4 Example Templates
When creating your own indices trading system, there are a few things to keep in mind. Your indices trading strategy needs to be able to spot new Indices Trading market trends, while at the same time making sure you do not to get faked out - indices trading whipsaws. The real trick is, once you have created a indices trading system that works for you, stick to it. Being disciplined will help you a lot in becoming successful in stock indexes trading.
Before trading Indices Trading on a live indices trading account, you have to figure out what indices trading strategy works for you. It is good to know in what indices chart time frame you are going to be working in, and how much you are willing to risk once you begin indices trading. All these factors should be factored in, and should be written down within your indices trading plan. A good place to test this indices trading plan would be on a free demo practice trading account. This is where you test your indices trading strategies risk free without investing money to determine which indices trading strategy is best suited for you.
So, now how can a Indices trader like you come up with a "good indices trading system" or the "best indices trading system"?
To come up with the best indices trading strategy the first thing to do is to define your indices trading objective or goal:
The following example shows a goal and explains the indices trading rules of how to achieve that goal
Goals of Indices Trading System
1.Identify a new indices trend
Moving average crossover strategy indices trading strategy is the most commonly used strategy to identify a new indices trend. The time to open a long or short trade is determined when two moving averages indicators cross over or cross under each other.
2.Confirm the new indices trend
Indicator based Indices Trading System
The best type of a indices trading strategy is one that is indicator-based. You will find it straightforward to generate the stock indices signals and thus less error-prone on your part and this will help you to avoid stock indices market whipsaws.
There are several things we want to achieve when creating a indices trading system:
- Find entry points as early as possible.
- Find exit points securing maximum gains.
- Avoid fake entry and exit signals.
- Proper Indices Trading Money Management Guidelines
Accomplishing these four goals will result in aprofitable indices trading strategy that works.
The last piece of information needed, is deciding how aggressive you are going to be when entering and exiting a trade. Those indices traders who are more aggressive wouldn't wait until the stock indices chart candlestick closes and would enter as soon as their indices indicators match up. But most indices traders would wait until the stock indices chart candlestick of the chart time frame they are using has closed, to have more stability when entering a the stock indexes trading market.
To get profits out of the stock indexes trading market you need to build your own profitable indices trading system; a trading strategy that will generate profitable stock indexes trading signals. You need to have your own indices trading strategy that will help you achieve your financial goals. Sometimes the best indices trading systems are the ones that you build on your own. No need to keep searching online for the best indices trading systems or for indices trading systems that work, this website provides you with all the indices trading tools required to help you and guide you on how to come up with your own indices trading systems.
Below is an example of a Indices trade system based on RSI, MACD and Stochastic.
Indices Trading System - MT4 Indices Trading Chart Templates Indices Trading Systems
The stock indexes trading system example above is comprised of four indices technical indicators in total, all of these generate Indices trade signals using different strategies, the moving average will generate stock indexes signals using the moving average crossover strategy shown, the RSI indicator, Stochastic indicator and MACD indicator use different technical analysis to generate the long and short signals as shown in the above example. How to generate these indices trading signals is discussed in the next topic (on the sidebar navigation menu under key concepts).
For beginner stock indexes traders, it is difficult for them to create their own indices trading strategies since they do not have much knowledge about the stock indexes trading market. However, this learn indices trading website will explain how a beginner indices trader can create their own free indices trading system in just seven easy steps. The best strategy is the one you come up with yourself and learn how to trade the stock indexes trading market with it.
The main advantage of creating your own free indices trading systems is that you will know how to make profits by yourself - and not rely on other peoples efforts.
In the next indices trading lesson located at the sidebar navigation menu below the indices trading key concepts will show you how to create a indices trading system like the one above, write it's indices trading rules and how to back test the stock indexes trading system on a practice demo stock indexes trading account before using it on a live stock indexes trading account.
4 Examples of Free Indices Trading Systems
Example 1: The Moving Average Crossover Indices Trading Strategy
The moving average indicator cross over strategy uses two moving averages to generate indices trading signals. The first Moving average uses a shorter period and the second is a longer period.
Moving Average Crossover Indices Trading Method - Moving Average Crossover Indices Trading Strategy
This above indices trading strategy is referred to as the moving average crossover strategy because stock indices signals are generated when the two averages cross above or below each other.
Indices Trading System Trading Example - Short and Long signal Generated by Indices Trading System
A buy stock indices signal or going long trade is generated when the shorter moving average indicator crosses above the longer moving average indicator (Both Moving Averages Going Up).
A sell stock indices signal or a going short trade is generated when the shorter average indicator crosses below the longer moving average indicator (Both Moving Averages Going Down).
Example 2: Stochastics Indices Trading System
Stochastic Oscillator stock indices indicator can be combined with other Indices indicators to form a stock indexes trading system.
- RSI indices indicator
- MACD indices indicator
- Moving Averages stock indices indicators
Trading Systems Indices Trading Example - MT4 Indices Trading Chart Templates Indices Trading Systems
Short Signal or Sell Indices Trading Signal
How the short sell stock indices signal was generated
From our indices trading rules the short signal is generated when:
- Both Moving Averages are heading down
- RSI is below 50
- Stochastic heading downwards
- MACD heading downwards below center-line
The short signal was generated when all the written indices trading rules were met. The exit signal is generated when a stock indices signal in the opposite direction is generated.
The good thing about using such a indices trading strategy is that we are using different types of indices technical indicators to confirm the stock indices signals and avoid as many indices trading whipsaws as possible in the process.
- Stochastic - indices trading momentum oscillator indicator
- RSI - indices trading momentum oscillator indicator
- Moving Averages - indices trend following indicator
- MACD - indices trend following oscillator
Based on the indices chart time frame used - this strategy can be used as Indices Trading scalping system when the minute stock indexes trading charts are used or as a Indices Trading day indices trading system when hourly stock indexes trading charts are used.
Example 3: Trading System Indices Trading Example
This stock indexes trading system is fully explained within the indices trading plan on the indices trading plan tutorial on this learn indices trading website under the Indices Trading key concepts section located on the right navigation menu.
Indices Trading Chart Time frame
1 hour indices chart
Indicators that identify a new indices trend
Moving Average Crossover Indicators Strategy
Indicators that confirm the indices trend
STOCHASTIC OSCILLATOR indicator
1. Both MA(moving averages) pointing up
2. RSI above 50
3. Both stochastics going up
1. Both MA pointing down
2. RSI below 50
3. Both stochastics going down
1. MA Indicator gives opposite signal
2. RSI gives opposite signal
Stop loss- 35 pips
Take Profit Indices Trading Order- 70 pips
Reward to Risk 2:1
MT4 Indices Trading Chart Templates Indices Trading Systems
The Gann Swing Oscillator is meant to be used in combination with the Gann HiLo Activator and Gann Trend to form a complete indices trading strategy commonly referred to as the - "New Gann Swing Chartist Plan". Within this indices trading strategy the Gann Swing Oscillator is used to help determine stock indices market swings for trading only within the current indices trend is shown by the Gann Trend.
Below is the example of the New Gann Swing Chartist Plan
The Gann Chartist Plan - Indices Trading Systems - MT4 Indices Trading Chart Template Indices Trading System