How to Identify Trends (Part One: The Best Use of Averages)
How to Identify Trends (Part One: The Best Use of Averages) From my perspective, this is the best way for traders to use averages; they aren't a strategy per se, but they give you a feel for the current market situation and help you make decisions. Step One: We load 5 averages for the following uses:
A strong signal that can be added to your strategy
No matter what your technical analysis strategy is, make your entry with a candlestick that closed with a range larger than the last two candles before it. Then, draw the same level of those candles on the RSI indicator; if the price break aligns with a break in the indicator, that's a strong signal and a high-accuracy entry point. Let me give you an illustrative example of that:
"You can use this method as an additional condition to enhance your own strategy, but don't rely on it as a standalone strategy."