Trade Stock Indices

Trading System

Trading System, what's trading strategy?

Defining a Trading System

How to Create a Strategies

Writing System Rules

The Procedure for Generating Trading Signals

Recommendations for System Refinement

The Importance and Method of Recording Trading Logs

Sell Trade Signal

So the above is a trade system, simple strategy that's a combination of two indicators.

  1. MAs Moving Averages - 2 Moving Averages are used to form the MA Moving Average crossover system. This crossover strategy generates signals when the two MAs cross-over or under each other.

  1. RSI - RSI crossover over Center-mark, 50 level mark, generates either a buy/sell signal.

  1. You will also require to learn how to draw trend-lines like the ones above so as to know when a trend is broken and when prices movement are about to change.

Sell Indices Signal Rules

To generate a sell stock signal we shall use the following signals

Moving Average moving downwards

RSI is below the 50 center line

For this system, you would have set the take profit at the support line where the stock price previously reached before experiencing a retracement.

Buy Trading Signal System Rules

To generate a buy stock signal we will make use of the following signals

Moving Average moving upwards

RSI value is above 50 center-mark

Buy Trading Signal

A trading system is a good technique to generate stock signals & although the above example look simple trading the above signals in real-time will take a lot of time before you can start to execute your trading plan with the ease that experieced profitable traders trade with. So make sure that you as a trader you take enough time and practice for a while and for some time - take the required amount of time to practice how to execute the trades that are generated using your trading system. Learn how to interpret these trading signals when executing your trades in the online trading market.

Examine More Guides & Courses:

Stock Index Broker