Successful Signal Trading

It is rather possible for any trader to produce his personal “Buy” and “Sell” signals by just following a painless technique of combining two or more technical indicators from a technical analysis by pursuing the TREND. As it is usually said in foreign exchange trading that the trend is your friend!

Initially you must fully grasp the definition and working of each of the technical indicators you would like to use, like ADX, Stochastic, MACD, RSI, Parabolic SAR, Momentum and Bollinger Bands. As a point of fact you have to a lot of study and research and then emerge 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:

Any time either %K or %D falls underneath the line, and on the other hand crosses the bottom level upwards or when the curvature %K crosses the bend %D from underneath upward.

When DMI+ is on top of DMI-

Signal to sell:

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

When DMI+ is leaner 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 trade:

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

When the RSI is below 70

3. MACD with Parabolic SAR;

Signal to buy:

When a MACD bar has ended 0 level and rising, signal line underneath bars end and rising and SAR dots under price chart.

Signal to Sell:

When MACD bars is under 0 level and falling, signal line over bars end and falling and SAR dots over price.

4. RSI, ADX with Parabolic SAR;

Signal to buy:

1- When RSI cross 30 level and rising up

2- SAR dots underneath the price chart

3- DMI+ over DMI-, ADX line cross 20 level, ADX and DMI+ rising and DMI- falling.

Exit when SAR dots make a cross with the cost chart & ADX moving below 30 from above while above DMI+ and DMI-

Signal to sell:

1- When RSI cross 70 level & falling down

2- SAR dots over the price chart

3- ADX line cross 20 levels and rising where DMI+ falling and DMI- rising.

Exit when SAR dots make a cross with price chart & ADX moving under 30 from above

& above DMI+ and DMI-.

5. RSI with Momentum;

Signal to buy:

RSI rises above 50 but stays under 70, and momentum rises above zero.

Signal to sell:

RSI falls beneath 50 but remains above 30, and momentum falls under zero

6. Bollinger Bands with ADX.

Signal to buy:

When the price below the low band of Bollinger (20, 2) & DMI+ cross over DMI-, ADX line cross 20 level, ADX and DMI+ rising and DMI- falling.

Signal to sell:

When the price above the upper band of Bollinger (20, 2) & ADX line cross 20 levels and rising where DMI+ falling and DMI- rising.

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