Best Indicator Combination of Indicators PDF Gold Trading

Best combination of technical indicators Guide - Stochastic Oscillator Indicator, MAs, RSI and MACD

Stochastic indicator can be combined with other indicators to form a gold system - Buy Sell Signal Indicator MetaTrader 4 Technical Indicators. For our examples we will combine it with:

RSI
MACD
MAs Gold Indicator

Example 1:

Best Combination of Indicators PDF XAUUSD - Best Indicators and Top 10 MT4 Indicators

Sell Trading Signal - Best Combination of Gold Indicators

From our trading system the sell trading signal gets generated when:

Both MAs are heading down
RSI indicator is below 50
Stochastic heading downward
MACD indicator heading downwards below centerline

Sell signal was generated when all these xauusd rules were met. The exit signal is given when a trading signal in opposite trend direction is generated ie. When the technical indicators reverse.

The good thing about using such a trading system is that we are using various types of indicators to confirm trade signals and avoid as many whip saws as possible in the process.

Stochastic - is a momentum oscillator
RSI - is a momentum oscillator
MAs Indicator- is a market trend following trading indicator
MACD- is a market trend following xauusd indicator

It's very helpful to combine more than one technical indicator, as a combination of signals is better than relying on a single indicator. The technical indicator combinations reinforce each other, & cancel out false whip saw fake-out trade signals.

A trend following trading indicator helps one to see the overall picture, while using more than 1 momentum indicator gives better & more reliable entry & exit points for trading.

Best combination of technical indicators & their trading signals help to interpret a lot of the market activity.

Example 2:

Best Combination of Technical Indicators PDF Gold - Best Gold Indicators and Top 10 MT4 Indicators

Buy Trading Signal - Best Combination of Gold Indicators in Gold Trading

For this example the market trend is clearly upwards, but at some point there were a few whipsaws generated by the stochastic oscillator indicator, can you spot them? - So the question is how can a trader avoid trading these xauusd trading fake outs?

Well, the answer is that by looking at the other technical indicators such as MACD a xauusd trader could have avoided the whip saw, even the MACD indicator had not given a gold cross-over signal although it was very close to the zero centerline level, at the same time gradient at which the moving averages MAs turned wasn't so sharp as to signal a decisive trend reversal. The thing is that it’s not so obvious when it comes to recognizing fake outs: it is a skill that takes some time but after some time you can spot whipsaw fakeouts after some practice.

One tip is that as long as MACD indicator is above zero centerline even if the MACD lines are heading downward then the trend is still upwards. As you can see from the above example MACD never went below the zero line & afterwards the upward trend continued with the MACD maintaining above Zero line and continuing to move upwards.

Duringrange-bound sideways market trends Stochastic Technical Indicator will give the fastest trading signals which are prone to whipsaws. This is why stochastic oscillator indicator is best combined with other indicators and signals traded are confirmed by other one or two other indicators to form - Best Combination of Indicators - Top 10 MT4 Indicators - Best Combination of Technical Analysis Indicators for Gold Trading.

More Courses:

Trade Gold Trading

Best Indicator Combination of Indicators PDF Gold Trading