Forex signal 30 extreme mt5
Error in reading forex signal 30 extreme mt5
Technical indicators of forex signal 30 extreme mt5 not only take advantage of data on price movements that have occurred, but also price movements that are currently happening.
That is why – if you pay attention – technical indicators are always moving or changing (up-down, appearing-disappearing, or changing color) following the latest price movements.
Take, for example, the Parabolic SAR.
You will often find the SAR dot appearing below the bar/candlestick, but then the dot disappears and moves to the top of the bar/candlestick that you observe.
That’s because previously (based on the programming algorithm) the SAR point should have been below the bar/candlestick, but because the price kept changing and making the SAR calculation change, the SAR point then “moved place”.
In essence, technical indicators can change according to market conditions.
The example of the Parabolic SAR case above is just one example. Maybe you often hear your fellow traders chattering, “Wow, the stochastic is deceiving! It was already crossing up, uh he came down again!”
Actually, brethren, the stochastic is not deceiving. We are the ones who often misinterpret stochastic conditions. That the signal from the stochastic can fail, yes. But he didn’t cheat.
Wait for Confirmation of Closing Bar/Candlestick of forex signal 30 extreme mt5
To avoid misunderstandings or misinterpretations that give rise to false signals, you need to wait until the signals that appear from the technical indicators are actually confirmed.
I have explained above that technical indicators can change following the latest price developments, so the key is that you have to wait until the bar/candlestick you are using is completely complete.
What do you mean?
Complete here means that it is closed.
Let’s return to the deceptive stochastic charge earlier.
For example, if you use the H1 time frame candlestick, then to confirm the signal from the stochastic make sure the candlestick is one hour old. Wait until the candlestick closes, exactly one hour.
The signal given by the stochastic (buy or sell) will be more confirmed if the candlestick is completely closed.
Use Multiple Indicators
Another way to minimize false signals is to combine several technical indicators. This method is quite widely used by experienced traders. This combination of several indicators is then commonly referred to as a trading strategy of forex signal 30 extreme mt5.
By using some technical indicators, you will be able to see another point of view. Let’s say you combine the Moving Average (MA) with the stochastic.
When the stochastic shows a buy signal but the MA is pointing downwards, you can be careful because the buy signal that appears may not be too strong, or it may be false, because it is against the current trend.
But remember, you should not use too many indicators to avoid confusion. It is recommended to use a maximum of three different indicators in one chart.