When I started out, I thought it would be easy, however, it’s taken 2 years of screentime to get this far. Also understanding that on crappy market days you will lose. I will try my best to explain my methodology as plain and simple as possible.
My experience is (after testdriving hundreds of indicators – bought, borrowed and found), that there is no single indicator that can give one 100% accurate results consistently – simply, indicators meet certain criteria in their codes, and signal when the conditions are met. They do not “see” Support and resistance, market conditions, news, etc. They will give at best 80% success. Human intervention is needed to achieve the other 20%, even though you have to become a “robot”
Firstly, I needed an entry signal.
I experimented with everything ....adx, rsi, ema, macd.......various values and settings – and eventually settled for a 4 EMA close x 4 EMA open cross......signals are spot on. There may be other values or crossings which I have not tried, however, 4x4 has not let me down.
Secondly, I needed to know where in the market I am with regards to short term and medium term trends, when the trend is starting, fading, ranging, strength (how tight or loose EMA’s are) etc. I selected the 34 period EMA, 50 period EMA (medium term trend......if flat ranging), and EMA fan 3 till 14 (short term trend).
Thirdly, I needed to identify OB/OS areas, and chose a Fractal indicator.
Fourthly I needed to analyse the “here and now” situation”, and chose a CCI Woodie.
For support, I have Pivots, Round numbers, Supply and demand (Support and Resistance), Trendlines.
Analysis is very simple, and in a few seconds you can ensure whether the trade is going to make it, or decide on the expiry period. And that my friends, gives you the edge over willy nilly taking a trade when an arrow or signals appear.