | | Using a signal provider a few years back I learned |
| necessarily better...and simple is good...as long as it's | | | | this staggered approach. Let's say both lines have |
| effective. | | | | just turned green so you're contemplating a long |
| You may have seen the 'forex sniper' indicator. It's a | | | | trade. The angle of the lines is important. If they're |
| line that changes color to show whether prices are | | | | moving laterally that shows no real trend. You want |
| moving up or down. Usually green is up and red is | | | | them pointing upward at a clear angle, say 40 to 50 |
| down. If direction is indecisive the line turns yellow. As | | | | degrees or more is ideal. What ever number of lots |
| with most MT4 indicators you can change these | | | | you decide to trade - divide that into thirds. |
| colors to anything you like. Recently I've come across | | | | Let's say you are trading ten mini-lots. For the first |
| two such lines. Together they make for a trading | | | | four mini lots place a profit target of 10 pips. For the |
| system that is so simple it's stupid - and it can be | | | | next three mini lots the profit target is 20 pips. For |
| used on any timeframe. | | | | the final three mini lots place no target but add a |
| The first line is the Non-Lagging Adaptive Moving | | | | trailing stop lost of 10 or 15 pips. The overall stop loss |
| Average (NLADA) with a value of 45. We've looked | | | | for this trade is just below the bottom bar/candle of |
| at the NLADA before in conjunction with the | | | | the recent low. With this arrangement your upside |
| Beginners Alert. The second line is called the "LSMA in | | | | potential is significant while your downside risk is |
| Color". I'm reasonably sure the MA part stands for | | | | limited. |
| Moving Average. I have no idea what LS means. In | | | | Remember, you can do very well earning just 10 pips |
| any event the value for this one is 34. These values | | | | a day. You compound that over a period of time and |
| are adjustable as well. | | | | you'll be in good shape before too long. As always, |
| As I've tinkered with these two I've added and | | | | it's a good idea to trade only in the direction of the |
| subtracted other indicators to complement them: | | | | overall trend. If the longer-term trend is up, then skip |
| EMA Crossover Alerts, MACD, Awesome Oscillator, | | | | the short trades. They'll tend to be short and weak. |
| RSI, Stochastics, CCI - the gamut. When all the dust | | | | This approach is popular because it doesn't take a |
| is settled I find they work best by themselves | | | | rocket scientist to understand it. This is not brain |
| without all the additional noise created by additional | | | | surgery. Anyone, even the novice trader, can |
| indicators. | | | | understand and implement this. |