How to Generate Signals with Trade Strategies

The only method of trading is through signals, It is best to learn how to generate these signals for yourself, this way you do not have to rely on other Index traders to generate them signals for you.

Generating signals is not easy & requires you to have a lot of technical analysis knowledge & experience, but the earlier you begin practicing how to generate these signals for yourself the better it's for you.

A good method of how to practice generating signals with Index trading Strategies is to open a free practice demo account and test your trading signals on the practice account risk free without risking and investing your money, then once you've tested your strategies & they're profitable you as a stock indices trader can then use them on a real/live account.

The method of how to practice generating these signals & also how to back test them on the practice demo account using the MT4 platform is discussed below:

So, How Can One Generate Trading Signals?

Best method of generating signals is through Index trading Strategies, You can Learn how to develop Index Strategies from the lesson how to create Strategies on the right navigation menu under the topics Index Key Concepts.

A Stock Index Method is a combination of one or 2 or more technical indicators with written Index rules of how these indicators will generate these signals.

Take an illustration of the simplest Index Trade Strategy known as moving the average crossover method. A buy or sell is generated/derived when there is a cross-over of the2 moving averages: either a buy for an upward crossover or a sell for downwards trend.

Stock Index Trade Strategies For Beginners with Examples

How Can One Generate Signal? Index Trade Strategy for Beginner Traders?

Example of Generating Index Trade Signals Using Moving Average(MA) Crossover Method

The trading Strategy example below shows a Strategy using the above MA strategy combined with the RSI & MACD technical indicators to generate buy and sell trades.

Stock Index Trade Strategies For Beginners - How to Trade Index

How Can One Generate Signal? Stock Index Trade Strategy for Beginner Traders? Example of Online Strategies & Trading Strategies

When it comes to generating buy & sell signals, Index traders should use simple Index Strategies to generate these.

Index Trade Strategies For Beginners - Day Trading Index Strategies

Generating a Trade Signal - Buy and Sell Trading Signals

Stock Index Strategies

An example of a simple Index Strategy that works, is one that is a combination of:

Moving Average(MA) crossover trading method
RSI
MACD

The written Stock Index rules are:

How Can One Generate Signal? Index Strategy for Beginner Traders?

Stock Index Trade Strategies For Beginners - Intraday Trading Indices Strategies

Stock Index Trade Rules:

Buy Signal is Generated when:

Both Moving averages heading upward
RSI indicator value above 50
MACD above centerline

Sell Trading Signal is Generated when:

Both moving averages MAs going down
RSI indicator value below 50
MACD below center line

Stock Index Trade Strategies For Beginners - Day Trading Stock Index Strategy

How Can One Generate Signal? Stock Index Trade Strategy for Beginner Traders?

Generating Buy and Sell Trades - Stock Index Trade Strategies For Beginner Traders

Exit Signal

Exit signal gets derived/generated when MA Moving Average, RSI & MACD give a signal in the opposite market trend direction.

The trade chart time-frame to use is H1 time frame or 15 minutes chart time-frame based on what type of trader you are.

For a beginner trader the above written Indices rules will give good buy & sell trade signals, only thing that a stock index trader needs and requires to do is to have and develop the discipline required to follow the written signals rules exactly the way they are, and wait for a buy or sell trade position to be indicated by your Index strategy & trade after the signals have been generated, not before they are generated.

Get More Lessons and Courses:

Trade Stock Indices

How to Generate Signals with Trade Strategies

So, How Can One Generate Trading Signals?

Stock Index Strategies