How to use Buy & Sell Signals
How to use Buy & Sell Signals
When you're backtesting/looking at the Buy/Sell signals on the chart, make sure that you don't consider signals during night hours! There is no point to assess any indicator during periods where there is extremely low volatility.
Technical analysis works best during open hours and during high volatility, and in markets with high liquidity. That is why we need to assess all indicators under the correct circumstances.
General Recommendation
Our best recommendation is that you get a structured approach on how to trade. You gain this buy using our free SMC indicator. Use the Range feature with Premium and Discount and use this general rule:
Sell in premium.
Buy in Discount.
Then use any indicator or our signals with default settings to confirm entries in those areas. This simple rule will help you get better trades in the long term.
How to use Buy & Sell Signals
How to use Momentum Trend Strategy
Avoid False Signals
How to avoid any possible false signals, don’t trade against the trend, need to learn patterns of support and resistance levels, higher highs, higher lows in an uptrend, lower highs and lower lows in a downtrend, the signals are accurate, what causes a signal to fail it’s not the signal itself, hedge funds and big players know about these tools and they will do everything they can to make us retail investors lose, they make money out of someone else’s losses, and they purposely create false breakouts to catch us off guard.
If everything was perfect then everyone would be rich but how could it be possible if no one would sell in losses, it’s just not possible.
Those indicators I use are my preference and I use them based on what I already know, Sometimes copying someone else’s strategy doesn’t mean it’ll work for you the same, you need to learn more about what’s really happening behind the scene, if you are totally dependent on buy and sell signals trust me you’ll lose more than what you’ll earn.
I want everyone to make money but you need to learn how to read patterns. Indicators are there to help you make a trading decision, there’s no perfect magical indicator.
You still need to consider risk management. Set a take profit and a stop loss. I leverage on all my positions, I take losses at times but never liquidated. I started like everyone else, not knowing anything, if I did it I know you can do it too.
Trading is not an easy task, but if you’re willing to put in the work you will get far.
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