Many traders to this Day don’t appear to grasp the idea that to be effective, you must trade easy setups and more – to start with, the fewer the indicators that you use to verify your installation, the greater, and these should be reliable and time tested indicators, because there are simply too many to select from. The more indicators you use with your setup, the more confusing and unreliable your trading strategy becomes. You attempt to analyze a trade and you wind up getting only indicator paralysis. Unfortunately many Traders throughout the trading spectrum use indexes incorrectly, an indicator can’t forecast the result of a market. The way I utilize indexes, is that of a confirming mechanism, of the general price and graph setup – indexes used here are simply a few and not more than necessary.
Today’s market Speculator can’t afford to be one dimensional in his approach or methods. The one other Important area of investigation that many a dealer will ignore, is using lower and higher timeframes TF’s to confirm the trade and entrance on the intermediate trading time frame TF. The intermediate TF is The trading TF of a dealer. 1 important rule of Thumb is that, everything on your trading plan all prerequisites , must confirm in your intermediate TF – but you only search for a significant trigger on a greater TF! For an effective analysis And outcome, all appropriate TF’s needs to be exploited. To find the overall feel for an expected trade, you have to look up two or three greater TF’s to confirm price or trend management, i.e. the direction you would like to trade in your intermediate TF.
The reduced TF to that Of your intermediate TF should only be looked at to time your entry – the reduced TF provides you a, more elegant outlook – after this is done you need to return to your intermediate TF and handle the transaction from there. Time frames play an Important part in a seasoned dealer’s strategy or method of investigation – experience tell me that a trade entered with no reference to TF’s especially the higher TF’s besides the intermediate one, will be nothing but a MT4 インジケーター, and will be driving chance to see it through! Be careful and make Sure you and your trading doesn’t fall into this faulty category!