false signals
- Thread starter Arafx
- Start date
When trading based on candlestick patterns, dealing with false signals requires a combination of patience and confirmation. Waiting for additional confirmation from other technical indicators or the next candlestick can help filter out potential false signals and improve the accuracy of trades.
That's a wise strategy! Do you have a preferred set of indicators that you find works best with candlestick patterns?
Great tips. How do you incorporate volume analysis into your strategy? Does it often align with your other indicators?add technical indicators such as RSI or MACD, which can help confirm signals from the candlesticks. Also, don't forget about volume analysis
That’s a practical approach. What sources do you find most reliable for your research?
You can mitigate the impact of false signals by:
1. Using confirmation indicators or patterns to validate signals before entering trades.
2. Setting stop-loss orders at logical levels to limit potential losses if the trade turns out to be a false signal.
3. Waiting for additional confirmation from other technical indicators or price action before taking action.
There are a lot of thing that you should consider if you intend to make money out of Forex.
First you need a deep understanding of Forex and how the market operates.
Then you should have a pretty good understanding of both fundamental and technical analysis of the market.
Choose one or two pairs that you want to trade on and develop a plan based on indicators you feel comfortable working with.
Test your trading strategy based on win-loss ratio and risk-reward ratio. Please note that risk-reward ratio is more important than win-loss ratio.
Now test your strategy on a demo account. You would eventually find a proper strategy that you can work with.
Now the step is if you want to be a little bit advanced.
Find a programmer that writes MQL5, then ask him to write an EA based on your trading strategy and comply its details with the broker's features(spreads, commission, swaps, etc).
If the EA is as operative as you working with that strategy then run that EA 24/7 on a VPS.
First you need a deep understanding of Forex and how the market operates.
Then you should have a pretty good understanding of both fundamental and technical analysis of the market.
Choose one or two pairs that you want to trade on and develop a plan based on indicators you feel comfortable working with.
Test your trading strategy based on win-loss ratio and risk-reward ratio. Please note that risk-reward ratio is more important than win-loss ratio.
Now test your strategy on a demo account. You would eventually find a proper strategy that you can work with.
Now the step is if you want to be a little bit advanced.
Find a programmer that writes MQL5, then ask him to write an EA based on your trading strategy and comply its details with the broker's features(spreads, commission, swaps, etc).
If the EA is as operative as you working with that strategy then run that EA 24/7 on a VPS.
