3/16/2015

ASimpleSystem

ASimpleSystem
By:MichaelDuaneArcher,datedApril22nd,2013

Related"ASimpleSystem"
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ThissimplesystemisanindicatorbatterythatwasshowntomebyatraderatPeavey&Companyintheearly1970s,

1. IntroductiontoSimpleSystem

whereIcutmytradingteethoncommodityfutures.Insofarasfuturesandcurrenciesarebothhighleveragemarkets,it FOREXTrading
shouldbeequallyathomeineithermarket.Thesimplesystemwillalsogiveyousomeideaonhowtradingmethods

2. GeneralPrinciplesofTechnical

FOREXTools

basedonindicators,anindicatorbattery,ifyouwill,aredeveloped.Thisoneisindeedsimple!Someofthemarevery
complexandneedtobecomputerprogrammedtouseeffectivelyinthefastmovingFOREXmarkets.

3. KeepItSimpleToolboxforFOREX

Tip:Useonlyonetimeframetotradethesimplesystemfornow.Itcanbeappliedonanyfrom5minutesto1day.I

4. ASimpleSystem

recommend15minute,30minute,or1hourtobegin.

5. ComplexSystemsandGoodmans

LawofTradingSystems

Thesimplesystemisanindicatorbatterycomposedoftwoindicators,amovingaveragecrossoverandamomentum

6. PairstoTrade

index,similartoanoscillator.Abatteryisacombinationofindicators.Whentheindicatorsinabatteryarecombinedto
automaticallygeneratebuyandselltradesignalsbyacertainsetofrules,itisreferredtoasanexpertadvisor,orEA.

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ASimpleSystem

Tip:Anindicatorbatteryoranexpertadvisorcouldbeusedasaprimarytradingmethodorasacheckontheprimarymethod.
YoumaywishtoreviewTechnicalAnalysis,whichprovidesdetailsontheworkings,strengths,andweaknessesofmovingaveragesandoscillators.All
tradingplatformsoffermovingaverages,momentumindexes,andprebuiltoscillators.ThesimplesystemisbuiltonMetaTrader4,butotherplatforms
maybeusedwithverylittledifference.
YouwillfindaccesstoindicatorsinthenavigationwindowofMT4.Herearesomeofthembrokendownaseithertradingortrendingtools.
Thisisjustasampleofthoseavailable.But,again,breakingthemdowntoeithertradingortrendingidentifiesthenatureofmostofthem.Ifyoucannot
ascertainthetypeinadvance,tryitonaverysharptrendingmarketandaverychoppytradingmarket.Theperformancewilltellyouthewholestory!

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IndicatorComparisonTradingandTrending

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"AdaptedfromGettingStartedinCurrencyTrading.
Copyright2012byMichaelDuaneArcher.Allrightsreserved.JohnWiley&Sons,Inc."
Contentprovidedhereunderexclusivelicense

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