Putting It All Together With ForexGen

In a perfect world, we could take just one of these indicators and trade strictly by what that indicator told us. The problem is that we DON’T live in a perfect world, and each of these indicators has imperfections. That is why many traders combine different indicators together so that they can “screen” each other. They might have 3 different indicators and they won’t trade unless all 3 indicators give them the same answer. As you continue your journey as a trader, you will discover what indicators work best for you. We can tell you that we like using MACD, Stochastics, and RSI, but you might have a different preference. Every trader out there has tried to find the “magic combination” of indicators that will always give them the right signals, but the truth is that there is no such thing. We urge you to study each indicator on its own until you know EXACTLY how it reacts to price movement, and then come up with your own combination that fits your trading style. Later on in the course, we will show you a system that combines different indicators to give you an idea of how they can compliment each other. Everything you learn about trading is like a tool that is being added to your trader’s toolbox. Your tools will make it easier for you to “build” your trading account. Bollinger Bands * Used to measure the market’s volatility * They act like mini support and resistance levels * Bollinger Bounce o A strategy that relies on the notion that price tends to always return to the middle of the Bollinger Bands o You buy when the price hits the lower Bollinger band o You sell when the price hits the upper Bollinger band o Best used in ranging markets * Bollinger Squeeze o A strategy that is used to catch breakouts early o When the Bollinger bands “squeeze” the price, it means that the market is very quiet, and a breakout is eminent. Once a breakout occurs, we enter a trade on whatever side the price made its breakout. * CABLE: A slang used among traders to indicate GBP/USD exchange rate. CALL RATE: Overnight inter-bank interest rate.