1st of all you need to determine if the currency pair is moving uptrend, downtrend or sideways. These can be easily drawn by connecting at least two points.
The blue line shows uptrend, red line shows downtrend and the black line shows sideway.
The horizontal line shows support and resistant and can be easily drawn. One good example is the black line.
The below indicator is MACD with histogram. There are lots of indicators such as stochastic, william %R, RSI etc. Some use bollinger band, moving average etc. However, on my chart I only shows the simple and easy tools. Don't be over stressed by using all the indicators. They are lagging indicators and moves after the prices moved.
Uptrend
Just joint two higher high points below and buy once it touches the low point and sell at the previous support.
Downtrend
Just joint two lower low points above and sell once it touched the high point and buy at the previous support.
Sideway
Joint two highest points and joint two lowest points. Buy at the lowest point and sell at the highest point. Or sell at the highest point and buy at the lowest point.
Always target your limit and cut loss using the previous horizontal support/ressistant line. Most of the time the price hover around the range so be prepared to enter.
Don't be overwhelm by indicators. Just follow the simple rule as above to capture live price actions. Always have a target of win/loss ratio of 2 : 1. So even when you are correct 50% of the time you still win.
Most trader loss because they have the oppposite rule. The keep holding to losing trade and take small profit instead. I'll cover more on cut loss soon.
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