August 4, 2015

Should I use fundamentals, support, candlesticks

Trading is about odds and putting the odds in your favour. Although with Pips Predator we don’t add fundamentals, supports, resistances, candlesticks (except you could argue they are already all incorporated into the price) you can add the odds in your favour by examining other factors before trading.

The reason we only look at the indicator is that we balanced the additional benefits with the additional time costs and found the indicator alone was great.

But what if you want to use the signal only when the broader trend is in the direction of the trade? Spotting the trend is easy enough, but remember that the longer a trend is in place the more significant it is. Also, a trend line, is really a support line and so the rule is the more often it is ‘touched’ but not broken, the more significant its relevance too.

As mentioned, I do not use trends when using the Pips Predator because I created it to help us make our trading more efficient, effective in terms of return on time. If we continue to look at too many other factors, the dangers are that we get too few signals and also take up too much of our time.