When I look for a trade setup I look for the strongest key points that can help me motivate my decision to buy or sell. There are a few things that you can use during your decision making process...
MACD and so on
Indicators can be extremely helpful when used in the correct way. Like using a moving average as a trend filter or using the RSI to determine the strength of the market.
Price action is the best form of a leading indicator that you will be able to find. But that doesn't mean that there won't be false signals, which happens all the time.
There are three main factors that influence your trades and their success:
If you can master these three things you will be well positioned as a high probability trader. To get a good edge in the market, you need to be able to filter out false signals as much as possible...
This is one of my favorite ways to trade because the strike rate can be so good, not to mention the risk to reward ratio. Look at this chart on EURUSD and notice how I used the RSI overbought and oversold levels in combination with price action to spot buy and sell signals:
Price action on its own is powerful, but when adding in one more box on the list to check makes it even more powerful. Filtering out potential bad signals can save you losses and that will add to your edge.
You can connect with me here:
Markup Buddy https://www.profitfxza.com/markup-buddy