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Forex Indicators Combined

Posted in Charts by Lewis Wolfe
Tuesday, November 18th, 2008 7:04 AM GMT

Here’s a tricky question.
It’s a 5-min chart so the action is thick and fast - doesn’t matter which pair… And the question is what to do at the little bump in the down trend. Parabolic SAR has reversed, and the RSI, plotted below, has also come back above 30 - but, with the wonderful benefit of hindsight, it’s only a pause in the trend…

ss313.png


Time to break out other oscillators… here’s good old MACD.

ss314.png

No signal to buy, which you would also find with the slightly-maligned Awesome Oscillator. So how not bite on this whipsaw and pile into an imaginary reversal too quickly? - double-check the indicators, and - I would suggest, being naturally over-cautious - be very cautious in these situations…

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