Forex Trading Signals – 6 Key Ways to Generate Your Own Buy Or Sell Signals

It is quite possible for any trader to generate his own Buy and Sell signals by just following a simple technique of combining two or more technical indicators from a technical analysis by following the TREND. As it is usually said in forex trading that the trend is your friend!

First of all you must understand the definition and working of each of the technical indicators you want to use, like ADX, Stochastic, MACD, RSI, Parabolic SAR, Momentum and Bollinger Bands. As a matter of fact you must do a lot of study and research and then come out with the technical indicators you are most comfortable with.

The combinations are as follows: (1) ADX with Stochastic; (2) MACD with RSI; (3) MACD with Parabolic SAR; (4) RSI with Momentum; (5) RSI, ADX with Parabolic SAR; and (6) Bollinger Bands with ADX.

1. ADX with Stochastic;

Signal to buy:

When either %K or %D falls below the line, and then again crosses the bottom level upwards or when the curve %K crosses the curve %D from below upward.

When DMI+ is higher than DMI-

Signal to sell:

When oscillator grows above the line, and then crosses the top level downwards or when the curve %K crosses a curve %D from top to downward.

When DMI+ is lower than DMI-.

2. MACD with RSI;

Signals to buy:

When the MACD rises above the Signal line & above Zero

When the RSI rises above 30

Signal to sell:

When the MACD falls below the Signal line & is below zero

When the RSI is below 70

3. MACD with Parabolic SAR;

Signal to buy:

When a MACD bar is over 0 level and…

Source by Solomon Awotide

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