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Facebook Using Multiple Indicators The use of multiple chart indicators is common in the world of forex and binary options trading. Traders tend to use multiple chart indicators to get a better signals on a better timing to enter the market.

All indicators are mean to be used solely, and in the perfect scenario we are mean to trade strictly by what they tell us.

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However, it is not perfect in most of the scenario in the real world, you might experience losses by following what you think it was a winning signal. In fact, indicators are not perfect, each of them have what they are good at and what they are not.

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And this is why almost all traders tend to combine different indicators to get a better prediction on the price movement. As for today I will introduce 2 combination of indicators that I use the most, and I think they works quite well as a set. Here is how you can use these two as a set.

When the RSI reached the overbought level and try to head back to the 30 to 70 zone this is a bullish signal.

Not long after that the move averages crossover and move underneath the candles, again this is a bullish signal.

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When the two indicators are giving out the same signal, the chance of you getting profit is higher than just referring to a single indicator since the moving average is help to filter out some of the fake breakouts from the RSI which make it more accurate. Stochastic Leading. Again, the used of lagging and leading indicator as a set is to predict the future by confirming the present.

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And therefore in most of the multi indicators for binary options when you use multiple indictors, you will use as least one lagging and one leading indicators. Here is how it works. As you might know that Bollinger bands act as a dynamic resistance and support level which price move to the opposite direction when it reaches either of the band.

On the other hand, Stochastic is similar to RSI, which it gives out oversold and overbought signals. Therefore we can keep an eye on stochastic when it breaks out from the overbought or oversold level and get a confirmation signal from Bollinger bands.

We can open position accordingly when these two signals match.

Indicators and Strategies

There are a lot of other combination of technical indicators. Please feel free to share your combination with me and have a discussion to see if they works! Author lionbo Posted on.