EFFECTIVE CHART ANALYSIS - TRADE SETUPS
I always say that a clean chart is an easy chart. The less indicators there are, the better it will be to work more effectively and efficiently. So what exactly do you need to use given that there are so many tools and indicators available?
Moving Averages have been around since the beginning of the digital era in forex trading and it is still the most popular way to determine a trend and potential shift in trend change. Apart from this I like to incorporate the Relative Strength Index indicator and finally Trend Lines.
In the end, less is better and the cleaner your charts are the faster you will be able to make a call on placing a profitable trade. With this I am not saying that these are the only good indicators but that they are a rather good combination. There are many other indicators available and I am sure that they too can work well however, watch out to not load too many indicators on your charts that will just create confusion...
Keep it simple!