Combining indicators with one another can help you to find other perspectives on price movements. This design can also make the indicators complement each other. This kind of thing commonly referred to as the trading system. For example, a moving average which is basically equipped with trend indicator stochastic oscillator lines to determine which is the timing the buy or sell.
We will discuss this time just a simple and popular system only, as the basis for building trading systems. Usually, traders combine two or three different indicators in their trading system. The decision to buy or sell a third taken while the indicators have been "confirmed" the same signal.
1. The utilization pattern
This is a very simple system. You only need to recognize patterns that appear to predict further price movement. Of course, to be able to recognize the emergence of a pattern, you must reproduce the exercise so that your observations are increasingly observant.
2. Fibonacci retracement + price/candlestick pattern
This technique can be said quite simply. All you need is the trend line and a little help from Fibonacci retracement and a little help from the candlestick and/or price pattern.
This system is based on trends. Therefore, it is of course a good understanding of the trend itself is absolutely necessary. This system also uses a strategy that leverages trading bounce reference Fibonacci retracement level.
First you should do is determine the trend. The next step, pull Fibonaci retracement based on last swing you see on the chart. Then, note the reference the Fibonacci retracement area, i.e., 38.2%, 50% and 38.4%.
Next, find the reflection of the underlying area of Fibonacci. Confirm that you can use is the candlestick patterns or pattern.
So you have to wait for a short-term pullback to areas of reference of Fibonacci and then seek confirmation whether there is a pattern of bullish/bearish. Candlestick patterns can be, morning/evening star, price, or engulfing pattern such as a double top, double bottom, and others.
3. Fibonacci retracement + stochastic oscillator + CCI
Still with Fibonacci retracement, but this time we are going to combine that with stochastic and CCI. Its use is also quite easy. We wait until a short-term pullback occurs to the reference signal, and then wait a Fibonacci buy/sell of stochastic and CCI. Signals should emerge from both these indicators to obtain a strong signal confirmation.
Trading systems described above are just a few examples that you can use. You can experiment to integrate some indicators to be a trading system that suits your trading style.
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