Index Methods
For this indices methods tutorial we shall look at two indices methods that are most often used to trade indices
- Index Strategies & Systems
- Stock News Method
Index Strategies - Indices methods
Index trade strategies like the ones on the indices strategies section of this website are all based on indicators. These indices strategies all show different indices methods that a trader can use to trade indices.
For illustration the main strategies are
Moving Average Indices Strategies Methods
Bollinger Bands Stock Strategies Methods
As a trader you might want to combine these indices strategies to form a good method. A method can also be referred to as a stock system.
For Example as a trader you may want to combine the following stock indicators, based on the strategies methods of these indicators to form a indices method.
RSI
MA Crossover System
Stochastic Oscillator
By combining the above indicators you as a stock indices trader can now come up with the following indices method
Index Method
To generate trading signals to trade with, a stock index trader should create simple rules which define the method and specifies how signals are generated.
For the above trading method to generate a stock signal then the following rules are used:
Buy Trading Signal
- Both Moving averages heading up
- RSI value above 50
- Both Stochastics moving up
Sell Signal
- Both Moving averages moving down
- RSI value is below 50
- Both Stochastics heading down
Exit Signal
- Moving Averages give an in the opposite trend signal
- RSI gives an in the opposite trend signal
You as a trader can use above trading strategy to trade any stock chart & generate trading signals which you as a stock indices trader can transact with.
Get More Courses and Tutorials:
- Can You Trade FTSE MIB 40 in MT5 Software Platform?
- Index Sell Limit Trading Order Example
- How to Use Zigzag MetaTrader 4 Indicator on Stock Index Chart on MT4 Platform
- MetaTrader 4 Index Platform/Software Work Space
- Informative Learn Indices Guide for Beginner Traders
- How Can I Place Dow Jones 30 in MT4 Software/Platform?
- UK100 Index Market Hours


