How to use the indicators in the daily time frame

Indicators are often considered as blessings for the new traders. Many retail traders have developed perfect trade filter tools by using the most common indicators. But if you dig deep, you will understand, the majority of the novice traders are losing money since they don’t know the proper way to use any indicators. They overload their charts with tons of indicators and try to filter out the best trade. Unlike them, the experienced traders rely on few indicators reading. They consider these tools as their helping tools. Blending the technical data with the indicators reading and try to find the best possible trade setup.

Efficiently using the indicator is a very challenging task. So, read this article very carefully since we will give you a clear guideline to trade the market by using the most common indicators.

Use one or two indicators

You must find a simple way to make a profit from this market. Never think by using too many indicators, you will get the best possible trade setups.AS a new trader, use the RSI or stochastic indicator since it will help you to find the overbought and oversold conditions of any pairs. Things might seem a little bit complex at the initial stage but if stick the basic rules of investment, you can easily make a profit from this market. In case of RSI, consider the 70 marks as an oversold reading and the 30 marks as an overbought reading. The use of stochastic indicator is pretty much similar to the RSI. Use the 80 marks to find the overbought condition and the 20 marks as oversold conditions.

Trading the real market

When it comes to real-life trading, you can’t make a profit just by using the indicators reading. Find a Forex demo account opening form and start trading the market with the virtual dollar. Unless you feel confident with your demo trading performance, you should never trade the market with real money. Demo trading account is often considered as a practice field. Lose as much money as you want but make sure you learn something new from your losing trades. Try to take things seriously so that you can craft a balanced trading strategy. Forget about the losing orders and focus on long term goals. Take your time and trade the market with proper discipline and eventually, you will become better at trading.

Lower time frame trading technique

The novice traders often trade the lower time frame data with indicators. In lower time frame trading you will always get low-quality trade setups. Make sure you are not trading the lower time frame by using the indicators reading. Though higher time frame trading is extremely boring by following some basic rules, you can easily make a profit. You don’t have to overtrade the market to secure big gains from this market. Rely on quality trade execution. Train your mind so that you can find high-quality trades with an extreme level of accuracy. Forget about the shortcut in the trading business.

Modify the settings of the indicators

At times you must modify the settings of the indicators since it will make you a better trader. Never think you can change your life without doing the hard work. Always rely on long term goals and trade the market with proper discipline. Change the period settings in the indicators and see how the market reacts to a different time frame. Stop thinking about the low-quality trade setups and you will eventually become better at trading. If necessary, use the demo account and see how things work with the market dynamics. Demo trading account is the perfect place to backtest your trading strategy. Learn more about the trading industry and test different trading technique. Once you feel confident with your trading performance, start to trade the real market with managed risk.