Indices Methods
For this indices methods tutorial we shall look at two indices methods that are most commonly used to trade indices
- Indices Strategies & Systems
- Stock News Method
Indices Strategies - Indices methods
Indices 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 example 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 can now come up with the following indices method
Indices 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 above 50
- Both Stochastics moving up
Sell Trade Signal
- Both Moving averages moving down
- RSI below 50
- Both Stochastics heading down
Exit Signal
- Moving Averages give an opposite trading signal
- RSI gives an opposite signal
You as a trader can use above trading strategy to trade any stock chart & generate trading signals which you can transact with.
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