How to Confirm Trends Using Indicators & System Indicator Rules

Shown Below is an example of a system that uses three indicators - Moving Averages indicator is used to define the trend and RSI and Stochastic Oscillator indicators are then used to confirm the trend.

Example of Indicators Strategy

How to Confirm Trends Using Indicators & Indices System Indicator Rules

To come up with indicators that confirm the trend -indices traders will need to specify indices rules of how to use these trend confirmation indicators together so as for this strategy to form what is known as a system.

Traders can use the trading system example explained and illustrated below to learn how to come up with a strategy that uses different indicators to confirm the trend.

Writing System Indices Rules for Indicator Strategy

How to Confirm Trends Using Indicators & Indices System Indicator Rules