Invalid Indicator Signal Sign
In conducting the analysis, traders may often feel confused and think the indicators are not working well. Here are some signs when the indicator signal is not yet valid:
Not Supported By Some Time Frames Below
When the indicator signal is not supported by several timeframes, then it is a sign that the signal is not yet valid. For example, H4 is a buy signal, H1 is a sell signal and M15 is a buy signal. This sometimes makes traders confused what position should be done. If the trader is not convinced, then you should wait for a more valid and supportive signal between timeframes.
Exit Signals in Support and Resistance Areas
It is also common that the indicator gives buy signals in the resistance area, and sell signals in the support area. This also needs to be considered carefully, if a trader is playing to follow the trend then you should wait until a breakout occurs and buy or sell when the indicator has given a strong signal.
Price is in a Narrow Support and Resistance Area
This also usually happens and traders do not realize it, even desperate to open a position even though the price is in a support and resistance area that has a narrow range. The thing that traders often forget is to draw a trendline to find out the resistance or support area of the trend movement.
So that traders often open positions that are reversed because that area usually occurs when price movements are not clear and will confuse the trader's analysis. So you should wait for the price to breakout first to see a bigger opportunity with a larger range of support and resistance so that the price movement will be clearer.
Price Movement Not Supported By Market
The next signs of an invalid forex indicator signal usually appear in a quiet market. This of course will be very tedious if we have already opened a position and the price does not immediately move according to the indicators we have. It is possible that the price will reverse and move against our previous prediction even though there is still a profit opportunity or according to our analysis.
Those were some of the things that made our indicator signals seem not going well and thought to look for the best and most appropriate indicators. Actually, the thing that needs to be considered in forex trading is to carry out trades according to the rules or signals that we have agreed on before, and these signals take time to appear and provide very valid signals. Because it takes time, patience is very much required so as not to make mistakes that shouldn't be necessary.
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