Trading System
Trading System, what's trading strategy?
Sell Trade Signal
So the above is a trade system, simple strategy that's a combination of two indicators.
- 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.
- RSI - RSI crossover over Center-mark, 50 level mark, generates either a buy/sell signal.
- 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 placed the take profit at the support line where the stock price reached before pulling 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 as a stock indices trader 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.
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