| Indicators are the most used form of technical tools | | | | be a losing one if faced with an opposite signal from |
| in the field of FOREX Trading. In this article I will | | | | the 1 Hour chart, your trades can have explosive |
| describe the most profitable and effective methods | | | | accuracy if confirmed with signals of the same |
| of using indicators in your trading. | | | | direction, in higher timeframes. This way you are |
| Key Element 1: Chart Patterns Confirmation | | | | flowing against with the bigger waves of the market, |
| One of the best ways of profiting with indicators is | | | | and have a bigger chance of success. |
| to cross verify them with chart patterns. Chart | | | | Key Element 3: Combine With Existing Trading |
| patterns is the oldest idea of technical analysis, | | | | System |
| whose roots trace back to the beginning of 20th | | | | A trader can combine indicators to an |
| century. Confirming your indicator signals with chart | | | | already-successfull trading system, to make it even |
| patterns can enhance your winning percentage | | | | more profitable and reduce its drawdown. Sometimes |
| greatly, and provide you with more profitable entries. | | | | a single indicator can create an amazing positive |
| Spotting a breakout and confirming with an trending | | | | change in the system's performance. It is important |
| indicator can get you on a big trend, and filter range | | | | that the indicator has strong logic and a reason to |
| periods which result in many whipsaws. | | | | combine in the system. A range filter would be very |
| Key Element 2: Larger Time Frame Confirmation | | | | helpful to a trend-following system, while another |
| Another way to increase your profits is to | | | | lagging indicator can be correlative and useless. |
| cross-verify your trades with signals from a larger | | | | Experiment with several indicator to find the winning |
| timeframe. Exactly like your signal on 15M chart can | | | | combination. |