Now that you know how some of the most common chart indicators work, you’re ready to get down and dirty with some examples.
Better yet, let’s combine some of these indicators and see how their trade signals pan out.
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 signal.
Better yet, let’s combine some of these indicators and see how their trade signals pan out.
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 signal.
