Trading System

Trading System, what's system?

Sell Trade Signal

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

MAs - 2 MAs are used to form the MA crossover system. This cross over system generates signals when the two MAs crossover 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 & when the prices movement are about to change.

Sell Indices Signal Rules

To generate a sell stock signal we use the following signals

Moving Average moving downwards

RSI below the 50 center mark

For This system you would have placed the take profit at the support line where the stock price reached before pulling a retracement.

Buy Signal Rules

To generate a buy stock signal we use the following signals

Moving Average heading upward

RSI above the 50 center mark

Buy Trading Signal

A trading system is a good method 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 trade with the ease that profitable traders trade with. So take some time to practice the art of executing your trade signals that you generate from your tradingtrade system.

Study More Tutorials & Lessons:

Trade Stock Indices

Trading System

Sell Indices Signal Rules

Buy Signal Rules