Choosing the right indicator
The right choice of a trading system means almost 100% chance of success. An investor views any trading technique as a tool for earning profit, nothing else. Trading without a system is simply relying on luck, which means there is a high probability of losing both money and time.
In every trading system, indicators occupy an important place, so the main thing is to choose them.
How can a novice trader choose a good indicator among the entire list? Is the indicator working correctly? What should you aim for when setting up the indicator?
So, in order, in fact, choosing an indicator is not so difficult, but it is not easy either; it is important to understand what qualities the most optimal indicator has.
Important properties of indicators:
- Smoothness of the indicator. The indicator must correctly determine speculative dynamics on the chart.
- Indicator efficiency. The indicator must respond quickly and accurately to trend reversals.
- Indicator compliance. Your indicator should be stable and in line with the trend, without sudden changes in direction or jumps.
If you choose the “ideal” indicator, then literally in a matter of days, if used correctly, you will earn good capital. But let's figure it out, does such an indicator exist with the qualities described above? – Unfortunately, no such thing exists. The reason for the absence of such an optimal tool is easily explained; at the moment, such a mathematical model has not yet been implemented by programmers, and many mathematicians and programming specialists believe that it is impossible to obtain an indicator of complete compliance with properties. But not everything is so bad, you can strive to work with the most similar indicators in properties; fortunately, such indicators exist.
Today we will talk about the XPMA+ trading strategy, which offers for analysis the use of indicators with the most effective mathematical indicators.
Advantages of the XPMA+ trading strategy
We will talk about a simple trading strategy. XPMA+ is easy to use and has a good analytical apparatus.
First of all, to work on the strategy, download the template and paste the indicators from it into your terminal by copying. Next, download the template using a file with the tpl extension, open the chart for the trading asset you need.
We enter trades using the XPMA+ strategy on time and correctly
You should open a trade in a timely manner, while XPMA+ gives a signal, a red up arrow appears and a sound signal appears. Please note that at the same time as the signal, the blue line of the indicator will change color to red, and at the transition point you will see yellow.
Exactly the same method for purchasing, when BBands changed direction, the color will change from red to blue.
Please note that entering a trade is possible when the DPO crosses the 0 mark and then moves upward; in addition, there is an important circumstance when the SMA has a certain period of 55.
Open a trade DOWN
An important condition is, first of all, a sound signal indicating the dynamics of the decrease; a blue arrow appears on the screen. The BBandsStop indicator changed color to red when it appeared on the chart. The signal to sell will be the DPO line, which breaks the 0 mark and goes down. The SMA line runs from bottom to top and is located above the bodies of the candles.
We suggest using the M15 timeframe for trading, calculate the expiration date from 1 to 5 candles and calmly buy options.
As you can see, understanding this trading system is absolutely not difficult; trading using the XPMA+ system will be of interest to both experienced and novice investors.
Details about preparing to use the XPMA+ trading system
- You need to copy indicators to the MetaTrader 4 terminal to work;
- Open the price chart of the currency pair and run the template from the file - tpl.
Rules for opening an UP trade:
- An XPMA signal occurred and a red upward arrow appeared. A yellow area appeared along the XPMA Line when the color changed to red from blue.
- BBands: the direction and color changed to blue, BBands formed under the candles.
- DPO movement upwards, breaking the zero mark.
- SMA with a period of 55 has broken through the candles from top to bottom and is located below the candles.
Rules for opening a DOWN trade:
- An XPMA signal occurred and a blue upward arrow appeared.
- BBands: there was a change in direction and color to red, BBands formed above the candles.
- DPO movement downwards, breaking the zero mark.
- SMA with a period of 55 has broken through the candles from the bottom up and is located above the candles.
Key settings for the system:
- Timeframe from M15 or more;
- Validity period from 1 to 5 candles;
- Opening transactions on assets of currency pairs;
- The strategy indicators are of the trend type, so it is quite logical to work with the system during market volatility.
We recommend that you open transactions only on the platform of a trusted broker, such as Binarium . Then your funds will be reliably protected, and from the first minutes you will appreciate the convenience of the trading platform and competent technical support service.
The Binarium company provides high-quality service and maintenance to its customers. The binary options broker Binarium has been among the best in the financial market of the Russian Federation for several years; the company and its activities are regulated by the Center for Financial Markets.
Download the XPMA+ strategy for free
Can't figure out how this strategy or indicator works? Write about it in the comments to this article, and also subscribe to our YouTube channel WinOptionSignals , where we will definitely answer all your questions in the video.
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