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 don't have to rely on other Stock Index traders to generate them 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 Stock Indices trading Strategies is to open a free practice demo account and test your signals on this practice account risk free without risking your money, then once you have tested your strategies & they are profitable you can then use them on a real account.

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

So, How Can a Trader Generate Trade Signals?

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

A Indices Strategy is a combination of one or two or more technical indicators with written Indices rules of how these indicators will generate these signals.

Take an example of the simplest Index Strategy known as moving the average crossover method. A buy or sell is generated when there is a crossover of the two moving averages: either a buy for an upwards crossover or a sell for downward trend.

Stock Index Trade Strategies For Beginners with Examples

How Can a Trader Generate Signal? Stock Index Strategy for Beginners?

Example of Generating Stock Indices Trade Signals Using Moving Average Crossover Method

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

Stock Index Trade Strategies For Beginners - How to Trade Stock Indices

How Can a Trader Generate Signal? Indices Strategy for Beginners? Example of Online Trade Strategies & Trade Strategies

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

Index Strategies For Beginners - Day Trading Stock Index Strategies

Generating a Trade Signal - Buy & Sell Signals

Stock Index Strategies

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

Moving average cross-over trading method
RSI
MACD

The written Stock Indices rules are:

How Can a Trader Generate Signal? Index Strategy for Beginners?

Stock Index Strategies For Beginners - Day Trading Indices Strategies

Stock Index Trade Rules:

Buy Signal is Generated when:

Both Moving averages going up
RSI indicator value above 50
MACD above center line

Sell Signal is Generated when:

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

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

How Can a Trader Generate Signal? Indices Strategy for Beginners?

Generating Buy & Sell Trades - Stock Index Trade Strategies For Beginners

Exit Signal

Exit signal is generated when MA, RSI & MACD technical indicator give a signal in opposite trend direction.

The trade chart timeframe to use is 1 hour timeframe or 15 minutes chart timeframe depending on what type of trader you are.

For a beginner trader the above written Indices rules will give goodbuy & sell trade signals, only thing that a stock index trader needs to do is to have the discipline to follow the written signals rules the exact way they are, & wait for a buy or sell trade transaction to be indicated by your Stock Indices strategy & trade after the signals have been generated, not before they are generated.

Get More Tutorials & Courses: