Creating a well-rounded trading system: a practical approach.
In this blog, we will share how to build a comprehensive trading system, featuring indicator recommendations from our extensive library.
There are 3 key factors to focus on: Trend, Zone, and Signal. Let's dive in and see what each one is all about!
✔ Trend
First things first, you gotta figure out the trend of the market - is it going up, down, or sideways?
- If you're a fan of using price action, Zigzag Swing Pro is your go-to for recognizing market structure.
- To identify trending markets, Half Trend Pro, Easy Trend, and Waddah Attar Explosion Pro are solid choices.
- And if you want to detect choppy markets, Sidewayz MA is a great tool.
✔ Zone
Once you've nailed down the trend, it's time to find the sweet spot - the trading zone where you're most likely to get promising signals.
There are 2 types of zones: Supply-Demand and Support-Resistance.
- For Supply-Demand, check out Supply/Demand Discovery.
- And for Support-Resistance, Support/Resistance Radar and Volume Delta are your best bets.
* Regarding Volume Delta: you may wonder why it's a "Zone" indicator? If you see a strong positive delta at a swing-low candle or a strong negative delta at a swing-high candle, then you can extend the candle's range to the right to have a reliable zone. That's the trick.
✔ Signal
Now all that's left is to sit back and wait for signals to show up in the zone.
There are 2 types of signals: pullback and reversal signals.
- Pullback signals: They are super reliable in a trending market, so keep that in mind. Solar Wind is a great indicator for finding pullback signals.
- Reversal signals: If you're dealing with a choppy market, go for Bollinger Reversal Pro or Multi-Osc OB/OS Overlap for solid reversal signals.
Don't be afraid to mix and match multiple indicators for trend, zone, and signal detection - it can lead to seriously reliable signals. The more signals of the same type from different indicators overlap, the stronger the signal becomes.