It is quite possible for any trader to generate their own Buy and Sell signals simply by following a simple technique of combining two or more technical indicators from a technical analysis following the TREND. As they say in the forex market, the trend is your friend!
First of all, you need to understand the definition and operation of each of the technical indicators that you want to use, such as ADX, Stochastic, MACD, RSI, Parabolic SAR, Momentum, and Bollinger Bands. In fact, you need to do a lot of study and research and then get the technical indicators that you are most comfortable with.
The combinations are as follows: (1) ADX with stochastic; (2) MACD with RSI; (3) MACD with parabolic SAR; (4) RSI with Momentum; (5) RSI, ADX with Parabolic SAR; and (6) Bollinger Bands with ADX.
1. ADX with stochastic;
Signal to buy:
When% K or% D falls below the line and then crosses the lower level back up or when the% K curve crosses the% D curve from bottom to top.
When DMI + is greater than DMI-
Signal to sell:
When the oscillator rises above the line and then crosses the upper level down or when the% K curve crosses a% D curve from top to bottom.
When DMI + is less than DMI-.
2. MACD with RSI;
Signals to buy:
When the MACD rises above the signal line and above zero
When the RSI rises above 30
Signal to sell:
When the MACD falls below the signal line and is below zero
When the RSI is below 70
3. MACD with Parabolic SAR;
Signal to buy:
When a MACD bar is above the 0 level and is rising, the signal line below the end of the bars and rising and the SAR points below the price chart.
Signal to sell:
When MACD bars are below the 0 level and fall, the signal line above the bars ends and falls and the SAR points above the price.
4. RSI with Momentum;
Signal to buy:
RSI rises above 50 but remains below 70, and momentum rises above zero.
Signal to sell:
RSI dips below 50 but remains above 30 and momentum falls below zero
5. RSI, ADX with Parabolic SAR;
Signal to buy:
1- When RSI crosses the 30 level and rises
2- SAR points below the price chart
3- DMI + above DMI-, ADX line crosses level 20, ADX and DMI + rising and DMI- descending.
Exit when the SAR points cross the price chart and the ADX moves below 30 from above while above DMI + and DMI-
Signal to sell:
1- When RSI crosses the 70 level and falls
2- SAR points on the price chart
3- The ADX line crosses 20 levels and rises where DMI + goes down and DMI- goes up.
Exit when the SAR points cross the price chart and the ADX moves below 30 from above
and above DMI + and DMI-
6. Bollinger Bands with ADX.
Signal to buy:
When the price below the lower Bollinger band (20, 2) and DMI + crosses DMI-, the ADX line crosses the 20 level, ADX and DMI + go up and DMI- fall.
Signal to sell:
When the price above the upper Bollinger band (20, 2) and the ADX line crosses 20 levels and rises, where DMI + falls and DMI- rises.
My own comfort area is the combination of MACD with RSI to generate my buy and sell signals for intraday trading.
Happy trading