Absolutely NO THINKING is needed, just buy when Blue and sell when Red!
Many beginners in FOREX trading and trading in general are attracted to indicators, and think that by adding vast amount of indicators to their trading screens, their decisions will be of higher quality and their results would increase.
However, this is rarely the case. In most of the time, the beginners didn't took the time to understand the indicators they are trading with, and therefore use ones that are correlated.
Correlation means a strong relation in direction and actions by two or several things. In this case, several technical tools which indicate the same direction of the market and give similar signals at about the same time. Examples of correlated indicators are: MACD and Moving Averages - because they are both trend-following and based on Moving Averages. CCI and RSI are also correlative because they are both overbought\oversold indicators which usually give the same signals. Stochastic and Bollinger are also somewhat correlative - though with proper rules they can enforce a position or trading signal.
Such misuse leads to false confidence in signal quality and strength. When using correlated technical tools, the user ensures that they all point to the same direction, and therefore they are not productive and provide no added value to signal quality.
Instead of using indicators which are correlated, it is best to use indicators that have different goals and calculations. For example: Do not use more than 1-2 Overbought-Oversold indicators, because they are likely to show the same output. Instead, use a range identification indicator along with moving averages for trend confirmation. This way you trade with indicators that gauge several market conditions and have a stronger signal and a wider frame of view on the market.
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